20/01/2014 Asia Business Report

charged in connection with the death of her son. Time now for Asian

business report. The figures are out. It is official

that China's economy is slowing down. We take a look at the

implications. The bank account for every adult in the country. India's

bold ambitions. Welcome to Asia Business Report. The news we have

been waiting for. The figures are now out. Fresh data shows the world

's second-largest economy expanded by 7.7% in the final three months of

last year as opposed to the same period the previous year 2012. They

exceeded the target of 7.5%, but it is the worst they have seen 14

years. I was told earlier why the slowdown is necessary for the world

's second-largest economy. This is a positive development. They need to

slow down. There is an ongoing structural slowdown in our view that

the leadership and government needs to accommodate. We expected growth

in the fourth quarter. People need to get used to a new way of thinking

about Chinese growth. It will be slowing down in the coming years. It

won't be a straight line throw -- slowdown. In our view, we will see a

continued gradual deceleration of the next decade. Is that a good

thing? Will policymakers be happy? There is a difficult line they are

trying to trade. The leadership thinks they need a certain amount of

growth to keep employment up. The growth target has always been about

making sure there has been enough employment to keep employment

robust. As you change models, the shift towards service. They can have

robust employment growth, although growth will slow down. It happens

because services are inherently less productive. Employment will keep up.

They may not be pleased about the number. The fact that they are

accommodating the slowdown is a good thing. Speaking to me from a very

windy Beijing. They need growth to provide prosperity as well. To

secure long-term growth, the economy needs to change. One held place is

the new free-trade zone which has opened in Shanghai for months ago.

Not much appears to have happened. The old warehouses and factories are

still here just as they were four months ago when this plot of land

was formally opened as part of the free trade zone. Behind the scenes,

there has been a flurry of activity. More than 40 business consultancies

like this one have been set up to help thousands of interested

companies register inside the zone. Rents have doubled, and there is a

sense of idealism and adventure. China is entering a new era. The

free-trade zone could be a connecting point between China and

the world. As a young man, my dream is based on my country 's dream. I

hope to achieve something here. On the edge of the free-trade zone

there is a reminder of China's existing model of growth based on

energy intensive and heavy industry. The zone is supposed to be all about

moving to a new model. Creating the conditions to encourage financial

and service sector companies that are vital to a consumer economy.

Despite the high hopes, four months after the signs went up, some are

beginning to wonder if it will have anything like a significant impact

on growth as was hoped. Policymakers appear to be moving cautiously. Some

of the boulder promised measures like full currency convertibility

and interest rate liberalisation remain aspirational rather than

reality. There is no shortage of pioneering companies hoping to get

themselves a foothold. Whether this really is the gateway to China's

future, the next big leap forward in economic reform, well, there is not

yet enough detail. Now for an ambitious plan in India.

Banking is a priority. The plan has been put forward to give every adult

is a bank account by 2016. The 60 years old and has never had

bank account. He sells vegetables to make a living from the shop just

outside his home. It is hard for him to save much. Whatever he says is

stashed away in his home. TRANSLATION: The bank is about an

hour 's walk away. There are some private lenders slightly closer, but

I can't trust them with my money. If there was a government bank closer,

I would deposit there. It is not worth it right now. This is a suburb

of the commercial capital. Many people here don't have bank accounts

because there isn't a bank branch that is close enough. Around a third

of the population doesn't have access to bank accounts. There is no

proposal to change that and bring more people from lower income

households like these into the formal financial system. An expert

panel set up by the reserve bank of India has recommended special banks

opened up that are focused on those earning low wages. By 2016, every

adult in India should have a bank account. It is a big target. The

country is home to more than 1.2 billion people. In 2010, India

launched a massive scheme to give every person a unique identification

number. It's a process that is still under way, and likely to completed

next year. The bank panel believes that if bankcards are linked to

this, 2016 may be an achievable goal. To really get people to use

these accounts, thousands of new bank branches will also need to be

opened up. If customers are only depositing very small amounts, there

are questions about whether these branches would be financially

viable. There are ambitious goals, but achieving them is key for

equitable growth in the country. We've already talked about slowdown

in China's growth which has made investors look to other parts of

Asia. One area is the world of art. Southeast Asia is largest art show

wrapped up. As we found out, artist to seeing their work exchanging

hands at record prices. I am at the largest art fair with over 150

galleries from all around the world showcasing art as diverse as art

installations and more traditional forms such as painting and

sculpture. The question for a would-be art collector or investor

isn't wood so cheap bewildering amount of choice, where do you

start? It's a question I put to an avid Singaporean collector of

south-east Asian art. I have collected for many years, and

somehow revolve around south-east Asian art simply because it is the

territory I grew up. It is accessible and eight have known the

artists through the years. Southeast Asia is still in its infancy as far

as value is concerned. It is not a detriment, but we know this region

of growth will get wealthier. Art will surely appreciate. He would be

pleased with what is on offer. Art from Southeast Asia dominates the

stage that with Indonesian pieces like this reigning bad taking centre

stage. Record-breaking prices has overshadowed offerings from

elsewhere in Asia. A projected slowdown and crack down on increased

spending may lead to a shift in interest. The Asian chairman of

options agrees. We had a great year last year. It was a record year for

sales. We had growth of over 30%. One success story was south-east

Asian art which has seen a lot of interest and new interest regionally

and internationally as well. As a result not only are so growth of the

economy, but also as the economy grows and Asia is part of

everybody's mind set, there is a lot of international interest in what

goes on in Asia. Investors are taking a serious look at art from

this part of the world. An interest that was reflected on the show for

its first night. The markets were at in a hesitant to move after last

night 's GDP figures. The trading is a bit thin because

Equity is lacking. That is the way it is looking at the moment. This is

the last edition from me. Thanks for joining us.

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