:00:00. > :00:22.Carrie Lam will become Hong Kong's new chief executive. But what the
:00:23. > :00:26.new leadership mean for the economy? And what to look for in buying a
:00:27. > :00:35.piece of art. We get a few tips from the experts.
:00:36. > :00:44.Hello and welcome to Asia Business Report. I'm Sharanjit Leyl. A 1200
:00:45. > :00:52.strong committee dominated by pro- Beijing executives have elected
:00:53. > :00:57.Carrie Lam as the new Hong Kong chief executive. She has promised to
:00:58. > :01:02.heal wounds over Beijing's industry. With a slowing economy in mainland
:01:03. > :01:10.China, she could be facing economic headwinds. I spoke with research at
:01:11. > :01:14.Peter Church at that the issues that will be at the top of her agenda. In
:01:15. > :01:18.Hong Kong, the affordability question on housing has been a huge
:01:19. > :01:24.economic and political hot button in Hong Kong. And if you look at it
:01:25. > :01:29.rationally, it is really a supply it generated a problem. Hong Kong has
:01:30. > :01:34.been producing less than half of the long-term average supply of housing
:01:35. > :01:38.in the last decade. So there is a massive shortfall of housing that
:01:39. > :01:46.has built-up. You put that in context of very low interest rates,
:01:47. > :01:51.and you can see, you don't have to be an economics Ph.D., to understand
:01:52. > :01:55.that prices will go up. And besides property, there are other issues.
:01:56. > :01:58.There are a lot of concerns about whether Hong Kong, which has always
:01:59. > :02:03.been seen as the gateway to China, can remain relevant as a financial
:02:04. > :02:06.hub. Especially as there are many Chinese cities perfectly capable of
:02:07. > :02:10.playing that role as gateway to China. So how will they remain
:02:11. > :02:15.relevant? There are a lot of areas. Hong Kong, as you say, has always
:02:16. > :02:19.been the conduit of Finance and financial services into and out of
:02:20. > :02:25.China. That role should continue. But probably what needs to be done
:02:26. > :02:31.is more of a focus on areas such as wealth management and harnessing the
:02:32. > :02:38.flows of capital out of China and into the rest of the world through
:02:39. > :02:42.what is in fact a rule of law economy that can't really be
:02:43. > :02:46.replicated in China. I think we can also expect to see the government
:02:47. > :02:54.pushing for improvements in legislation, which allows Hong Kong
:02:55. > :02:58.to participate in change issues like the one built one road and the Asian
:02:59. > :03:03.investment banks. So those areas where we expect to see the
:03:04. > :03:08.government puts focus that was Peter Church speaking to me earlier.
:03:09. > :03:13.Shares in Toshiba are higher on news that Westinghouse could file for
:03:14. > :03:20.bankruptcy protection as early as Tuesday and is seeking support from
:03:21. > :03:23.Korean alleged power. Toshiba's gains come against a backdrop of a
:03:24. > :03:34.broader market downturn this morning. The fund now has 70 member
:03:35. > :03:39.countries, with 13 joining just last week. Including Canada. The former
:03:40. > :03:43.British minister Danny Alexander told me the international make-up of
:03:44. > :03:51.the 80 I ID means it is not possible for the Chinese to promote their own
:03:52. > :03:55.interest. Above others. -- AIIB. People can actually see now that
:03:56. > :03:57.this is an institution that has very high standards of international
:03:58. > :04:01.governments. All members are involved in our decisions. We have a
:04:02. > :04:05.well functioning board of directions. John has one seat
:04:06. > :04:11.amongst well. Many other countries are represented on that board as
:04:12. > :04:15.well. -- China has one seat amongst 12. Most important, the standards we
:04:16. > :04:19.set for our projects, in terms of environment will impact and how
:04:20. > :04:28.social issues like population resettlement are dealt with. The
:04:29. > :04:41.access of countries to access these issues and affect how we deal with
:04:42. > :04:50.them in funding. -- AIIB. There has been a lot of focus on the Chinese
:04:51. > :04:53.one belt, one road process, which is a push to develop like the silk
:04:54. > :04:57.road. Those are projects that you are funded. It seemed to suggest,
:04:58. > :05:01.though, that this is closely and lined to China's international
:05:02. > :05:06.interest. If you look at the projects that we find, so we
:05:07. > :05:12.wondered that a slum upgrade project in Indonesia. We funded a new
:05:13. > :05:17.gas-fired power station in Myanmar, upgrading hydroelectric power
:05:18. > :05:21.schemes in Pakistan. With these sorts of projects all over the Asia
:05:22. > :05:26.region. Some of those things will overlap with the one belt, one road
:05:27. > :05:32.policy. Many are different from it. At the end, the bank meets its own
:05:33. > :05:37.decisions, about what are the appropriate things to find. There
:05:38. > :05:42.are important policies of many different governments that are
:05:43. > :05:46.considered. All the member countries have a role in that. So we must make
:05:47. > :05:50.sure that in each country we are working according to the direction
:05:51. > :05:54.that the government has set and the international agreements that they
:05:55. > :05:57.have signed up to. And that was Danny Alexander speaking to me.
