:00:00. > :00:00.American company has been warned not to use the UK as a tax haven. Now on
:00:00. > :00:22.BBC News, all the latest business news live from Singapore.
:00:23. > :00:32.Could it be the biggest stock market listing in history? Ali Baba six
:00:33. > :00:36.billions from investors. Could Indonesian coffee become less
:00:37. > :00:43.available to foreigners? Welcome to Asia Business Report. I'm Rico
:00:44. > :00:50.Hizon. Starting with China's Alibaba. It has filed for a share
:00:51. > :00:57.sale in the US, which could make it as much as $15 billion. In initial
:00:58. > :01:01.stages of the filing, it hasn't specified how much stock will be
:01:02. > :01:04.sold or at what price. The online shopping giant operates a network of
:01:05. > :01:10.e`commerce services and brings in more money than us on and eBay
:01:11. > :01:22.combine. But how well known is Alibaba in the US? `` Amazon and
:01:23. > :01:29.eBay. To give you an idea of how much interest it is already
:01:30. > :01:34.building, Yahoo has a 40% stake in Alibaba and investors are buying
:01:35. > :01:36.shares in Yahoo just to have some of its shares in Alibaba. There is
:01:37. > :01:39.already quite a bit of interest, despite the fact that it might not
:01:40. > :01:41.be as well`known and amongst regular kind of investors. The one thing
:01:42. > :01:44.that might hold investors back in the US is the complex web of
:01:45. > :01:52.businesses. That might deter some investors. One merely `` $1 billion,
:01:53. > :01:58.US, is that realistic? It is probably going to be more than that.
:01:59. > :02:00.The $1 billion is really just a placeholder, a number they have to
:02:01. > :02:07.put. But most people believe they can raise anywhere from $15 billion
:02:08. > :02:16.`$20,000,000,000. If they are published that, it would be
:02:17. > :02:20.Facebook's IPO. They decided to file in the US rather than their home
:02:21. > :02:28.base. By? The United States allows for more control. `` why? That's
:02:29. > :02:35.what executives want. Alibaba proposed something different. Their
:02:36. > :02:39.shareholders, 20 members of the executive team, are able to vote on
:02:40. > :02:44.the people who are part of the board. That wasn't going to fly with
:02:45. > :02:47.regulators in Hong Kong. But it's something that was accepted here in
:02:48. > :02:55.big US, which is why they decided to list in New York. A marketplace
:02:56. > :03:08.which facilitates consumer to consumer online shopping now.
:03:09. > :03:20.It is the supreme shopping platform. There is almost nothing you can't
:03:21. > :03:25.buy on it. People call me Lunar Mum on internet. I sell maternity and
:03:26. > :03:31.infant products. It was hard at the beginning. Every day I wouldn't
:03:32. > :03:36.finish before midnight and I had to look after my baby as well. Now I
:03:37. > :03:40.have eight staff, divided into morning and evening ships. I even
:03:41. > :03:49.have customer service and a graphic designer. We chat to customers
:03:50. > :03:54.online before finalising the orders. In the afternoon, we start sorting
:03:55. > :04:04.the goods according to orders. We pack them into parcels for the
:04:05. > :04:08.delivery men. When I started, I made 10,000 yuan every month. Now the
:04:09. > :04:16.income is 40 times that. All young people now shop online. Even older
:04:17. > :04:19.people are joining the trend. The website has transformed my life. I
:04:20. > :04:27.believe its influence is only going to increase. The successful use. The
:04:28. > :04:30.following rate of growth of China's economy is a source of concern for
:04:31. > :04:34.many in the developing nations of Asia.
:04:35. > :04:39.But for countries in Africa, China's investment is still
:04:40. > :04:43.galloping ahead. By 2020, it expects trade with Africa to double to $400
:04:44. > :04:47.billion and Chinese foreign investment is expected to rise to
:04:48. > :04:55.100 Indian dollars. In Abuja, Nigeria, the World Economic Forum is
:04:56. > :05:00.taking place. We report from there. Nigeria is China's third`largest
:05:01. > :05:04.trading partner. Trade volume has increased as there is hardly any
:05:05. > :05:07.household in Nigeria without a product made China, especially at ``
:05:08. > :05:17.electronics. This is coming with huge business delegation. Several
:05:18. > :05:23.bilateral agreements will be signed. There are huge investment here, with
:05:24. > :05:29.interest spanning telecom, aviation and banking, as well as a huge
:05:30. > :05:34.presence in construction. This visit underscores the importance of
:05:35. > :05:35.Nigeria to China and the rising profile of Chinese business
:05:36. > :05:42.activities in Africa's largest economy. The World Economic Forum
:05:43. > :05:47.begins today. There is the risk of it being overshadowed by security
:05:48. > :05:51.concerns. China has started controlling
:05:52. > :05:56.imports of baby milk formula to try to rebuild its dairy industry.
