10/12/2013 Asia Business Report

Allah' and that God commanded him to kill. Adebolajo and another man deny

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

Singapore. Converting savers to spending `

China Works to rebalance the economy. Will the latest methods it

yield results? Fertile is the charm ` Everbright offers a share to Hong

Kong. Aiming to raise billions of dollars. Welcome. We start in China

where efforts to rebalance the economy will be examined again today

in order to maintain rapid economic growth, the government wants to move

away from manufacturing and exports and encourage people to spend more.

The trouble is, growth in exports is a strong growth in imports is not

what they had hoped. Today, more 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 domestic consumption

so they are less reliant on exports and government investment. The

problem they face is that China is a nation of savers rather than big

spenders. They save about one third of their disposable income. The

government wants them to smash their piggy banks and go out and spend. It

sounds like a lot of fun but many people here are deeply cautious

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

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

most people save to raise their children and to take care of

themselves when they are old. If not, who will buy house for your

child? What would you do when you are sick? If you have a serious

illness he will be in trouble if you have not saved enough. House of

consumption is around half that of America. The government will have to

spend more money providing pension as well as government health

insurance. But with a billion plus people, that is going to cost a lot

of money and take a long time. Even then, old habits die hard. Saving

becomes part of the national DNA. Chinese banks have been the most

profitable in the world and today, Everbright bank will kick off its

listing. It is its third attempt to list in Hong Kong. An eye watering

2.8 billion dollars. China Everbright ` at mid`sized, state

owned lender based in Beijing. This is one of more than 800 branches

around the country. It wants to comply to new rules that will need

it to hold more money against the background of rising loan defaults

in China. At a press conference in Hong Kong, executives have assured

potential shareholders about its growth model. TRANSLATION: Our

business is concentrated on two data. We serve China's most

economically developed areas but in the past few years we have started

to develop our business in inland China in line with national rules.

Everbright has tried to raise money here in Hong Kong several times

before but has had to cancel those plants because of lack of investment

demand. It is hoping for times and charm. Its successful 2010 initial

public offering came a few years after the Beijing government gave it

billions of dollars to erase bad loans from its books. Now it is

hoping to replicate the listings success in Hong Kong. But deadlines

are still a worry. The bank has lined up a number of big names `

cornerstone investors ` to give smaller investors more confidence.

How worried should investors be about the rise in default loans of

Chinese banks? We mapped out how far Chinese banks have come. Ten years

ago, there was not lending in China. Despite what is being said, the

banks have come a long way. They have 320 million credit cards in

China. That has been what has led the profitability of the banks. It

is important for the numbers in perspective. You look at default

rates in other parts of the world ` less than 1% ` that is a small

number, especially comparator bull to what you see on consumer lending

portfolios in other parts of the world where it could be two or three

times that. There are two things that need to come out of what we are

seeing at the moment ` firstly, the trend. Eight quarters in a row

stopped the worry is that 8`point all going up is a trend as the

economy... If lending does a slow all we see that percentage Wrobel

rapidly, then I think the second point is, the housing marker and the

inflation and mortgage lending and repayment and how that my report out

across the rest of the economy. If bad loans continue, what can the

Chinese government to? Will they bail banks out? It is always

possible, of course. It is a matter of speculation. In the broader

terms, the Chinese government will need to do something because if it

truly is a problem, then... It is to be said if America sneezes, the

world catches a cold ` will now it applies to the Chinese as well.

Anything that distracts the banks all slows this transition to

consumer demand that you have referred to in China, will not be a

good thing for world economies. The rise in interest rates? I think it

is good it is good to end on a positive note. A lot of the

credibility has been driven by a large spread of interest rates.

Narrowing that spread it will encourage the banks to peak more. It

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

foreign investment regulator has referred a decision on Vodafone

wanted to take full control of its Indian unit. The regulator said it

postponed the decision as it is not received approval from the Interior

Ministry. Operators are now allowed to fully owned the Indian

businesses. EA has plans to cut 5800 jobs `` EAP yes. Airbus says job

cuts will also lead to consolidation of its site across Germany, France,

Spain and the UK. The redundancy programme will be phased over three

years. The US government has cell. Remaining shares `` sold off

remaining shares of the automaker. Treasury secretary said the rescue

was necessary to save a million jobs. For more on that and other

business headlines from around the world, you can go to our website.

When the typhoon tore through this region, it came at the worst

possible time for rice planters. The reserve potential for a large effect

on prices and thousands of people dependent on food aid. Oxfam is

paying workers to help clear the fields. Time now to clear the land,

to make sure people get rice into these fields. It is a brace against

time. They need to get the seat into the ground immediately, if they do

not get them in by December, they will lose a harvest and they will

not have a harvest till ten months time. They will be without food. If

you enable people to grow their own food, it will feed their families

for a year and for ever once they are back on their feet. People here

have been mobilised and paid to make sure that these irrigation channels

are clear will stop the typhoon, are clear will stop the typhoon,

when it came, through a lot of debris all over this area and into

these irrigation channels. It is really important that people have

some sort of control over their own lives. But there are given some sort

of choice. Think if people goods but what people want is money to be able

to buy the things, it puts them in much more control, it gives dignity.

These irrigation channels will be opened up and at that point, the

seeds have to be in the ground. If we do not do it in the time we have

got, these people will lose the chance of growing rice this season

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

but also on them feeding other people as well because for one sack

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

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

edition of Asia Business Report Thank you for watching.

Headlines: The security forces in Ukraine dismantle some protest camps

in the capital Kiev and raid the party headquarters of the jailed

opposition leader, Yulia Tymoshenko. Villagers in the Central African

Republic are running for their lives and seeking shelter ` French forces

have started to disarm rebels responsible for sectarian violence.

The Work and Pensions Secretary Iain Duncan Smith has admitted that

millions of pounds have been written off on computer systems during the

introduction of universal credit the coalition's major reform of

benefits. Our