17/06/2016 Asia Business Report

It has been a rollercoaster week for global investors. Can anything calm

the jitters being sold from Asia to the US? And from manufacturing to

innovation, how China is looking for new ways to expand its economy. Good

morning, Asia. Hello, world. And welcome to Asia Business Report. I'm

Rico Hizon. Thank you for investing your time with us. It is Friday.

Glad you could join us. It has been quite a week, with major meetings in

the US and Japan keeping investors on edge and leading to volatility in

global stocks and currencies. You have the ups and downs continuing as

we count down next year's vote on whether Britain will indeed leave or

remain in the EU. How should investors manage their portfolios?

The way I look at it is that anything would have been fine simply

because the market hates uncertainty. We did not know what

the Federal Reserve would do, what the Bank of Japan would do, and what

Britain will do. Now we have the American Federal decision out of the

way and Japan out of the way, the Bank of Japan decision out of the

way, two of those unknowns are now known. Now we have just one left.

What will happen with written and the EU. This Brexit. Are investors

starting to digest the fact that Britain could leave? There appears

to be a high chance of return leaving the EU rather than staying

the way things are at the moment. Unfortunately, one of the things we

have wrong at the moment with polls is they aren't accurate. We don't

know what will be decided. I have my own personal opinion about what will

happen on that date but ultimately it is just an opinion. I think

Britain will choose to stay. It is the younger generation that will

decide what on that day. When I talk to the younger generations, like my

children, they are more likely to want to stay in the EU rather than

to leave. From now until then, how should investors manage their

portfolios? Sit tight with their assets? Or go into cash? Going into

cash is the wrong thing to do. Go into bonds. Stay calm. Don't be

affected by what is happening. Ride the volatility? Not just that but

understand what you are sitting in. If you buy shares in a company and

the company is doing fine, what are you worried about? Stay calm and

don't worry. For three decades, China has been the world's factory,

manufacturing has turned it into the world's second-largest economy. But

growth is stagnating and they will need to innovate to keep growing.

Can they thrive on the mainland? As part of our series, we report from

Beijing. Early morning at the officers in Beijing. -- offices. The

next generation of China's army of workers, more Silicon Valley than

production. They have decided to design a new kind of Chinese

company, one that wants to go global from the start. Cheetah used to make

mobile developer software, but now it makes games. It has 350 million

monthly users. Just like Facebook. American companies are not working

as hard as us. It isn't because they have the leading technologies, it is

because of the way they think. We valued knowledge and hard work, they

value direction and vision. That is when I figured we needed a bigger

goal, to go global. That is part of their plan. In 2006, Beijing

announced a new vision for the future, that in 2020, China will

transform into an innovative society. By 2050 it will be a

world-class leader in science and technology. Ambitious plans. But

this country certainly has the political will and the money to do

this. But can this sort of top down innovation work? It is a debate this

person gets drawn into a lot. Breakthrough innovation will be

difficult. The Chinese education system has improved. But it is still

focused now on helping with the drills that make you good in

building something and not so good in breaking the mould. But change is

coming in small but significant way the. In this education laboratory,

Lego and a child foundation teach a child to do, not by rote education.

It may still be in its early stages but there is no shortage of

ambition. And Chinese companies are quick studies. And you can catch

more of China's most innovative companies on Talking Business at

these times on your screen right here on BBC World News. More

business news. Shanghai theme park opened its gates to great fanfare on

Thursday. There is Mickey Mouse and Minnie mouse. Thousands of fans

poured through the front gates. This is not Disney's first in China. One

opened a decade ago. But its numbers have been dwindling. We found out

why. Until this week, this was the only place characters like Mickey

Mouse could greet fans on Chinese soil. But even before the

competition opened in Shanghai, business here was far from booming.

The number of tourists from the mainland has fallen in line with the

economic slowdown. Last year there was 6.8 million visitors. A fall of

nearly 10% from the year before, largely because of absent Chinese

tourists. That contributed to a loss of nearly 20 million US dollars for

the whole year. To cut costs, they shared just over 100 jobs in the

past few months. But it is fighting back. -- shed. Executives at the

Hong Kong theme park launched several new attractions and had some

discounts. TRANSLATION: Mainland China is such a big market. Our

company in the US also has two in parks in the one country. It is big

enough so we are afraid. Still, there is no doubt the market has

just got that little bit tighter. The Shanghai opening is likely to

effect business, they say, in Hong Kong. We expect this year, with the

slowdown in the mainland market, we will, our tourism arriving numbers,

will also slow down. But it will be partially compensated by arrivals

from the other markets in the region. But, obviously, we have to

put in a lot more work to be able to face the competition. The tourism

board is stepping up marketing campaigns in neighbouring countries

and north and South East Asia. They hope two Disney parks in China is

not one too many. BBC News, Hong Kong. Several big names in the

gaming industry in the past returning for another bite at the

cherry in E3 Games Expo. The producer of one remastered title,

Final Fantasy XII says the process is not as easy as it seems. Welcome

to the madhouse! DUBSTEP MUSIC. How do you decide how much to change

when you are remastering a game? TRANSLATION: You want to be careful

about making too many changes in the graphics. It is already well

received. We don't want to make it worse. But we also want to be

advantage of the better specs of the next generation platform. When you

remastered a game you already have the assets and the story written so

is this an easy way for the studio to make money? TRANSLATION: Not

really. It isn't that easy. Of course, the assets have been used

from the earlier title but you can see there has been as much that went

into this one as went into the original. Thank you so much for

investors your time with us. -- investing. I am Rico