17/06/2016

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:00:16. > :00:24.It has been a rollercoaster week for global investors. Can anything calm

:00:25. > :00:31.the jitters being sold from Asia to the US? And from manufacturing to

:00:32. > :00:38.innovation, how China is looking for new ways to expand its economy. Good

:00:39. > :00:40.morning, Asia. Hello, world. And welcome to Asia Business Report. I'm

:00:41. > :00:48.Rico Hizon. Thank you for investing your time with us. It is Friday.

:00:49. > :00:55.Glad you could join us. It has been quite a week, with major meetings in

:00:56. > :01:01.the US and Japan keeping investors on edge and leading to volatility in

:01:02. > :01:05.global stocks and currencies. You have the ups and downs continuing as

:01:06. > :01:11.we count down next year's vote on whether Britain will indeed leave or

:01:12. > :01:17.remain in the EU. How should investors manage their portfolios?

:01:18. > :01:24.The way I look at it is that anything would have been fine simply

:01:25. > :01:31.because the market hates uncertainty. We did not know what

:01:32. > :01:40.the Federal Reserve would do, what the Bank of Japan would do, and what

:01:41. > :01:45.Britain will do. Now we have the American Federal decision out of the

:01:46. > :01:50.way and Japan out of the way, the Bank of Japan decision out of the

:01:51. > :01:54.way, two of those unknowns are now known. Now we have just one left.

:01:55. > :02:02.What will happen with written and the EU. This Brexit. Are investors

:02:03. > :02:09.starting to digest the fact that Britain could leave? There appears

:02:10. > :02:16.to be a high chance of return leaving the EU rather than staying

:02:17. > :02:21.the way things are at the moment. Unfortunately, one of the things we

:02:22. > :02:26.have wrong at the moment with polls is they aren't accurate. We don't

:02:27. > :02:30.know what will be decided. I have my own personal opinion about what will

:02:31. > :02:40.happen on that date but ultimately it is just an opinion. I think

:02:41. > :02:45.Britain will choose to stay. It is the younger generation that will

:02:46. > :02:50.decide what on that day. When I talk to the younger generations, like my

:02:51. > :02:56.children, they are more likely to want to stay in the EU rather than

:02:57. > :03:01.to leave. From now until then, how should investors manage their

:03:02. > :03:06.portfolios? Sit tight with their assets? Or go into cash? Going into

:03:07. > :03:13.cash is the wrong thing to do. Go into bonds. Stay calm. Don't be

:03:14. > :03:21.affected by what is happening. Ride the volatility? Not just that but

:03:22. > :03:27.understand what you are sitting in. If you buy shares in a company and

:03:28. > :03:33.the company is doing fine, what are you worried about? Stay calm and

:03:34. > :03:39.don't worry. For three decades, China has been the world's factory,

:03:40. > :03:44.manufacturing has turned it into the world's second-largest economy. But

:03:45. > :03:49.growth is stagnating and they will need to innovate to keep growing.

:03:50. > :03:59.Can they thrive on the mainland? As part of our series, we report from

:04:00. > :04:05.Beijing. Early morning at the officers in Beijing. -- offices. The

:04:06. > :04:10.next generation of China's army of workers, more Silicon Valley than

:04:11. > :04:14.production. They have decided to design a new kind of Chinese

:04:15. > :04:20.company, one that wants to go global from the start. Cheetah used to make

:04:21. > :04:28.mobile developer software, but now it makes games. It has 350 million

:04:29. > :04:33.monthly users. Just like Facebook. American companies are not working

:04:34. > :04:38.as hard as us. It isn't because they have the leading technologies, it is

:04:39. > :04:44.because of the way they think. We valued knowledge and hard work, they

:04:45. > :04:48.value direction and vision. That is when I figured we needed a bigger

:04:49. > :04:55.goal, to go global. That is part of their plan. In 2006, Beijing

:04:56. > :05:00.announced a new vision for the future, that in 2020, China will

:05:01. > :05:04.transform into an innovative society. By 2050 it will be a

:05:05. > :05:10.world-class leader in science and technology. Ambitious plans. But

:05:11. > :05:16.this country certainly has the political will and the money to do

:05:17. > :05:22.this. But can this sort of top down innovation work? It is a debate this

:05:23. > :05:27.person gets drawn into a lot. Breakthrough innovation will be

:05:28. > :05:35.difficult. The Chinese education system has improved. But it is still

:05:36. > :05:38.focused now on helping with the drills that make you good in

:05:39. > :05:45.building something and not so good in breaking the mould. But change is

:05:46. > :05:55.coming in small but significant way the. In this education laboratory,

:05:56. > :06:02.Lego and a child foundation teach a child to do, not by rote education.

