:00:00. > :00:13.Now on BBC News, all the latest business news, live from Singapore.
:00:14. > :00:20.China stocks taking a nosedive as regulators crackdown and investors
:00:21. > :00:34.lose confidence. And will South Korea's giant family -- family run
:00:35. > :00:39.companies change the elections? -- ahead of the. It is a Tuesday. Good
:00:40. > :00:43.morning Asia, hello world. Glad you could join us for Asia Business
:00:44. > :00:48.Report. I Rico Hizon. We start off with Chinese investors and they are
:00:49. > :00:52.closely watching their portfolios today after the worst day of trading
:00:53. > :00:59.this year. As you can see right here on our graphic board, stocks on the
:01:00. > :01:04.Shanghai stock market have been on a downward spiral over the past two
:01:05. > :01:07.weeks. So what is causing the loss of confidence? Regulators are
:01:08. > :01:14.cracking down on speculative trading and underlying concerns that the
:01:15. > :01:18.economy is slowing, weakening investors' enthusiasm. We get more
:01:19. > :01:23.from our Shanghai corresponded. The Shanghai and stock market and the
:01:24. > :01:28.Shenzhen stock exchange are opening in about one hour. Everybody will be
:01:29. > :01:34.watching how they will react to what happened yesterday. --
:01:35. > :01:40.correspondent. Yes. I think one of the most interesting statistics
:01:41. > :01:46.after yesterday's events was that the last time we saw a fall like
:01:47. > :01:51.this in 2015, it was followed by 820% fall over the next six days.
:01:52. > :01:55.That came two years ago in that summer of horror. We had to
:01:56. > :01:58.substantial falls in the Chinese stock markets and $5 trillion was
:01:59. > :02:04.wiped off the value of shares in this country. And the economic
:02:05. > :02:09.incompetence, really, of the regulators, here, and the political
:02:10. > :02:13.leadership here was exposed. In the next hour, we will see whether the
:02:14. > :02:18.trend is likely to continue from yesterday, and then the test will be
:02:19. > :02:24.the extent to which this regulatory bite is willing to tolerate falls in
:02:25. > :02:27.the market, or if there is a limit for China's newly emboldened
:02:28. > :02:33.regulators and we may see some kind of intervention, either in a
:02:34. > :02:36.suspension of trading, or if government backed investors will
:02:37. > :02:45.come on trade of all things up. So it will be interesting. One fall --
:02:46. > :02:50.1.4% drop yesterday. Some say this crackdown is a positive for the
:02:51. > :02:53.Chinese stock markets because it will increase the appeal of the
:02:54. > :02:59.stock market to foreign investors such as pension funds. Yes.
:03:00. > :03:03.Volatility is a huge issue in the stock markets here, particularly in
:03:04. > :03:10.Shenzhen. What we're seeing is effort from the newly emboldened
:03:11. > :03:14.Rigoletto is to try and send a message to investors looking to come
:03:15. > :03:19.in, but also investors with money in the market already, that they are
:03:20. > :03:22.willing to let them write it out on our own, really. They tried to send
:03:23. > :03:27.the message that they won't always be there to intervene, and this
:03:28. > :03:31.market can be more mature and become something more like a free, open
:03:32. > :03:35.stock market. But like I say, I think there is a level of tolerance
:03:36. > :03:39.here. Remember this is an important political year for the government
:03:40. > :03:43.here. Overall, the regulators I don't think will let things go
:03:44. > :03:47.completely on their own. Everybody will watch the opening trades in the
:03:48. > :03:52.Shanghai stock market in about 55 minutes' time. South Korea's is a
:03:53. > :03:59.selection is in two weeks from today. There are calls for real
:04:00. > :04:07.reform and particularly in regards to chaebols. The biggest chaebols
:04:08. > :04:16.have been charged in the events that brought down the President. We take
:04:17. > :04:21.a look now at peace two. Calls for of chaebols have happened many times
:04:22. > :04:25.before. But it really feels, on the ground, for many of the people that
:04:26. > :04:30.I spoke to, that this time it is different. I spoke with business
:04:31. > :04:34.leaders in small and medium-sized enterprises that said that chaebols,
:04:35. > :04:38.these massive family run conglomerates, that they stack the
:04:39. > :04:42.system against them. Young people as well complain about the lack of jobs
:04:43. > :04:49.and opportunities because of this chaebol dominated system. Another
:04:50. > :04:54.Saturday, another protest in Seoul. Many here are calling for the reform
:04:55. > :05:01.of massive family run conglomerates, or chaebols, as they are known.
