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AstraZeneca by its US rivals Pfizer. The American company has been warned | :00:00. | :00:00. | |
not to use the UK as a tax haven. Now on BBC News, all the latest | :00:07. | :00:12. | |
business news live from Singapore. Could it be the biggest stock market | :00:13. | :00:23. | |
listing in history? Alibaba seeks billions from investors. | :00:24. | :00:26. | |
Could Indonesian coffee become less available to foreigners? | :00:27. | :00:43. | |
Welcome to Asia Business Report. I'm Rico Hizon. Starting with China's | :00:44. | :00:48. | |
Alibaba. It has filed for a share sale in the US, which could make it | :00:49. | :00:52. | |
as much as $15 billion. In initial stages of the filing, it hasn't | :00:53. | :00:55. | |
specified how much stock will be sold or at what price. The online | :00:56. | :00:59. | |
shopping giant operates a network of e`commerce services and brings in | :01:00. | :01:02. | |
more money than Amazon and eBay combined. But how well known is | :01:03. | :01:13. | |
Alibaba in the US? To give you an idea of how much | :01:14. | :01:17. | |
interest it is already building, Yahoo has a 40% stake in Alibaba and | :01:18. | :01:20. | |
investors are buying shares in Yahoo just to have some of its shares in | :01:21. | :01:29. | |
Alibaba. There is already quite a bit of interest, despite the fact | :01:30. | :01:33. | |
that it might not be as well`known and amongst regular kind of | :01:34. | :01:38. | |
investors. ``kinds. The one thing that might hold investors back in | :01:39. | :01:42. | |
the US is the complex web of businesses. That might deter some | :01:43. | :01:45. | |
investors. $1 billion, US, is that realistic? It is probably going to | :01:46. | :01:53. | |
be more than that. The $1 billion is really just a placeholder, a number | :01:54. | :01:56. | |
they have to put. But most people believe they can raise anywhere from | :01:57. | :02:12. | |
$15 billion ` $20 billion. If they accomplish that, it would beat | :02:13. | :02:15. | |
Facebook's IPO. They decided to file in the US rather than their home | :02:16. | :02:19. | |
base. Why? The United States allows for more control. That's what | :02:20. | :02:30. | |
executives want. Alibaba proposed something different. Their | :02:31. | :02:32. | |
shareholders, 20 members of the executive team, are able to vote on | :02:33. | :02:35. | |
the people who are part of the board. That wasn't going to fly with | :02:36. | :02:45. | |
regulators in Hong Kong. But it's something that was accepted here in | :02:46. | :02:49. | |
the US, which is why they decided to list in New York. Now to a | :02:50. | :02:52. | |
marketplace which facilitates consumer to consumer online | :02:53. | :02:59. | |
shopping. Our team in China that with a user who set up her own | :03:00. | :03:06. | |
business through this online portal. It is the supreme shopping platform. | :03:07. | :03:09. | |
There is almost nothing you can't buy on it. People call me Lunar Mum | :03:10. | :03:18. | |
on internet. I sell maternity and infant products. It was hard at the | :03:19. | :03:25. | |
beginning. Every day I wouldn't finish before midnight and I had to | :03:26. | :03:30. | |
look after my baby as well. Now I have eight staff, divided into | :03:31. | :03:37. | |
morning and evening ships. ``shifts. I even have customer service and a | :03:38. | :03:42. | |
graphic designer. We chat to customers online before finalising | :03:43. | :03:46. | |
the orders. In the afternoon, we start sorting the goods according to | :03:47. | :03:49. | |
orders. We pack them into parcels for the delivery men. When I | :03:50. | :03:56. | |
started, I made 10,000 yuan every month. Now the income is 40 times | :03:57. | :04:03. | |
that. All young people now shop online. Even older people are | :04:04. | :04:08. | |
joining the trend. The website has transformed my life. I believe its | :04:09. | :04:25. | |
influence is only going to increase. The successful user. | :04:26. | :04:37. | |
China tries to rebuild its dairy industry. Demand for imports soared | :04:38. | :04:43. | |
after the milk scandal of 2008 with authorities trying to help local | :04:44. | :04:46. | |
producers claw back market share from suppliers in New Zealand, | :04:47. | :04:51. | |
Australia and Europe. Stopping imports from producers who aren't | :04:52. | :04:55. | |
registered with them. New Zealand is a major exporter of milk formula to | :04:56. | :05:00. | |
China. I spoke to the head of a trade in Auckland and asked how this | :05:01. | :05:03. | |
would affect his industry. Each year it is about 200 million New Zealand | :05:04. | :05:09. | |
dollars of infant milk formula at the moment. This is a rising market | :05:10. | :05:15. | |
for New Zealand with our free trade agreement signed in 2008. It is a | :05:16. | :05:20. | |
part of our market that is growing and a part of the market that | :05:21. | :05:25. | |
entrepreneurial companies have taken a share of. Of course now, the | :05:26. | :05:31. | |
market is at risk. According to the control, suppliers have to be | :05:32. | :05:35. | |
approved by mainland authorities and according to estimates, only six of | :05:36. | :05:40. | |
