03/07/2017 Asia Business Report

listen to the recommendations of pay review bodies looking

More from me later, but first, he is Rico Hizon. -- here is. Hong Kong

kicks off a new week with a new chief executive and a new trading

link with mainland China. And in an exclusive interview with the BBC, I

speak to the new head of the Philippine central bank. Good

morning Asia. Hello world. It is a Monday. The start of a brand-new

trading week. They you to join us for this week of Asia Business

Report. It was a busy week in Hong Kong, with the 20th anniversary of

the handover. A new Chief Executive has been sworn in and is building

stronger ties with the mainland. The link will allow foreigners access to

the third largest world market. Juliana Loo tell us how it the

linkup will work. -- Liu. According to the central bank to Hong Kong and

China, from today, foreign investors will be able to buy Chenies bonds by

Hong Kong. That is northbound trading from Hong Kong to China. --

that V programme has not yet been announced. -- that leg. It is

institutional investors that will deal to make these trades. The likes

of banks, insurers, and so on. This is the third largest bond market in

the world. It is worth 9 trillion US dollars. At the moment, foreign

investors only count for 2% of the market. Some analysts are predicting

a lot of room for growth. Peter Wong, the CEO of Asia's busy

Asia-Pacific has said that this will be a catalyst for the continuing

development and globalisation of China's bond market. Optimism from

hedges busy. And this trading link is coming so soon after China's

inclusion in the MSCI. It is another opening in the Chinese financial

markets? Absolutely. This is a significant step. One of the

requirements in the recent listing of mainland Chinese shares is that

foreigners could access the shares. Investors, Chinese bonds will soon

become a part of global bond indices.

Investors, Chinese bonds will soon become a part of global bond

The Philippines is a standout in the region. It is one of the Korean

economies in Asia exhibit infrastructure spending and robust

demand. According to the World Bank's most recent projections, this

could see growth of 6.5% - 7% this year alone. This week, I spoke to be

head of the Philippine central bank. In his first interview since taking

job, asked him what jobs lay ahead. We are just because yes, there is

growth, but it is not happening for all of us. People are getting left

behind. That is why we need to strengthen our policy across a broad

front, for the financial sector. We are committed to creating greater

financial inclusion to promote y-axis. This is important

broadening the effects of the broadening the effects of the

economy. -- to promote the access. I will pursue a continuity. We are

looking to support us stability and financial stability. We are already

pointed in the right direction, but we need to improve how we do things.

This involves, in respect to financial sectors, supervision.

Continuing reforms. But also this need to be done in a manner that

promotes financial inclusion, as well as promoting consumer

protections. So with respect to monetary policy, there it is some

continuity there, because we have adopted the interest-rate corridor.

reshaping the way we conduct my reshaping the way we conduct my

cherry policy towards a more market oriented system. The Governor with

the global current economic fundamentals, with China, Japan, and

Brexit negotiations... Could this trigger another global financial

crisis in and other shape or form? The world is facing uncertainty. If

you look at the data, we are doing well. The element of uncertainty

with the places you have identified is quite strong. That is a reason to

not be complacent. For us, we had to forge ahead with the reforms we have

been doing for the last decade or so. He takes the reins at the start

of the second year of President Rodrigo Duterte's taking of office.

He promised to spread the economic growth to everybody. I spoke to an

expert and asked how Rodrigo Duterte's first years compared to

his predecessors. The fact year. his predecessors. The fact year.

SINGING I think what makes it different is that he was able to

facilitate the construction of progress.

They can make progress. He has continued reforms. As he added to

what has started? I think no new infrastructure can be triggered to

the Rodrigo Duterte's pipeline. Had the projects are ready started? It

had been 360 days since it started as president. Adding most of his big

projects would only kick in and around 2019, so that is why the tax

reform is important, because that is expected to finance his big projects

outside of the capital region. What you make of these changes in the tax

reform policy? It really helped the Philippine economy? As it is, it has

been watered down significantly. But what you would really see here is

that it would push up the consumption of the domestic economy

like cutting the domestic income tax. But this has been driven by

huge remittances from overseas Filipino workers like you and me. So

are we going to see more work in the Philippines, or will the economy be

driven by outsourcing, remittances, and infrastructure? I think going

out of the country has become more of a collocated question, now.

Because most graduates, maybe ten years ago, immediately thought of

going out of the country. But with the BPO sector being very high

salary, it is now a very good alternative to staying in the

Philippines. How would you rate Rodrigo Duterte enters of economic

reform? I would say about eight as far as his performance is concerned.

In other business news, making headlines, it is back. Samsung has

announced it will sell a re- furbished version of its Galaxy Note

7 phone. It had to recall them after problems with fire prone batteries.

The cost Samsung over by billion dollars in operating profit. It will

only be available in Korea and will retail for a much lower price than

the original. Let's now have a look at what we are watching this week on

the business and trading front. On Tuesday, the reserve bank of

Australia will be announcing their cash rate decision. The central bank

is expected to give it at a record low of 1.5% at its monthly meeting.

And moving to the next important day, and the European Union ramps up

talks with ASEAN. Senior officials from both sides are meeting in

Bangkok. And world leaders and central bankers are gathering in

Hamburg for the G20 international summit. Let's have a look briefly at

the markets. And at the open, the Nikkei is getting 45 points. The all

of Mary 's index is down by 83 points in early trade. Thank you for

investing your time with us. I am Rico Hizon in Singapore. Sport Today

is coming up next. Stay tuned for