05/12/2016 Asia Business Report


05/12/2016

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

:00:00.:00:11.

The connection between Hong Kong and the stock exchanges is now live.

:00:12.:00:24.

Will it be a success or a risk? A shock resignation. New Zealand's

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Prime Minister is stepping down after eight years in power. It is a

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Monday. Glad you could join us with this addition of Asia Business

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Report. It is live. The long-awaited connection between the Hong Kong and

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Shenzhen stock exchange has just started. Foreign investors can

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foreign investors can now buy properties listed in changing. For

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the latest, we are joined by the Hong Kong stock exchange. Looks busy

:01:10.:01:17.

there. It is of course an extension of the Hong Kong Shanghai connect. A

:01:18.:01:21.

message from Beijing that the Chinese markets are gradually

:01:22.:01:27.

opening? , that's right. It's very busy here today. In just a few

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seconds ago, they rang an gong to symbolise the open of Duchenne Jen

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and Hong Kong stock exchange connect. -- Shenzhen. A lot of these

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are considered different from the stocks available from the Shanghai

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stock market because Duchenne Jen and stock market is Stec Heavey. --

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tech heavy. They are keen to attract foreign investment. They are also

:02:04.:02:05.

keen to internationalise their market. They want to encourage more

:02:06.:02:11.

foreign investment and reach international standards. The MSCI

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index decided not to include Chinese stock because they were worried

:02:19.:02:21.

about access ability issues stop this is going to be seen as a

:02:22.:02:26.

chance, a step, for China to move towards that. Indeed, a significant

:02:27.:02:31.

moment. Atkins see a lot of bubblies flowing around behind you. --I can

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see. Of course, this particular Shenzhen, Hong Kong connect comes at

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a very critical time because we are seeing the Chinese economy slowing

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down. We are seeing a weaker yen and expect it US rate hike. Many people

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think that is why there has been an delay to the launch of the Shenzhen

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stock connect. Some people but it would launch last year and it was

:03:03.:03:05.

delayed because there was a serious market crash in China. A lot of

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people were also expecting it to launch in November but it seems like

:03:10.:03:13.

there was a delay there is well put up many analysts think it was to do

:03:14.:03:18.

with the falling UN. Especially after the election of Trump. Many

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people are worried about capital flight. They thought it might be

:03:22.:03:31.

because China wanted to wait for a few weeks. The launch of the

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Shenzhen Hong Kong stock connect. Let's check on how the Hong Kong and

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Shenzhen markets have opened. As you can see, it is done by one point to

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5%. As for the Hong Kong stock exchange, it is lower by about 75

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points. The sentiment is basically negative after the Italian

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referendum whether no voter one. Moving to New Zealand and the Prime

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Minister John Key is resigning stop he made the surprise announcement

:04:12.:04:15.

meant that are as conference a short time ago saying his family was the

:04:16.:04:20.

main reason he is leaving office. So, far more, let's cross over to

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our correspondence in Auckland. Thank you for joining us. This was a

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surprise to many people and now the big question is, the will take over?

:04:33.:04:39.

Surprise, shock, everybody is dealing with the information at the

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moment. Mr He was doing his press conference and then he sprung it on

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everybody. Nobody saw it coming. Quite unusual, -- Key. His main

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reason is his family. He has had three terms in office and is

:05:00.:05:02.

exhausted and now is the time to move along and let someone else take

:05:03.:05:06.

over the reins. You have to understand, for the next election in

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New Zealand, in one years time. This gives time for the National party to

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get a new leader in and prepare themselves for the next battle. He

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has been one of the most popular prime ministers the country has seen

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and his National party has had popular feedback in the polls. It

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will be an interesting time. Can imagine the opposition parties are

:05:31.:05:33.

finally looking with some kind of hope for the next election. Stepping

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into next week, once it gets confirmed by his party, is ill

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English, his finance minister, who has always been his right-hand man.

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He was the Lacoste. -- Bill. Throughout these years, I have given

:05:45.:06:02.

everything I have two this job in the country I love and cherish. This

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has come at a sacrifice to my family. For my wife, there have been

:06:07.:06:12.

many in nights and weekends spent a loan. Many occasions that were

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important to her that I simply couldn't attend.

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That was Prime Minister John Key explaining why he resigned after

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ages in office. Of course everybody wants to find out with chunky moving

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ahead, stepping down, what will happen to the New Zealand economy

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which is agriculturally dependent -- John Key. He was a very successful

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businessman before he became a minister. Obviously tourism is big

:06:44.:06:49.

in the country and it has overtaken dairy as its primary import. We

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think with the election coming up next year, dairy will still be at

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the forefront of what has been described as a superstar economy.

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Interesting times ahead for New Zealand.

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Moving to developments in India and a cash crunch causing by the

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government's surprise decision to withdraw large banknotes, has seen

:07:19.:07:24.

bartering return to many rural villagers. We are seeing how they

:07:25.:07:29.

are surviving without cash. In other business news, making

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headlines. HSBC is targeting the 3 million consumers as it starts

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issuing credit cards in China from today. It is the first time it has

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done so under its own steam and only two other foreign banks provide

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credit cards in China. A significant proportion of the Chinese population

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doesn't have a credit card and banks offering them will face challenges

:10:01.:10:04.

from mobile payment services. But have a quick look now at the

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markets. It is currently very nervous day, particularly in the

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greater China markets after the Shenzhen markets connect. And also

:10:18.:10:23.

the yes vote in it till it -- in Italy. Thank you so much for

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investing your time with us. Sport Today is up next.

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Italian Prime Minister Matteo Renzi says he is resigning

:10:50.:10:52.

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