the 30 suppliers were approved. How do you think this could impact in | :05:41. | :05:46. | |
terms of production and revenues in the New Zealand baby formula | :05:47. | :05:53. | |
market? What we will see is the initial audit covered the eight of | :05:54. | :06:04. | |
30 companies. What we will see is pressure put on the brand holders, | :06:05. | :06:10. | |
because, for some reason, the Chinese are looking at the brands | :06:11. | :06:14. | |
and are looking to have the brands reduced. Whereas, from the New | :06:15. | :06:17. | |
Zealand market I think they should look at the quality of the product | :06:18. | :06:23. | |
being supplied. That will give accountability to consumers in the | :06:24. | :06:27. | |
China market. There is no need to exclude part of our supply chain. It | :06:28. | :06:37. | |
has been billed as one of the most high profile cases in Vietnam, an | :06:38. | :06:42. | |
appeal will be ruled today for two sentenced to death for embezzlement. | :06:43. | :06:45. | |
Both worked for a state`owned shipping company. The man on the | :06:46. | :06:50. | |
left is a former chairman and the right is the company's general | :06:51. | :06:54. | |
director. They were accused of siphoning half $1 million. I ask how | :06:55. | :07:01. | |
this could affect investment in the country. Last year, Vietnam held an | :07:02. | :07:08. | |
estimated 300 corruption trials are including this trial. And, a | :07:09. | :07:14. | |
majority related to state`owned prices, showing immense problems | :07:15. | :07:20. | |
within the state sector. That is what the foreign investors are | :07:21. | :07:23. | |
worried about. They are worried about the lack of transparency and | :07:24. | :07:26. | |
the lack of government rules and the rule of law. Without fundamental | :07:27. | :07:34. | |
changes within the system, it is clearly politically motivated | :07:35. | :07:37. | |
changes, I don't think it would be possible for the Vietnamese | :07:38. | :07:43. | |
government to fight corruption. Foreign investors are aware of that. | :07:44. | :07:48. | |
They demand something to happen within the system to make their life | :07:49. | :07:58. | |
easier within Vietnam's. `` within Vitenam. If it is breakfast where | :07:59. | :08:02. | |
you are watching, you might have had your first couple of coffee or at | :08:03. | :08:06. | |
least he might be thinking about it. But do you know where it comes from? | :08:07. | :08:09. | |
Indonesia is the world's fourth largest coffee producer and in the | :08:10. | :08:12. | |
past is exported almost all of it. Now, Indonesians are demanding | :08:13. | :08:15. | |
better coffee and that is expected to put a shotgun exports. Afternoon | :08:16. | :08:16. | |
coffee. It is fast becoming Indonesia's | :08:17. | :08:19. | |
pastime. This couple opened this shop last year. She admits business | :08:20. | :08:23. | |
is slow but she is confident that the future is bright. Older | :08:24. | :08:31. | |
generations like my father or uncle, the way they drink coffee, they just | :08:32. | :08:34. | |
drink the popular Indonesian instant coffee or they just put water over | :08:35. | :08:37. | |
the ground coffee and they drink the sediment. Now, the young generation | :08:38. | :08:46. | |
drinks espresso, cappuccino. This is where all of that coffee comes from. | :08:47. | :08:53. | |
These are unprocessed coffee beans. In the past, Indonesian farmers | :08:54. | :08:55. | |
would pick the beans indiscriminately. It is faster but | :08:56. | :09:00. | |
the result is a lower quality coffee. Now, it pays to pick only | :09:01. | :09:06. | |
the best beans. This man has been a coffee farmer for more than 20 | :09:07. | :09:11. | |
years. He first learned about the plant on his grandmother's farm. | :09:12. | :09:14. | |
But, until recently, nobody taught him how to produce high`quality | :09:15. | :09:17. | |
coffee. He is all smiles while picking the best beans. TRANSLATION: | :09:18. | :09:23. | |
I used to sell one kilogram of regular quality coffee beans. For | :09:24. | :09:26. | |
the superior quality, people are willing to pay almost three times | :09:27. | :09:27. | |
the price. The best Indonesian coffee used to | :09:28. | :09:44. | |
be mainly for exports. This exporter sells specialty coffee, the highest | :09:45. | :09:51. | |
in the trade, locally and overseas. The majority will be local. Locals | :09:52. | :10:02. | |
will consume it. Mid to upper class. We do not expect foreigners, because | :10:03. | :10:05. | |
our biggest market is our growing mid`upper`class. But the bulk of | :10:06. | :10:14. | |
Indonesian coffee still has to go overseas for some time as it had | :10:15. | :10:17. | |
enough demand in the country. But farmers are increasingly setting the | :10:18. | :10:19. | |
price for the popular commodity. Thank you for investing your time | :10:20. | :10:40. | |
with us. The sport is up next. The top stories this hour: Eight more | :10:41. | :10:43. | |
schoolgirls have been abducted in Nigeria. The US is sending a team to | :10:44. | :10:49. | |
help the Nigerian government find the hundreds now missing. | :10:50. | :10:52. | |
As Russia rejects plans for new talks over Ukraine, NATO | :10:53. | :10:53. |