:05:57. > :06:02.Demand for imports soared after a scandal in 2008. But authorities are
:06:03. > :06:08.trying to help local producers claw back market share from suppliers in
:06:09. > :06:11.New Zealand, Australia and Europe by stopping imports from producers who
:06:12. > :06:16.are not registered with them. New Zealand is a major exporter of milk
:06:17. > :06:20.formula to China. Earlier, I spoke to the head of the trade body in
:06:21. > :06:23.Auckland and asks how this will impact their industry. Each year it
:06:24. > :06:30.is about $200 million, New Zealand dollars, of milk formula. This is a
:06:31. > :06:35.rising market for New Zealand because of our free trade agreement
:06:36. > :06:40.that we signed back in 2008. It is part of a market that is growing and
:06:41. > :06:42.part of our market where Ali Young, small, entrepreneurial companies
:06:43. > :06:50.have taken a good share of the market and that market is now at
:06:51. > :06:55.risk. `` our young. Suppliers now have to be approved by mainland
:06:56. > :07:00.authorities. Apparently only 30 suppliers, six other countries, were
:07:01. > :07:07.approved. How could this impact, in terms of production and revenues,
:07:08. > :07:12.the New Zealand baby formula market? What we are going to see is the
:07:13. > :07:19.initial audit covered 13 companies and now we have about eight of those
:07:20. > :07:25.who have passed the globe mark. What we will see is some pressure put on
:07:26. > :07:31.the brand holders. For some reason the Chinese are looking at brands
:07:32. > :07:35.and looking to have Rands reduced, whereas in the New Zealand market I
:07:36. > :07:44.am saying that what they should be doing is looking at the quality of
:07:45. > :07:48.products supplied. `` brands. That will give accountability to
:07:49. > :07:53.consumers in the China market. There is no need to exclude part of our
:07:54. > :07:57.supply chain. If it is breakfast where you are
:07:58. > :08:01.watching, you might have had your first couple of coffee or at least
:08:02. > :08:07.he might be thinking about it. But do you know where it comes from?
:08:08. > :08:11.Indonesia is the world's fourth largest coffee producer and in the
:08:12. > :08:14.past is exported almost all of it. Now, Indonesians are demanding
:08:15. > :08:18.better coffee and that is expected to put a shotgun exports.
:08:19. > :08:25.Afternoon coffee. It is fast becoming Indonesia's pastime. This
:08:26. > :08:28.couple opened this shop last year. She admits business is slow but she
:08:29. > :08:34.is confident that the future is bright. Older generations like my
:08:35. > :08:39.father or uncle, the way they drink coffee, they just drink the popular
:08:40. > :08:46.Indonesian instant coffee or they just put water over the ground
:08:47. > :08:51.coffee and they drink the sediment. Now, the young generation drinks
:08:52. > :08:57.espresso, Pacino. This is where all of that coffee comes from. ``
:08:58. > :09:01.cappuccino. These are unprocessed coffee beans. In the past,
:09:02. > :09:05.Indonesian farmers would pick the beans indiscriminately. It is faster
:09:06. > :09:12.but the result is a lower quality coffee. Now, it pays to pick only
:09:13. > :09:16.the best beans. This man has been a coffee farmer for more than 20
:09:17. > :09:20.years. He first learned about the plant on his grandmother's farm.
:09:21. > :09:25.But, until recently, nobody taught him how to produce high`quality
:09:26. > :09:31.coffee. Now he is small `` he is all smiles while picking the best beans.
:09:32. > :09:33.TRANSLATION: I used to sell one kilogram of regular quality coffee
:09:34. > :09:41.beans. For the superior quality, people are willing to pay almost
:09:42. > :09:46.three times the price. The best Indonesian copy used to be mainly
:09:47. > :09:51.for exports. This Di Resta sells special coffee, the highest in the
:09:52. > :09:59.trade, locally and overseas. `` this exporter. The majority will be
:10:00. > :10:05.local. Locals will consume it. Mid to upper class. We do not expect
:10:06. > :10:18.foreigners, because our biggest market is our growing need
:10:19. > :10:23.upper`class. `` mid. But the bulk of Indonesian copy still has to go
:10:24. > :10:25.overseas for some time as it had enough demand in the country. But
:10:26. > :10:31.farmers are increasingly setting the price for the popular commodity.
:10:32. > :10:39.Thank you for investing your time with us. The sport is up next.
:10:40. > :10:51.The top stories this hour. Eight more schoolgirls have been abducted
:10:52. > :10:52.in Nigeria. The US is sending a team