22/02/2017 Asia Business Report

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

More foreign money pours into mainland China, but less is flowing

out. We find out why. And digging up of diversity. The Philippines a

posture the Environment Secretary defends her decision to shut down

mines. -- Philippines' Environment Secretary. Glad you could join us

for this midweek edition of Asia Business Report.

New figures reveal investors are putting more money into China but

China's investments overseas are falling. More than $7 billion US has

been invested in a mainland so far this year, nearly double the same

period in 2015. Outbound deals have dropped 40%. Managing -- I asked how

long it could continue. The projection is that the currency

outflow issues will last for the first half of 2017 and there will be

a pickup going forward after the outflow issues have been curtailed a

bit. Certainly it is in China's interest not to clamp down to

tightly on all of the outbound investments of the market players.

It is speculated that later in the year there will be a pickup on

outbound investment and a lot of the restrictions may be eased. But on

the flipside we are seeing more deals into China. Which sectors and

industries have been making a big push into the mainland? To start

with, I think there is both a short and long-term response to your

question. The longer term response is because there is a growing middle

class and because the population is ageing, the sectors are related to

consumer staples, fast moving consumer goods, retail,

entertainment, leisure, recreational options for the new wealth that's

being created in a middle-class. From a democratic perspective

because of the ageing population there is a greater need for

healthcare. Pharmaceuticals, health foods. And on the care side for

seniors, since there's fewer extended family to care for seniors,

the fact that senior care facilities and housing would be a sort after

thing as well. For foreign investors in the past we have been told horror

stories about investing in China. Are we now seeing a more level

playing field? Two responses. Firstly, the regulations that came

out at the end of 2016 have opened up more of the economy. More sectors

of the economy. The negative list is shorter, so there are more

opportunities to invest, as well as streamlining the process for

investing in China by foreign investors. The second issue is risk

management. Foreign investors tend to be better at managing the risks,

of doing business in China over time. They compare China with other

emerging market risks and it is something they can manage. The

Indian government is pushing back against US President Donald Trump's

protectionist talks on jobs. Narendra Modi wants the US to have a

balanced and long-term view on issue of skilled workers. Lawmakers have

been visiting India, as well as the Microsoft boss, who has met the

information technology minister. He says the US should recognise the

contribution Indian companies make to its technology industry. They are

creating value, they are creating employment. They are creating

potential. A large number of American companies are -- are

benefiting with jobs. That needs to be recognised. In Hong Kong, there

is a potential trade war between China and the US and a drop in

tourism is hitting the economy. We will find out how bad the impact

this when Hong Kong unveils its growth begins later today. A sharp

slowdown last year is expected and the forecast this year isn't much

better. What can Hong Kong do about it? Don't forget, when we look at

the previous years of retail sales in Hong Kong it was very much driven

by mainland tourists. And the spender. So we are coming off a high

based probably more normalised rate. At the same time the domestic

spender wasn't really spending and there was lacklustre in that sense.

One of the main reasons why mainland tourists aren't coming to Hong Kong

any more if they have more options. That's true. Everyone is going to

Japan, Korea, there are other tourism destinations in the region.

And even the once vibrant financial sector has been plagued with layoffs

and dwindling stock-market turnover. It is a very interesting situation

from a stock market perspective. We are seeing a revival in sentiment in

certain shares, coming from the southbound trade programme, that

means mainland money coming through. But don't underestimate the odd

venereal spirit of Hong Kong. You will always bounce back! Yes. What

about global protectionism? At the biggest fear of investors in 2017

and going forward during this term of President Donald Trump. How much

would Hong Kong suffer if a trade war between America and China? It

suffer because don't forget Hong Kong's ports are conned at for many

products. It is a real risk for market as global trade, the

environment is a -- so fragile. For the first time in 15 years growth in

trade was lower than GDP growth. In other business news, Yahoo has

agreed to cut $350 million off its original asking price in the sale of

its internet business to telecoms giant Horizon. This comes after two

huge cyber attacks, ending -- attacks. The world's largest

retailer has been a boost in sales. Walmart reporting profits of 1.8%

higher than investors expected. An increase in online sales and higher

traffic helping to lift profits, leading to a 10th straight quarter

of comparable sales growth. World's it is the mining company swung back

into profit in the first half. Net profits are coming in at more than

$3.2 billion in the six months until December and that's an eightfold

increase compared to the same period one year ago. The rebound in

commodity prices boosted business confidence. BHP gave shareholders a

bigger than expected dividend of 40 cents per share.

Mining companies in the Philippines face different prospects.

Philippines' Environment Secretary is stepping up a campaign to shut

downsides that she says are causing damage. Gina Lopez has 75 mining

contracts in sensitive coastal areas. This report on the impact on

?1. -- on town.

The city of Santa Cruz is 260 kilometres north of the capital,

Manila, and is home to four mines closed down by the Environment

Minister Gina Lopez. One of the largest mining firms suspended its

operations last July, while the government conducted a month's law

mining audit. The company's corporate manager says it has cut

1150 jobs. TRANSLATION: As of this moment we don't have any operations

and everyone is sad and looking for jobs elsewhere.

Gina Lopez says the mines ordered closed have caused environmental

damage along the coastline. There should be no mining in these areas

because it will affect the quality of life there. She has promised aid

for communities affected, saying eco- tourism, farming and forestry

could offset the loss of the mines. What critics say Gina Lopez's

decision will ruin the livelihoods of over 1 million people will wipe

out jobs. The local union leader says he doubts of Santa Cruz could

be transformed into a tourist destination that could compete with

other popular islands in the Philippines. TRANSLATION: She is

saying she can give jobs to those places that can be potential tourist

spots. Yes, I believe she can do that. But how about our town here in

Santa Cruz? We can't offer anything. Our islands here are too

underdeveloped to become a tourist destination. However, Gina Lopez has

the support of local environmentalists, who play mining

activities for clogging and contaminating waterways and causing

landslides. TRANSLATION: The dangers outweigh the benefits it can give.

We are still hoping to live until the next generation. We have

children and grandchildren who depend on the environment. Now, if

our environment is destroyed, how will they live on? The Philippines

has been the world's top supplier of nickel ore since 2014, when

Indonesia banned exports of unprocessed minerals.

In the markets, Asia is inching higher in early trade after fresh

record highs on Wall Street. That was due to news on eurozone activity

accelerating to a six-year high and the dollar gained against was the

Japan, Hong Kong and Australia in positive territory. As for your

time. Sport Today is coming