:00:00. > :00:16.Now on BBC News all the latest business news live from Singapore.
:00:17. > :00:23.This industry has never been easy. It hasn't been easy in the time I
:00:24. > :00:30.have been in charge and it wasn't easy for my predecessor and not my
:00:31. > :00:38.successor. He tells me it is still tough but they are stronger. The
:00:39. > :00:40.Bank for International Settlements something alarm on Chinese banking
:00:41. > :00:59.sector. Work on the aged business report. --
:01:00. > :01:05.Asia Business Report. Two years ago GSK was found guilty of bribing
:01:06. > :01:11.doctors. The company now claims to have done more to improve
:01:12. > :01:15.compliance. Next year, Sir Andrew Witty will retire and they say
:01:16. > :01:21.between now and then, they will make medicines affordable.
:01:22. > :01:29.We think the right, responsible responses to have tiered structure.
:01:30. > :01:36.We think that works pretty well and that has allowed us to go into a
:01:37. > :01:39.substantial working market business. And in China, despite the
:01:40. > :01:43.challenges, we are seeing our business return to growth and it is
:01:44. > :01:51.an area we remain off domestic. -- optimistic. Increasing access to
:01:52. > :02:04.medicine for the Chinese people. What might have be have the levels
:02:05. > :02:09.improved? We have aimed to refocus the business. We see the whole
:02:10. > :02:20.market place has slowed down. I fully expect that we will have a
:02:21. > :02:23.competitive performance. Are you confident that the measures and
:02:24. > :02:28.policies you have in place will not see a repeat of the scandal? It's
:02:29. > :02:37.impossible to Darren T perfection when you are operating in over 100
:02:38. > :02:44.countries that make guaranteed. -- countries. Guaranteed. We have had a
:02:45. > :02:49.long time and we continue strengthen. You are here and
:02:50. > :02:53.Singapore speaking to a lot of your Asian counterparts, people in other
:02:54. > :02:57.companies, what have they been asking you about Brexit? No change
:02:58. > :03:02.of any rules taking place. Nothing has happened in the real world.
:03:03. > :03:07.There is a lot of talk and uncertainty. For a company like
:03:08. > :03:17.GlaxoSmithKline, nothing has changed. It is unlikely anything
:03:18. > :03:22.will change for a few more years. When that process begins and when it
:03:23. > :03:29.concludes, the areas we are most interested in and most impacted is
:03:30. > :03:35.regulatory. What will the UK's relationship be? Will bogey a new
:03:36. > :03:40.regulation, more regulation? -- will there be. We are interested in ideas
:03:41. > :03:43.around that. We looking forward to seeing the specifics come out. The
:03:44. > :03:48.second big question which is the same for everybody is will we be in
:03:49. > :03:53.the single market in any way, shape or form? We're working on the
:03:54. > :03:57.assumption that we are not and we are looking at something which is
:03:58. > :04:01.more like a WTO environment with FTA's rather than the continuation
:04:02. > :04:08.of the single market. That may be wrong but that is our working
:04:09. > :04:13.hypothesis. Cheap executive of GlaxoSmithKline. -- chief executive.
:04:14. > :04:21.China's credit to GDP gap hit 30.1 in the first quarter in 2016. That
:04:22. > :04:24.has tripled the level the bank considers to be a potential danger.
:04:25. > :04:30.Is china's financial system in trouble? I spoke to David quote.
:04:31. > :04:41.The thing about China is we can do the numbercrunching. But ultimately,
:04:42. > :04:53.we are talking about China. -- that retreat. China controls everything.
