08/09/2014 Asia Business Report

the United Kingdom. Now on BBC News, all the latest

business news live from Singapore. Alibaba is set for the biggest US

shares sale in US history, with the hopes of raising $24 billion from

its stock. A crackdown on corruption in China has hit sales ahead of the

midautumn Festival. Thank you for joining us for this

edition of Asia Business Report. I am Rico Hizon.

We have talked about this massive stock offering for months and now it

has finally happened. China's e`commerce giant Alibaba is taking

its shares on the road to attract investors in a bid to raise $24

billion. That is on Monday. It is expected to offer 320 million in

shares, priced between 60 and 66 US dollars. How will the company fair?

I spoke earlier with an economist from the graduate School in Beijing,

where the CEO of Alibaba studied. The situation is different in China

from the US. What they have done successfully in China might not be

transferred easily into the US. Why not? I think Chinese people, for

example, want something cheap, so that is the foundation. You have

stuff that might not be real, might not be authentic, but sells for a

cheap price, so that business model I don't think would fly in the US.

Do you think the success of Jack Moss' leadership and the

entrepreneurial acumen in China will be successful in a US business? It

might not be possible. But that doesn't matter because the value of

Alibaba is based on their performance and their status in

China. Only for that part, it is worth the IPO valuation that is

proposed. In news this hour, China posted its

numbers for the month of August, with a 9.4% rise on the year. It

follows a record surplus in July after the government made similar

initiative is to stop the economy from slowing down. There has been a

rebound in exports. The Japanese online retail giant Rakuten, is in

talks to buy eBay. If the sales close, it will be the company's

fifth major overseas investment in the last year. The acquisition price

for the majority stake is said to be about $950 million.

Revised data from Japan shows the economy shrank by 7.1% in the three

months to are concerns about the impact of

sales tax hike in April. The revised contraction was the biggest since

early 2009 when the global financial crisis hit Japan's exports and

output. It is six months since Malaysia

Airlines flight 370 disappeared. In addition to being a human tragedy,

it has had a major impact on Malaysia's tourism industry. Until

this year, the tourism sector experienced significant and

sustained growth. Last year, the nation had 25 million visitors who

collectively brought in about $25 billion. This year hasn't been so

good. Our correspondent reports. Here in Kuala Lumpur International

airport the number of Chinese tourists walking through this

arrival door behind me has dropped significantly in the past few

months. That is because they have shunned Malaysia following the

mysterious disappearance of flight MH370 in March. More than half the

passengers on board the flight were from the mainland. As the search

went on, and no plane was found, and no answers were given, the shock and

grief turned to anger. Both travel operators and even celebrities

callED for a boycott of Malaysia, while there were even street

protests in Beijing. Visitor numbers to Malaysia plummeted. In the first

five monthS of this year, Chinese arrivals to Malaysia fell by 7%. For

Malaysia Airlines, they saw bookings by Chinese tourists plummet by 60%

in the weeks following the plane's disappearance. Making matters worse,

A spate of kidnappings of Chinese nationals on the east coast of

Malaysia in an area famous for the resorts. Airlines are offering hefty

discounts to attract Chinese tourists back to Malaysia but with

MH370 still missing, it will be a big challenge.

Earlier, I asked a spokesman from Endau Analytics when we can expect

this drop in tourism to turn around. People understand this was a very

unique experience with MH370 and MH17. They understand Malaysia

offers value for money. We have seen more people from China, India,

elsewhere in Asia, indeed from Europe, coming here in numbers

already. If you do business in Asia, you will

probably be familiar with the mooncake. It is a popular gift and

symbol of building trust and friendship and goes on sale once a

year. That is for today's mid Autumn Festival. The multi`million dollar

industry takes a hit this year because China has banned public

money being spent on them. Our correspondent went to find out what

the fuss is all about. Traditionally, mooncakes are sold in

the weeks leading up to the mid Autumn Festival as a holiday treat.

But they have also become an important part in the way business

is done in many countries in Asia. Look at this department store in

Singapore. The entire floor is devoted to them and they are selling

like hotcakes. We have about 3`10% in growth on today's sales for this

year. It has been fantastic. There are nearly 60 brands on sale. Even

gold dusted mooncakes, which have become difficult to find in the

world's biggest market, China. For years, Chinese factories like this

one have worked overtime to meet the demand for the pastry. Demand is

rising. The Chinese president's crackdown on corruption has even

taken aim at the humble mooncake. That's because the luxury varieties

can represent a blurring of the line between a gift and a bribe. As a

result, sales by Chinese manufacturers have been slashed in

half from last year 's levels. That's not stopping producers like

this woman, whose bakery in Singapore has only been making

mooncakes for two years. We are looking to expand into south`east

Asia despite the fact that in China, it is falling in sales, we

are open to going there. Until then, she has no shortage of buyers here.

With many of these brands selling out well ahead of today's Mid Autumn

Festival. Innovation isn't a word people

usually use to describe China. Often it is associated with cheap

knockoffs and back breaking sweatshops. One entrepreneur is

trying to change that perception. In the latest instalment of our My

Business Asia series, we speak with the woman about her firm, a Beijing

`based educational company with a different approach to teaching young

people. I am Joanna. I am from Beijing

Makers Space. I founded a cutting`edge technology company for

kids one year ago, it is called Creatica. We mainly provide

technology, such as 3D printing, laser cutting, soft circuits, coding

for web. At Creatica, we aren't only a content supplier. We design a

curriculum to help mentors deliver thinking, passion and ideas to kids.

In China, because there are people who are motivated but don't have the

platform, we play a very important role in working as a bridge between

makers, societies, community and between kids. At this market in

China, it is very big. However, in the beginning, I wasn't very

confident. We don't have a big budget for the commercial

advertisements, so we basically are based on word of mouth. In China, it

is common for business to copy each other. So, we have to constantly

make a new curriculum and keep innovating. At the very beginning,

the first people who joined us were privileged families in China. Now,

we are very popular with parents who even fly from other cities to come

here. They were super excited because they had never seen sparkles

in their kid's eyes and they are excited that China has something

like this. Let's have a look at the markets and

Asian shares are off to a cautious start on Monday as investors

digestive Wall Street gains and the weaker than expected jobs report.

You have Japan and Hong Kong in positive territory only slightly,

but Australia is down by 16.5. Thank you so much for investing your

time with us. I'm Rico Hizon. Goodbye for now.

You are watching BBC News. The top stories this hour. President

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