10/12/2013 Asia Business Report

kill. Adebolajo and another man deny murder. Now on BBC News all the

latest business news live from Singapore.

Converting savers to spend as ` china Works to rebalance the

economy. The third time is a charm ` a share offer in Hong Kong aiming to

raise $3 billion. Welcome. We start in China where efforts to rebalance

the economy will be examined again in order to maintain rapid economic

growth, the government wants to move away from manufacturing and

encourage people to spend more. The trouble is, growth in exports is

strong but growth in imports is not what they hoped. Retail sales data

will be pored over. How will a nation of savers gain the confidence

to start spending? In China, the debate is no longer just about the

speed of economic growth, it is also about the type of growth. Leaders

want to boost start domestic consumption and relaxed reliance on

export and government investment. The problem they may face is that

China is a nation of savers rather than expend as. They save about one

third of their disposable income. They want to bust of plan their

wallets and go out and spend. It sounds like a lot of fun but many

people here are deeply cautious. people here are deeply cautious

TRANSLATION: From ancient times, people here are deeply cautious.

TRANSLATION: From ancient times the TRANSLATION: From ancient times, the

Chinese have been deeply afraid of having no money. I think most people

say to raise their children and to take care of themselves when they

get old. If you do not save, who escaped by a house for your child,

what would you do if you get sick? You will be in real trouble if you

have not saved enough and you become ill. In order to change that, the

government will have to spend more money in providing pensions as well

as a government health insurance. With a billion plus people, that is

going to cost a lot of money and take a long time. And even then, old

habits die hard. Saving remains part of the DNA here. The Chinese banks

have been among the most profitable in the world. One bank will kick off

it shares ahead of its listing next week. It is a big banks third

attempt to list there and it is forecast to raise an eye watering

$2.8 billion. China ever bright ` at mid`size, state owned based in

Beijing. One of 800 branches in the country. It is raising funds to

comply with new rules that require writ to hold more money on its looks

against a background of rising loan defaults in China. At a press

conference in Hong Kong, the bank 's executives have assured shareholders

about its growth model. TRANSLATION: Business is concentrated in two

areas ` those who understand us will know we are concentrating on China's

most developed areas. We have started to develop our business in

inland China. Ever bright has reportedly tried to raise money here

in Hong Kong several times before and has had to cancel those plans

because of weak investment demand. Clearly, it is hoping the third time

is of the charm. The bank is listed in Shanghai. Its successful 2010

public offering came just a few years after the Beijing government

gave ever bright billions of dollars to erase from its books. Now it is

hoping to replicate the listing in Hong Kong. The bank has lined up a

number of big names ` cornerstone investors ` in order to give smaller

shareholders more confidence. How worried should investors be about

the rise in defaults on loans in China? An expert mapped out how far

Chinese banks have come. Ten years ago there was a consumer lending in

China. Despite what is being said, the Chinese banks have come a long

long way. We have 320 million credit cards in China. That is largely what

has given the profitability of the banks as well. It is important to

put these numbers in some respect it because when you look at default

rate in other parts of the world, it is slightly less than 1% and that is

a fairly small number can parable to what you see in other parts of the

world where it could easily have been two or three times that. What

has come out of what we see now it is at trend `8/4 in a row ` eight

points all going up, that is pretty much a trend. If lending does a

slow, or we're going to see that percentage rate more rapidly. This

second point, the housing marker and inflation and the repercussions of

which to sing mortgage lending and repayment, more importantly, and how

might that trickle down to the rest of the economy. If that loads to

continue, what will the Chinese government do? Began to see them

bail banks out? `` are we going to see them. It is always possible. It

see them. It is always possible It is the matter of speculation. The

Chinese government will need to do something because if it truly is a

problem, is to be said if America sneezed the world catches a cold but

now at the same is true of the Chinese. Anything that distracts the

banks will slows this transition to consumer demand you referred to in

China, will not be a good thing for the world. The recent move to

liberalise? It is good. A lot of probability in Chinese banks is due

to larger spreads of interest banks. It will mean more competition. It

will put more emphasis on risk management and skills. India's

foreign investment regulator has deferred a decision on Vodafone

wanted to take full control. The regulator said it postponed the

decision because it is not received approval from the interior ministry.

The US government has sold off its remaining shares in General Motors,

resulting in a $10 billion loss. The government bailed out the automaker

during the 2008 financial crisis. Treasury secretary said the rescue

was necessary to save a million jobs and prevented the auto industry from

collapsing. The ABS plastic at 58,000 jobs. The parent of

headmaster says the job cuts will also lead to a consolidation of its

site across Germany, France, Spain and the UK. A redundancy programme

will be phased over a three`year period. For more on all those

stories, log on to our website. When a typhoon high`end `` typhoon

Haiyan. That risky potential for food aid. Time to clear the line, to

make sure people get rice into this field. It is a brace against time.

They need to get the seeds into the ground immediately. It is a brace

against time. If they do not, they may not have a harvest for ten

months time. If you give them food aid, it will only feed them for a

week, if you are able to allow them to grow their food, it will mean

they can feed their families for a year and for ever once they are back

on their feet. People have been immobilised and paid to make sure

these irrigation channels are cleared. The typhoon, when it came,

through a lot of debris through this area and into the irrigation

channels. It is important that people have some sort of control

over their lives. That there are given some sort of choice. Yes, we

can give people help but what people want is to be in control. It gives

them dignity. These irrigation channels will be opened up and at

that point, it the seeds have to be in the ground. If we did not do it

in the time we have, these people will lose the chance of growing rice

this season and that will have a big effect on their ability to feed

their family and also on them feeding other as well. The one sack

of rice we give people, they can grow 80 sacks of rice for selling

and eating. That ends of this edition of the Asia Business Report.

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