19/09/2016 Asia Business Report

Now on BBC News all the latest business news live from Singapore.

This industry has never been easy. It hasn't been easy in the time I

have been in charge and it wasn't easy for my predecessor and not my

successor. He tells me it is still tough but they are stronger. The

Bank for International Settlements something alarm on Chinese banking

sector. Work on the aged business report. --

Asia Business Report. Two years ago GSK was found guilty of bribing

doctors. The company now claims to have done more to improve

compliance. Next year, Sir Andrew Witty will retire and they say

between now and then, they will make medicines affordable.

We think the right, responsible responses to have tiered structure.

We think that works pretty well and that has allowed us to go into a

substantial working market business. And in China, despite the

challenges, we are seeing our business return to growth and it is

an area we remain off domestic. -- optimistic. Increasing access to

medicine for the Chinese people. What might have be have the levels

improved? We have aimed to refocus the business. We see the whole

market place has slowed down. I fully expect that we will have a

competitive performance. Are you confident that the measures and

policies you have in place will not see a repeat of the scandal? It's

impossible to Darren T perfection when you are operating in over 100

countries that make guaranteed. -- countries. Guaranteed. We have had a

long time and we continue strengthen. You are here and

Singapore speaking to a lot of your Asian counterparts, people in other

companies, what have they been asking you about Brexit? No change

of any rules taking place. Nothing has happened in the real world.

There is a lot of talk and uncertainty. For a company like

GlaxoSmithKline, nothing has changed. It is unlikely anything

will change for a few more years. When that process begins and when it

concludes, the areas we are most interested in and most impacted is

regulatory. What will the UK's relationship be? Will bogey a new

regulation, more regulation? -- will there be. We are interested in ideas

around that. We looking forward to seeing the specifics come out. The

second big question which is the same for everybody is will we be in

the single market in any way, shape or form? We're working on the

assumption that we are not and we are looking at something which is

more like a WTO environment with FTA's rather than the continuation

of the single market. That may be wrong but that is our working

hypothesis. Cheap executive of GlaxoSmithKline. -- chief executive.

China's credit to GDP gap hit 30.1 in the first quarter in 2016. That

has tripled the level the bank considers to be a potential danger.

Is china's financial system in trouble? I spoke to David quote.

The thing about China is we can do the numbercrunching. But ultimately,

we are talking about China. -- that retreat. China controls everything.

As far as China is concerned, they owned the banks anyway. It is a

banking crisis, but China will bail them out. We know that but according

to the IMF, there is about $1.3 trillion here that is potentially

out of risk of default. So even if China bails out its banks, if they

indeed get into lots of trouble, what impact will it have on China's

economy? That is a wonderful point. What I think the BIS is alluding to

is the banks are lending money to the state owned enterprises but it's

not really driving the economic droves that it could. It means that

it is pouring money into enterprises and businesses that are not really

that productive. Really, it has to stop doing that. Ultimately, it will

run out of money. We go back to the first point, it cannot run out of

money because we are talking about China and this is communism and so

simply, all that will happen is the Chinese government will say, right,

the banks are in trouble, we will bail them out. Why is every body so

worried? We know China is a global engine of growth, it is Asia's

largest economy. Any impact on what happens they will have repacked --

repercussions elsewhere. How might the region be impacted? It could be

infected -- affected. We will get house price data later in the week.

The last day today came out shows that new house price growth in China

was rising at about. Some of the major cities like Shanghai and

Beijing were rising at 20% per year. What China is doing, ultimately, is

a saint to the banks that they will cut the amount of money that they

need to keep the reserve. They lend the money to consumers and consumers

go out and spend it on new property. They are going to need furniture and

things so that is driving the growth that China has. Should we be

worried? Up to a point I think we should. Again, I go back and

distress the major point which is we are talking about Communist state

that is in control of everything. David Kuo.

Singapore's High Court has granted a reprieve to the shipping giant

Hianjing allowing them to sail in without being impounded. There have

been refusals to let them dock because they were worried they would

not get paid. -- Hianjin. Hianjin is a giant, a family of a

conglomerate peculiar to the country. It is not the only one in

difficulty. Prosecutors are hoping to end their long investigation into

bribery allegations against another group by summoning its chairman this

week. Is there a big problem with the system itself? Are warning that

the report contains lush photography.

They are everywhere in South Korea. Take this place. Korea University.

This unsung Memorial Hall just there. -- Samsung. LG, they felt

real -- central to the South Korean way of doing business. Three of them

are in focus at the moment. There has been apologies for fuel --

feuding amongst the family. Lotte. And also at Samsung, a battery that

might catch fire. And at Hianjin, there was an apology for his

daughter who turned on a customer who served nuts the wrong way. --

flight attendant. Is there a problem? There are lots of problems.

They do not listen to their shareholders. When it comes to

appointing top management many Chebos are very powerful. It will

slow down but it is prosperous. Chebos have served Korea very well.

Chebos are doing very well that they may not be doing well in the future.

With the symptoms of that. They are operating other things in the

country. The labour, subcontractors, the consumers that have to pay

higher prices. Students dream of working for them but every scandal

of difficulty raises the question again and aloud are. Are they

outdated? There has been a snag in the opening

-- opening of the equities.