:00:00. > :00:00.the United Kingdom. Now on BBC News, all
:00:00. > :00:18.all the latest business use live from Singapore `` news.
:00:19. > :00:21.Ali Babar is set for its biggest share sale in US history with hopes
:00:22. > :00:28.of raising $24 billion from its stock `` Alibaba. Crackdown on
:00:29. > :00:35.corruption in China hits mooncake sales ahead of the mid Autumn
:00:36. > :00:40.Festival. Thank you for joining us for this
:00:41. > :00:44.addition of Asia Business Report. I am Rico Hizon. We have talked about
:00:45. > :00:48.this massive stock offering four months and now it has finally
:00:49. > :00:52.happened. China's e`commerce giant Alibaba is taking its shares on the
:00:53. > :00:59.road to attract investors in a bid to raise $24 billion. How will the
:01:00. > :01:04.companies that? I spoke earlier with an economist from the graduate
:01:05. > :01:09.School in Beijing, where the CEO of Alibaba studied. The situation is
:01:10. > :01:15.different in China from the US. What they have done successfully in China
:01:16. > :01:21.might not be transferred easily into the US. Why not? Chinese people for
:01:22. > :01:29.example want something cheap, so that is the foundation. You have
:01:30. > :01:35.stuff that might not be real, might not be authentic, but sells for a
:01:36. > :01:42.cheap price, so that business model I don't think would fly in the US.
:01:43. > :01:47.Do you think the success of Jack Moss' leadership and the
:01:48. > :01:56.entrepreneurial acumen in China will be successful in a US business best
:01:57. > :02:01.? It might not be possible but that doesn't matter because the value of
:02:02. > :02:08.Alibaba is based on their performance and their status in
:02:09. > :02:15.China `` business? It is worth the IPO valuation that is proposed. What
:02:16. > :02:22.will be the long`term strategy outside China? As he tries to
:02:23. > :02:25.conquer the Western markets? The long`term strategy of course is to
:02:26. > :02:33.be the award leading .com company. There is no question. Jack Meagher
:02:34. > :02:39.is very patient and realistic about that part of the strategy `` dot com
:02:40. > :02:42.company. It will be step`by`step. The focus will still be in China in
:02:43. > :02:45.the next few years but they will test the water in other leading
:02:46. > :02:54.countries such as the US. In other news, the Japanese online retail
:02:55. > :03:01.giant Racutin, is in talk to buy eBay. If the sales close, it will be
:03:02. > :03:05.the company's fifth major overseas investment in the last year ``
:03:06. > :03:11.Rakuten. The acquisition price for the majority stake is said to be
:03:12. > :03:15.about $950 million. Revised date from Japan shows the economy shrank
:03:16. > :03:19.by 7.1% in the three months to June from the previous quarter in more
:03:20. > :03:24.than expected. There are concerns about the impact of sales tax hike
:03:25. > :03:28.in April. The contraction was the biggest since early 2009 when the
:03:29. > :03:33.global financial crisis hit Japan's exports and output.
:03:34. > :03:38.It is six months since Malaysia Airlines flight 370 disappeared. In
:03:39. > :03:43.addition to a human tragedy, it has had a major impact on Malaysia's
:03:44. > :03:47.tourism industry. Until this year, the tourism sector experienced
:03:48. > :03:52.significant and sustained growth. Last year, the nation had 25 million
:03:53. > :03:56.visitors who collectively brought in about $25 billion. This year hasn't
:03:57. > :04:02.been so good. Our correspondent reports.
:04:03. > :04:05.Here in Kuala Lumpur international airport the number of Chinese
:04:06. > :04:08.tourists walking through this a rival door behind me has dropped
:04:09. > :04:13.significantly in the past few months. `` arrival. That is because
:04:14. > :04:17.they have shunned Malaysia following the mysterious disappearance of
:04:18. > :04:22.flight MH370 in March. More than half the passengers on board the
:04:23. > :04:26.flight were from the mainland. As the search went on, and no plane was
:04:27. > :04:33.found, and no answers were given, the shock and grief turned to anger.
:04:34. > :04:37.Both travel operators and even celebrities call for a boycott of
:04:38. > :04:42.Malaysia while they were even street protests in Beijing. `` there.
:04:43. > :04:46.Visitor numbers to Malaysia plummeted. In the first five month
:04:47. > :04:51.of this year, Chinese rivals to Malaysia fell by 7% for Malaysia
:04:52. > :04:56.Airlines, they saw bookings by Chinese tourists plummet by 60% in
:04:57. > :05:01.the weeks following the plane's disappearance `` Chinese arrivals. A
:05:02. > :05:03.spate of kidnappings of Chinese nationals on the east coast of
:05:04. > :05:09.Malaysia in an area famous for the resorts made it worse. Airlines are
:05:10. > :05:12.offering hefty discounts to attract Chinese tourists back to Malaysia
:05:13. > :05:24.but with MH370 still missing, it will be a big challenge.