:05:58. > :06:04.History will be made in Europe this week as a new entrant into the
:06:05. > :06:08.mobile market appears. Britain will trigger Article 50 on Wednesday.
:06:09. > :06:12.This will officially begin the process of breaking away from the
:06:13. > :06:19.European Union. Also on that same day, you have Samsung, they are
:06:20. > :06:24.scheduled to release the Galaxy S8, which was the U replacement for the
:06:25. > :06:33.Galaxy Note 7 that was recalled for exploding batteries. I spoke earlier
:06:34. > :06:36.with Andrew Staples and asked if the Brexit honours will have an
:06:37. > :06:39.immediate effect. Just in the process, this is something we have
:06:40. > :06:45.been waiting for for the last nine months. This will trigger a two year
:06:46. > :06:49.period of negotiation for UK to leave the EU. Here in Asia, I think
:06:50. > :06:53.the impact will be minimal. Certainly in the short term, there
:06:54. > :06:56.could be some volatility around the pound sterling. But that has been
:06:57. > :07:01.priced into the market over the last months and weeks. Longer term, there
:07:02. > :07:04.will be continuing questions over the UK's attractiveness as an
:07:05. > :07:08.investment destination. Of course, a lot of Asian investment goes to the
:07:09. > :07:12.UK, particularly thinking about the Japanese auto sector and so on. But
:07:13. > :07:16.we have seen positive news from people like Toyota and Nissan who
:07:17. > :07:19.have confirmed their commitment to the country. There will be
:07:20. > :07:23.uncertainty over what kind of relationship the UK will have with
:07:24. > :07:28.the European Union following this two year period. You have mentioned
:07:29. > :07:33.Toyota there, at Nissan, and Toyota said they would invest in Britain,
:07:34. > :07:36.but they are warning that they need terror free access to the continent.
:07:37. > :07:41.Is that something our businesses should be looking out for?
:07:42. > :07:44.Absolutely. But that will not become clear any time soon. There is this
:07:45. > :07:48.two year period of negotiation. There is scepticism as to whether we
:07:49. > :07:57.will reach a deal in that time. If we don't, then we will revert to WTO
:07:58. > :08:02.access to the EU. Which would not be preferential for people like Toyota.
:08:03. > :08:09.And the other news of course is the S8, which comes after the exploding
:08:10. > :08:12.Galaxy Note 7 is, and comes in a political crisis in which there are
:08:13. > :08:17.factor boss has effectively been put in jail. Will this be everything
:08:18. > :08:21.they hope for? Certainly hoping so. They need to pull something out of a
:08:22. > :08:24.hat given the political situation in Korea and the difficulties that
:08:25. > :08:31.Samsung have had over recent months, as well. Let's see how the market
:08:32. > :08:35.response that, especially consumers. Nearly 80,000 people visited Asia's
:08:36. > :08:45.biggest art fair in Hong Kong this weekend. The organisers of Art Basil
:08:46. > :08:50.said sales were strong and tapped into a grey market in Asia for
:08:51. > :08:56.high-end art. We asked to art experts for their tips on buying. --
:08:57. > :09:02.Art Basel. The first thing I will tell a young collector is to take
:09:03. > :09:06.your time. Don't rush into anything. Find a good dealer, a good adviser,
:09:07. > :09:17.you can trust. Trust is very important. And then engage with
:09:18. > :09:22.them. You should know the artist's basic background, such as where they
:09:23. > :09:28.were educated or how they started. What is, how he developed to this
:09:29. > :09:36.style. Then you make a combination of judgement. A work of art is not a
:09:37. > :09:45.cheap thing to get involved with. And I will always tell them, by the
:09:46. > :09:51.best quality. And if it doesn't hurt when you purchase it, don't buy it.
:09:52. > :10:00.I encourage the young collector to buy artists more or less the same
:10:01. > :10:11.age. The reason is I think after 30 years or 40 years, you will look
:10:12. > :10:15.back and you will have grown at Canterbury to the others. I think
:10:16. > :10:21.this is a wonderful and special memory for the collector. And that
:10:22. > :10:25.was investing in art. Let's look at investing markets. Not great this
:10:26. > :10:31.morning. You can see the Nick Cave and a stratum markets have opened
:10:32. > :10:33.lower. -- Nikkei. That is it for Asia Business Report. Thank you for
:10:34. > :10:41.watching. -- Australian. Welcome back. You're watching BBC
:10:42. > :10:42.News. We bring you up with the