:04:54. > :04:58.As far as China is concerned, they owned the banks anyway. It is a
:04:59. > :05:04.banking crisis, but China will bail them out. We know that but according
:05:05. > :05:08.to the IMF, there is about $1.3 trillion here that is potentially
:05:09. > :05:12.out of risk of default. So even if China bails out its banks, if they
:05:13. > :05:19.indeed get into lots of trouble, what impact will it have on China's
:05:20. > :05:24.economy? That is a wonderful point. What I think the BIS is alluding to
:05:25. > :05:27.is the banks are lending money to the state owned enterprises but it's
:05:28. > :05:34.not really driving the economic droves that it could. It means that
:05:35. > :05:38.it is pouring money into enterprises and businesses that are not really
:05:39. > :05:42.that productive. Really, it has to stop doing that. Ultimately, it will
:05:43. > :05:46.run out of money. We go back to the first point, it cannot run out of
:05:47. > :05:50.money because we are talking about China and this is communism and so
:05:51. > :05:53.simply, all that will happen is the Chinese government will say, right,
:05:54. > :05:59.the banks are in trouble, we will bail them out. Why is every body so
:06:00. > :06:04.worried? We know China is a global engine of growth, it is Asia's
:06:05. > :06:10.largest economy. Any impact on what happens they will have repacked --
:06:11. > :06:15.repercussions elsewhere. How might the region be impacted? It could be
:06:16. > :06:19.infected -- affected. We will get house price data later in the week.
:06:20. > :06:24.The last day today came out shows that new house price growth in China
:06:25. > :06:30.was rising at about. Some of the major cities like Shanghai and
:06:31. > :06:35.Beijing were rising at 20% per year. What China is doing, ultimately, is
:06:36. > :06:39.a saint to the banks that they will cut the amount of money that they
:06:40. > :06:44.need to keep the reserve. They lend the money to consumers and consumers
:06:45. > :06:48.go out and spend it on new property. They are going to need furniture and
:06:49. > :06:51.things so that is driving the growth that China has. Should we be
:06:52. > :06:55.worried? Up to a point I think we should. Again, I go back and
:06:56. > :06:59.distress the major point which is we are talking about Communist state
:07:00. > :07:03.that is in control of everything. David Kuo.
:07:04. > :07:18.Singapore's High Court has granted a reprieve to the shipping giant
:07:19. > :07:22.Hianjing allowing them to sail in without being impounded. There have
:07:23. > :07:24.been refusals to let them dock because they were worried they would
:07:25. > :07:32.not get paid. -- Hianjin. Hianjin is a giant, a family of a
:07:33. > :07:35.conglomerate peculiar to the country. It is not the only one in
:07:36. > :07:41.difficulty. Prosecutors are hoping to end their long investigation into
:07:42. > :07:45.bribery allegations against another group by summoning its chairman this
:07:46. > :07:53.week. Is there a big problem with the system itself? Are warning that
:07:54. > :07:58.the report contains lush photography.
:07:59. > :08:06.They are everywhere in South Korea. Take this place. Korea University.
:08:07. > :08:22.This unsung Memorial Hall just there. -- Samsung. LG, they felt
:08:23. > :08:29.real -- central to the South Korean way of doing business. Three of them
:08:30. > :08:44.are in focus at the moment. There has been apologies for fuel --
:08:45. > :08:52.feuding amongst the family. Lotte. And also at Samsung, a battery that
:08:53. > :08:57.might catch fire. And at Hianjin, there was an apology for his
:08:58. > :09:07.daughter who turned on a customer who served nuts the wrong way. --
:09:08. > :09:17.flight attendant. Is there a problem? There are lots of problems.
:09:18. > :09:31.They do not listen to their shareholders. When it comes to
:09:32. > :09:40.appointing top management many Chebos are very powerful. It will
:09:41. > :09:46.slow down but it is prosperous. Chebos have served Korea very well.
:09:47. > :09:52.Chebos are doing very well that they may not be doing well in the future.
:09:53. > :09:59.With the symptoms of that. They are operating other things in the
:10:00. > :10:07.country. The labour, subcontractors, the consumers that have to pay
:10:08. > :10:11.higher prices. Students dream of working for them but every scandal
:10:12. > :10:12.of difficulty raises the question again and aloud are. Are they
:10:13. > :10:29.outdated? There has been a snag in the opening
:10:30. > :10:38.-- opening of the equities.