25/04/2017 Asia Business Report

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

China stocks taking a nosedive as regulators crackdown and investors

lose confidence. And will South Korea's giant family -- family run

companies change the elections? -- ahead of the. It is a Tuesday. Good

morning Asia, hello world. Glad you could join us for Asia Business

Report. I Rico Hizon. We start off with Chinese investors and they are

closely watching their portfolios today after the worst day of trading

this year. As you can see right here on our graphic board, stocks on the

Shanghai stock market have been on a downward spiral over the past two

weeks. So what is causing the loss of confidence? Regulators are

cracking down on speculative trading and underlying concerns that the

economy is slowing, weakening investors' enthusiasm. We get more

from our Shanghai corresponded. The Shanghai and stock market and the

Shenzhen stock exchange are opening in about one hour. Everybody will be

watching how they will react to what happened yesterday. --

correspondent. Yes. I think one of the most interesting statistics

after yesterday's events was that the last time we saw a fall like

this in 2015, it was followed by 820% fall over the next six days.

That came two years ago in that summer of horror. We had to

substantial falls in the Chinese stock markets and $5 trillion was

wiped off the value of shares in this country. And the economic

incompetence, really, of the regulators, here, and the political

leadership here was exposed. In the next hour, we will see whether the

trend is likely to continue from yesterday, and then the test will be

the extent to which this regulatory bite is willing to tolerate falls in

the market, or if there is a limit for China's newly emboldened

regulators and we may see some kind of intervention, either in a

suspension of trading, or if government backed investors will

come on trade of all things up. So it will be interesting. One fall --

1.4% drop yesterday. Some say this crackdown is a positive for the

Chinese stock markets because it will increase the appeal of the

stock market to foreign investors such as pension funds. Yes.

Volatility is a huge issue in the stock markets here, particularly in

Shenzhen. What we're seeing is effort from the newly emboldened

Rigoletto is to try and send a message to investors looking to come

in, but also investors with money in the market already, that they are

willing to let them write it out on our own, really. They tried to send

the message that they won't always be there to intervene, and this

market can be more mature and become something more like a free, open

stock market. But like I say, I think there is a level of tolerance

here. Remember this is an important political year for the government

here. Overall, the regulators I don't think will let things go

completely on their own. Everybody will watch the opening trades in the

Shanghai stock market in about 55 minutes' time. South Korea's is a

selection is in two weeks from today. There are calls for real

reform and particularly in regards to chaebols. The biggest chaebols

have been charged in the events that brought down the President. We take

a look now at peace two. Calls for of chaebols have happened many times

before. But it really feels, on the ground, for many of the people that

I spoke to, that this time it is different. I spoke with business

leaders in small and medium-sized enterprises that said that chaebols,

these massive family run conglomerates, that they stack the

system against them. Young people as well complain about the lack of jobs

and opportunities because of this chaebol dominated system. Another

Saturday, another protest in Seoul. Many here are calling for the reform

of massive family run conglomerates, or chaebols, as they are known.

TRANSLATION: Right now, cables monopolise to much of the wealth in

South Korea and it isn't being used properly. I think this needs to be

corrected. -- chaebols. One of frustration, a sense that the system

is stacked in favour of the chaebols. South Korea's president

and the heads of Samsung and Lotte have been charged with bribery. But

at the top of the country's tallest tower, built by Lotte, we can see

how far this has brought South Korea. Here, South Korea's marvel at

what the chaebols have built in just a few decades. You know, it occurs

to me, as I looked out from this building, towering over the city of

Seoul, that it is like the relationship between chaebols and

how much they dominate the South Korean economy. On the face of it,

you would never know that scandal had hit Lotte. But there is

recognition in the sprawling empire that something has to change.

TRANSLATION: The corporate brand image has been damaged. Because of

that, new investment and development of new businesses may have been

affected. But it has also provided us with the opportunity to look at

corporate governance, which we have not been paying attention to. That

is little comfort for those who challenge the dominance of the

chaebols. 15 years ago, this man was the founder of a successful

business. He partnered -- partnered with a chaebol to spend. But after

there was a disk ute over the deal, he lost everything. -- dispute. His

business, his house, and his marriage. He should be the evidence

of his long campaign for justice, which has come to nothing.

TRANSLATION: I have fought for 15 years. I have met more than 170

congressmen. My case has been discussed in the National Assembly

and featured countless times in the media. It is impossible in Korea for

a small business to win against a chaebol. Whatever is next for Cho,

his future and that of other families will inevitably be checked

by chaebols. They have been some steps to change, but it is hard to

see how real reform could go. And his was not the only story we heard.

There were many such similar tales that people in Seoul told us about

the unfairness of the system. Because the reformer getting louder.

But we are sounding like a broken record here. Over and over again,

reforms for chaebols, but now, with what has happened, is there enough

impetus for reform is to take root? I think that the real test for this

will be at the elections next month, when South Koreans go to elect their

new president. Brita much every single candidate has made chaebol

reform part of their election campaign platform. -- pretty much.

Whether or not this actually happens, you will be very difficult,

even how entrenched chaebols are within the South Korean economy.

While commuting to meetings, is that of traffic, could you take a

helicopter? Sharanjit Leyl went for a browse. If you're in the market

for a new helicopter or a state-of-the-art drone, then this is

the place for you. This is Asia's first show dedicated to rotorcraft.

And just about every big Pharma is here, hawking products. So let's

seem what is on offer and who buys them. This is the Airbus H160. Let's

go inside and have a look. How much is this cost? The cost of a

helicopter in the basic version, it should be around, all included,

about 10.4 million euros in 2017. That is a lot of money. So who buys

these things? VIPs, of cores. We also have oil and gas operators. --

offcourse. Doctors love the interior and it can be used as a long-range

ambulance. Finally, it is public services, which might include search

and rescue missions, and others who need this size of a helicopter. --

of course. Let's find out who some of these buyers are. This man has

his place in order for three helicopters, amounting to $60

million. He is with an aircraft maintenance and charter firm. Time

is money. We make deals happen. People who come into the country or

arrived in Manila, we fly them to their meeting place, to our helipad.

They have their meeting in two hours, make a big deal happen, and

give jobs to a lot of people. So business aviation really provides

the opportunity to create, actually, jobs, deals. The region is still a

relatively new market for helicopters. But these companies are

betting orders and demand continues skyward.

Great looking helicopters. Thank you for investing your time with us. I

Rico Hizon. Sport Today is coming up next. -- I'm.