:05:25. > :05:29.Earlier, I asked a spokesman from end our analytics when we can expect
:05:30. > :05:39.this drop in tourism to turn around. People understand this was a very
:05:40. > :05:44.unique experience with MH370 and MH 70 `` Endau Analytics. We have seen
:05:45. > :05:50.more people from China, India, elsewhere in Asia, indeed from
:05:51. > :05:56.Europe, coming here in numbers already `` MH17. If you do business
:05:57. > :06:00.in Asia you will probably be familiar with the mooncake. It is a
:06:01. > :06:07.popular gift and symbol of building trust and friendship and goes on
:06:08. > :06:09.sale once a year. That is for the day's mid Autumn Festival. The
:06:10. > :06:14.multi`million dollar industry takes a hit this year because China has
:06:15. > :06:17.banned public money being spent on them. Our correspondent went to find
:06:18. > :06:22.out what the fuss is all about. Traditionally, mooncakes are sold in
:06:23. > :06:25.the weeks leading up to the mid Autumn Festival as a holiday treat
:06:26. > :06:29.but they have also become an important part in the way business
:06:30. > :06:32.is done in many countries in Asia. Look at this department store in
:06:33. > :06:40.Singapore. The entire floor is devoted to them and they are selling
:06:41. > :06:50.like hotcakes. We have about 3`10% in growth on today's sales for this
:06:51. > :06:54.year. It has been fantastic. There are nearly 60 brands on sale. Even
:06:55. > :07:00.gold dusted mooncakes, which have become difficult to find in the
:07:01. > :07:06.world's biggest market, China. For years, Chinese factories like this
:07:07. > :07:09.one have worked overtime to meet the demand for the pastry. The Chinese
:07:10. > :07:14.president crackdown on corruption has even taken aim at the humble
:07:15. > :07:17.mooncake. That's because the luxury varieties can represent a blurring
:07:18. > :07:22.of the line between a gift and a bride. As a result, sales by Chinese
:07:23. > :07:28.manufacturers have been slashed in half from last year 's levels ``
:07:29. > :07:31.bribe. That's not stopping producers like this woman, whose bakery in
:07:32. > :07:36.Singapore has only been making mooncakes for two years. We are
:07:37. > :07:40.looking to expand into South East Asia despite the fact that in China
:07:41. > :07:45.is falling in sales, we are open to going there. Until then, she has no
:07:46. > :07:53.shortage of buyers here. With many of these brands selling out well
:07:54. > :07:55.ahead of today's Mid Autumn Festival.
:07:56. > :07:59.Innovation isn't a word people usually used to describe China. Off
:08:00. > :08:04.and it is associated with cheap knockoffs and back raking
:08:05. > :08:10.sweatshops. One entrepreneur is trying to change that perception. In
:08:11. > :08:14.the latest instalment of our my business Asia series, we speak with
:08:15. > :08:16.the woman about her firm, a Beijing `based educational company with a
:08:17. > :08:31.different approach to teaching young people.
:08:32. > :08:37.I am from Beijing makers space. I found it a cutting`edge technology
:08:38. > :08:41.company for kids one year ago, it is called Creatica. We mainly provide
:08:42. > :08:50.technology, such as 3D printing, laser cutting, soft circuits, coding
:08:51. > :08:57.for web. At Creatica, we aren't only a content supplier. We design a
:08:58. > :09:04.curriculum to help them deliver thinking, passion and ideas to kids.
:09:05. > :09:10.In China, because there are people who are motivated but don't have the
:09:11. > :09:16.platform, we played a very important role in working as a bridge between
:09:17. > :09:25.makers, societies, community and between kids. At this market in
:09:26. > :09:31.China, the Dell make it is very big. However, in the beginning, I wasn't
:09:32. > :09:35.very confident `` it is very big. We don't have a big budget for the
:09:36. > :09:40.commercial advertisements, so we basically are based on word of
:09:41. > :09:46.mouth. In China, it is common for business to copy each other. So, we
:09:47. > :09:54.have to constantly make new curriculum and keep innovating. At
:09:55. > :09:59.the very beginning, the first people who joined us were privileged
:10:00. > :10:05.families in China. Now, we are very popular with parents who even fly
:10:06. > :10:11.from other cities to come here. They were super excited because they had
:10:12. > :10:15.never seen sparkles in their kid's eyes and they are excited that China
:10:16. > :10:19.has something like this. Let's have a look at the markets and
:10:20. > :10:23.Asian shares are off to a cautious start on Monday as investors
:10:24. > :10:28.digestive Wall Street gains and the weaker than expected jobs report.
:10:29. > :10:32.You have Japan and Hong Kong in positive territory only slightly,
:10:33. > :10:35.but Australia is down by 16.5. Thank you so much for investing your time
:10:36. > :10:47.with us. A Rico Hizon. Goodbye for now. `` I am Rico Hizon.
:10:48. > :10:50.Hello. You are watching BBC News. President Obama says he will
:10:51. > :10:55.announce his plan to deal with Islamic State jihadis. Malaysia mark
:10:56. > :10:56.six months since the disappearance of