:06:03. > :06:04.It may still be in its early stages but there is no shortage of

:06:05. > :06:12.ambition. And Chinese companies are quick studies. And you can catch

:06:13. > :06:17.more of China's most innovative companies on Talking Business at

:06:18. > :06:23.these times on your screen right here on BBC World News. More

:06:24. > :06:27.business news. Shanghai theme park opened its gates to great fanfare on

:06:28. > :06:35.Thursday. There is Mickey Mouse and Minnie mouse. Thousands of fans

:06:36. > :06:44.poured through the front gates. This is not Disney's first in China. One

:06:45. > :06:48.opened a decade ago. But its numbers have been dwindling. We found out

:06:49. > :06:52.why. Until this week, this was the only place characters like Mickey

:06:53. > :06:58.Mouse could greet fans on Chinese soil. But even before the

:06:59. > :07:05.competition opened in Shanghai, business here was far from booming.

:07:06. > :07:09.The number of tourists from the mainland has fallen in line with the

:07:10. > :07:15.economic slowdown. Last year there was 6.8 million visitors. A fall of

:07:16. > :07:20.nearly 10% from the year before, largely because of absent Chinese

:07:21. > :07:29.tourists. That contributed to a loss of nearly 20 million US dollars for

:07:30. > :07:34.the whole year. To cut costs, they shared just over 100 jobs in the

:07:35. > :07:38.past few months. But it is fighting back. -- shed. Executives at the

:07:39. > :07:44.Hong Kong theme park launched several new attractions and had some

:07:45. > :07:49.discounts. TRANSLATION: Mainland China is such a big market. Our

:07:50. > :07:54.company in the US also has two in parks in the one country. It is big

:07:55. > :07:59.enough so we are afraid. Still, there is no doubt the market has

:08:00. > :08:02.just got that little bit tighter. The Shanghai opening is likely to

:08:03. > :08:08.effect business, they say, in Hong Kong. We expect this year, with the

:08:09. > :08:14.slowdown in the mainland market, we will, our tourism arriving numbers,

:08:15. > :08:18.will also slow down. But it will be partially compensated by arrivals

:08:19. > :08:23.from the other markets in the region. But, obviously, we have to

:08:24. > :08:28.put in a lot more work to be able to face the competition. The tourism

:08:29. > :08:33.board is stepping up marketing campaigns in neighbouring countries

:08:34. > :08:37.and north and South East Asia. They hope two Disney parks in China is

:08:38. > :08:44.not one too many. BBC News, Hong Kong. Several big names in the

:08:45. > :08:52.gaming industry in the past returning for another bite at the

:08:53. > :09:01.cherry in E3 Games Expo. The producer of one remastered title,

:09:02. > :09:03.Final Fantasy XII says the process is not as easy as it seems. Welcome

:09:04. > :09:41.to the madhouse! DUBSTEP MUSIC. How do you decide how much to change

:09:42. > :09:45.when you are remastering a game? TRANSLATION: You want to be careful

:09:46. > :09:50.about making too many changes in the graphics. It is already well

:09:51. > :09:59.received. We don't want to make it worse. But we also want to be

:10:00. > :10:06.advantage of the better specs of the next generation platform. When you

:10:07. > :10:10.remastered a game you already have the assets and the story written so

:10:11. > :10:16.is this an easy way for the studio to make money? TRANSLATION: Not

:10:17. > :10:21.really. It isn't that easy. Of course, the assets have been used

:10:22. > :10:28.from the earlier title but you can see there has been as much that went

:10:29. > :10:40.into this one as went into the original. Thank you so much for

:10:41. > :10:41.investors your time with us. -- investing. I am Rico