Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.
Browse content similar to 25/04/2017. Check below for episodes and series from the same categories and more!
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.