05/12/2016 Asia Business Report

Now on BBC News all the latest business news live from Singapore.

The connection between Hong Kong and the stock exchanges is now live.

Will it be a success or a risk? A shock resignation. New Zealand's

Prime Minister is stepping down after eight years in power. It is a

Monday. Glad you could join us with this addition of Asia Business

Report. It is live. The long-awaited connection between the Hong Kong and

Shenzhen stock exchange has just started. Foreign investors can

foreign investors can now buy properties listed in changing. For

the latest, we are joined by the Hong Kong stock exchange. Looks busy

there. It is of course an extension of the Hong Kong Shanghai connect. A

message from Beijing that the Chinese markets are gradually

opening? , that's right. It's very busy here today. In just a few

seconds ago, they rang an gong to symbolise the open of Duchenne Jen

and Hong Kong stock exchange connect. -- Shenzhen. A lot of these

are considered different from the stocks available from the Shanghai

stock market because Duchenne Jen and stock market is Stec Heavey. --

tech heavy. They are keen to attract foreign investment. They are also

keen to internationalise their market. They want to encourage more

foreign investment and reach international standards. The MSCI

index decided not to include Chinese stock because they were worried

about access ability issues stop this is going to be seen as a

chance, a step, for China to move towards that. Indeed, a significant

moment. Atkins see a lot of bubblies flowing around behind you. --I can

see. Of course, this particular Shenzhen, Hong Kong connect comes at

a very critical time because we are seeing the Chinese economy slowing

down. We are seeing a weaker yen and expect it US rate hike. Many people

think that is why there has been an delay to the launch of the Shenzhen

stock connect. Some people but it would launch last year and it was

delayed because there was a serious market crash in China. A lot of

people were also expecting it to launch in November but it seems like

there was a delay there is well put up many analysts think it was to do

with the falling UN. Especially after the election of Trump. Many

people are worried about capital flight. They thought it might be

because China wanted to wait for a few weeks. The launch of the

Shenzhen Hong Kong stock connect. Let's check on how the Hong Kong and

Shenzhen markets have opened. As you can see, it is done by one point to

5%. As for the Hong Kong stock exchange, it is lower by about 75

points. The sentiment is basically negative after the Italian

referendum whether no voter one. Moving to New Zealand and the Prime

Minister John Key is resigning stop he made the surprise announcement

meant that are as conference a short time ago saying his family was the

main reason he is leaving office. So, far more, let's cross over to

our correspondence in Auckland. Thank you for joining us. This was a

surprise to many people and now the big question is, the will take over?

Surprise, shock, everybody is dealing with the information at the

moment. Mr He was doing his press conference and then he sprung it on

everybody. Nobody saw it coming. Quite unusual, -- Key. His main

reason is his family. He has had three terms in office and is

exhausted and now is the time to move along and let someone else take

over the reins. You have to understand, for the next election in

New Zealand, in one years time. This gives time for the National party to

get a new leader in and prepare themselves for the next battle. He

has been one of the most popular prime ministers the country has seen

and his National party has had popular feedback in the polls. It

will be an interesting time. Can imagine the opposition parties are

finally looking with some kind of hope for the next election. Stepping

into next week, once it gets confirmed by his party, is ill

English, his finance minister, who has always been his right-hand man.

He was the Lacoste. -- Bill. Throughout these years, I have given

everything I have two this job in the country I love and cherish. This

has come at a sacrifice to my family. For my wife, there have been

many in nights and weekends spent a loan. Many occasions that were

important to her that I simply couldn't attend.

That was Prime Minister John Key explaining why he resigned after

ages in office. Of course everybody wants to find out with chunky moving

ahead, stepping down, what will happen to the New Zealand economy

which is agriculturally dependent -- John Key. He was a very successful

businessman before he became a minister. Obviously tourism is big

in the country and it has overtaken dairy as its primary import. We

think with the election coming up next year, dairy will still be at

the forefront of what has been described as a superstar economy.

Interesting times ahead for New Zealand.

Moving to developments in India and a cash crunch causing by the

government's surprise decision to withdraw large banknotes, has seen

bartering return to many rural villagers. We are seeing how they

are surviving without cash. In other business news, making

headlines. HSBC is targeting the 3 million consumers as it starts

issuing credit cards in China from today. It is the first time it has

done so under its own steam and only two other foreign banks provide

credit cards in China. A significant proportion of the Chinese population

doesn't have a credit card and banks offering them will face challenges

from mobile payment services. But have a quick look now at the

markets. It is currently very nervous day, particularly in the

greater China markets after the Shenzhen markets connect. And also

the yes vote in it till it -- in Italy. Thank you so much for

investing your time with us. Sport Today is up next.

Italian Prime Minister Matteo Renzi says he is resigning