:05:02. > :05:06.TRANSLATION: Right now, cables monopolise to much of the wealth in
:05:07. > :05:12.South Korea and it isn't being used properly. I think this needs to be
:05:13. > :05:16.corrected. -- chaebols. One of frustration, a sense that the system
:05:17. > :05:24.is stacked in favour of the chaebols. South Korea's president
:05:25. > :05:29.and the heads of Samsung and Lotte have been charged with bribery. But
:05:30. > :05:35.at the top of the country's tallest tower, built by Lotte, we can see
:05:36. > :05:40.how far this has brought South Korea. Here, South Korea's marvel at
:05:41. > :05:47.what the chaebols have built in just a few decades. You know, it occurs
:05:48. > :05:50.to me, as I looked out from this building, towering over the city of
:05:51. > :05:55.Seoul, that it is like the relationship between chaebols and
:05:56. > :05:59.how much they dominate the South Korean economy. On the face of it,
:06:00. > :06:02.you would never know that scandal had hit Lotte. But there is
:06:03. > :06:08.recognition in the sprawling empire that something has to change.
:06:09. > :06:12.TRANSLATION: The corporate brand image has been damaged. Because of
:06:13. > :06:16.that, new investment and development of new businesses may have been
:06:17. > :06:20.affected. But it has also provided us with the opportunity to look at
:06:21. > :06:25.corporate governance, which we have not been paying attention to. That
:06:26. > :06:29.is little comfort for those who challenge the dominance of the
:06:30. > :06:32.chaebols. 15 years ago, this man was the founder of a successful
:06:33. > :06:37.business. He partnered -- partnered with a chaebol to spend. But after
:06:38. > :06:45.there was a disk ute over the deal, he lost everything. -- dispute. His
:06:46. > :06:49.business, his house, and his marriage. He should be the evidence
:06:50. > :06:52.of his long campaign for justice, which has come to nothing.
:06:53. > :06:57.TRANSLATION: I have fought for 15 years. I have met more than 170
:06:58. > :07:01.congressmen. My case has been discussed in the National Assembly
:07:02. > :07:06.and featured countless times in the media. It is impossible in Korea for
:07:07. > :07:15.a small business to win against a chaebol. Whatever is next for Cho,
:07:16. > :07:19.his future and that of other families will inevitably be checked
:07:20. > :07:24.by chaebols. They have been some steps to change, but it is hard to
:07:25. > :07:29.see how real reform could go. And his was not the only story we heard.
:07:30. > :07:36.There were many such similar tales that people in Seoul told us about
:07:37. > :07:41.the unfairness of the system. Because the reformer getting louder.
:07:42. > :07:46.But we are sounding like a broken record here. Over and over again,
:07:47. > :07:51.reforms for chaebols, but now, with what has happened, is there enough
:07:52. > :07:55.impetus for reform is to take root? I think that the real test for this
:07:56. > :07:58.will be at the elections next month, when South Koreans go to elect their
:07:59. > :08:05.new president. Brita much every single candidate has made chaebol
:08:06. > :08:07.reform part of their election campaign platform. -- pretty much.
:08:08. > :08:13.Whether or not this actually happens, you will be very difficult,
:08:14. > :08:25.even how entrenched chaebols are within the South Korean economy.
:08:26. > :08:30.While commuting to meetings, is that of traffic, could you take a
:08:31. > :08:36.helicopter? Sharanjit Leyl went for a browse. If you're in the market
:08:37. > :08:40.for a new helicopter or a state-of-the-art drone, then this is
:08:41. > :08:47.the place for you. This is Asia's first show dedicated to rotorcraft.
:08:48. > :08:52.And just about every big Pharma is here, hawking products. So let's
:08:53. > :09:04.seem what is on offer and who buys them. This is the Airbus H160. Let's
:09:05. > :09:11.go inside and have a look. How much is this cost? The cost of a
:09:12. > :09:19.helicopter in the basic version, it should be around, all included,
:09:20. > :09:24.about 10.4 million euros in 2017. That is a lot of money. So who buys
:09:25. > :09:32.these things? VIPs, of cores. We also have oil and gas operators. --
:09:33. > :09:37.offcourse. Doctors love the interior and it can be used as a long-range
:09:38. > :09:42.ambulance. Finally, it is public services, which might include search
:09:43. > :09:50.and rescue missions, and others who need this size of a helicopter. --
:09:51. > :09:54.of course. Let's find out who some of these buyers are. This man has
:09:55. > :10:01.his place in order for three helicopters, amounting to $60
:10:02. > :10:06.million. He is with an aircraft maintenance and charter firm. Time
:10:07. > :10:11.is money. We make deals happen. People who come into the country or
:10:12. > :10:16.arrived in Manila, we fly them to their meeting place, to our helipad.
:10:17. > :10:20.They have their meeting in two hours, make a big deal happen, and
:10:21. > :10:25.give jobs to a lot of people. So business aviation really provides
:10:26. > :10:29.the opportunity to create, actually, jobs, deals. The region is still a
:10:30. > :10:34.relatively new market for helicopters. But these companies are
:10:35. > :10:38.betting orders and demand continues skyward.
:10:39. > :10:43.Great looking helicopters. Thank you for investing your time with us. I
:10:44. > :10:52.Rico Hizon. Sport Today is coming up next. -- I'm.