10/01/2018 Asia Business Report


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10/01/2018

Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.


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LineFromTo

mostly in junior roles.

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Now on BBC News, all the latest

business news live from Singapore.

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As Chinese technology giant Alibaba

eyes are possible public listing we

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take stock on how regional exchanges

are competing for initial public

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offerings. -- eyes a. Microsoft

suspends software updates to fix a

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security threat, after users

complained the patches froze their

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machines.

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It is Wednesday, everyone! Good

morning, Asia, hello, world! Glad

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you can join us for another action

packed edition of Asia Business

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Report. I am Rico Hizon. We begin

with Hong Kong, and the Territory is

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changing its listing rules, maybe

trying to attract what Buster

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initial public offerings, such as

Saudi Aramco, the world's a guest

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IPO this year. It is planning to

allow companies to split their stock

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into different categories, known as

dual class shares, to give owners of

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one class greater owned -- greater

voting rights than the other. The

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change could interest Alibaba

chairman Jack Mark -- Jack Ma, who

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may choose Hong Kong over the US to

go public in 2018. Asia was the most

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active region for listings last

year. Over 1600 initial public

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offerings globally, which raised

under 200 billion US dollars. Asia

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saw a surge of 44% by deal numbers.

According to our next guest, 2018

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might bring more big deals. Earlier,

I spoke with Max Loh from Ernst &

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Young. He said investors are excited

by the news that Jack Ma could list

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the company on his home turf.

Alibaba is already listed in the

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United States. Bringing it back to

Hong Kong is always exciting. It

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brings it closer to home. People are

able to identify with the company

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and the things that they do in the

market. It is always exciting.

What

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will it mean for Hong Kong, the IPO

market, and the rest of Asia, if

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Alibaba goes back home?

I think it

will give a filip to the already

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robust exchanges that exist,

especially to Hong Kong, because

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when you have a big company that

comes home that excites investors.

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You already have dual listings

between Chinese companies who have

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listed in Hong Kong, but could this

open floodgates of more American

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listed firms setting up in the big

lights of Hong Kong, Tokyo, Seoul or

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China?

Definitely. Right now the

world is globalised. Investors can

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trade on any global exchange.

Bringing it closer to home makes it

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more accessible. More investors, I

think, will pile on to the stock.

We

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are now globally connected, as you

mention. Is there really a need for

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a dual listing if investors like

lend me, based in Asia, can trade

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dual stocks -- trade US stocks?

Absolutely, but right now it is

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limited to sophisticated investors.

Renewed back home opens it more to

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retail and domestic investors who

can now really invest directly in

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that stock. -- bringing it back

home.

Everybody is looking forward

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to the biggest ever IPO in history,

which is Saudi Aramco. Everybody is

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eating for a share of that piece of

that big pie, whether it is London,

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New York or Hong Kong. Who do you

eventually think will be the big

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winner?

I really don't know.

Exchanges are competitive.

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Cross-border listings are the

flavour of the day. Each exchange

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will put forward what they think are

the competitive advantages to try to

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attract Saudi Aramco. Obviously,

being such a big listing.

Remember

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how we talked about the issues with

chips that are being used in devices

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like computers and mobile phones?

Microsoft has released patches for

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security threats, but they are

freezing some machines which are

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powered via AMD chips. Shares in big

technology companies are down

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following this report. Samir Hussein

has the latest.

What we are talking

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about, their rights and that major

chip makers in the world. Intel and

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AMD. We already heard from the Intel

boss who said, look, it is going to

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be fixed within the next week or so.

AMD is suffering different problems.

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These chips, they had a patch and

they put out that patch to try to

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fix it. Microsoft has been receiving

complaints from its customers saying

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that after the fix was put in, they

were getting frozen screens or the

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dreaded blue frozen screens. As a

result, Microsoft has said, nope, we

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are not going to be issuing this

patch any more for now. Not until

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they can figure out some sort of

sex. -- fix.

Virtual reality

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headsets can limit uses' mobility by

connecting them to a computer, but

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one company has come up with a

hands-free Shen. -- users' mobility.

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Dave Lee got his hands and head on

it at the international consumer

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electronics show in Las Vegas.

The original HTC was as -- was

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extremely well received upon launch

in 2016. This, the Vive Pro, is a

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big upgrade. The resolution on this

version is 78% better than the

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previous one. Looking around here,

that extra resolution does make a

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big difference.

It has an upgraded

lens, displays, upgraded audio and

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had strapped. It is a whole

different product for another

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consumer.

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Now, previously with the HTC Vibe

you have had to connect it to the

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computer with a big cable, which

often got in the way. They think

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they have solved it now with this

adaptor, so now I can take the

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battery pack and put it in my back

pocket. And I can just put this over

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my head and I am free to move

however please, and I do not need to

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worry about tripping over that

cable.

I think it brings up the

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immersion level for you, and it can

actually perform as well as a

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tether. You just have a seamless

experience. It is lots easier.

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Really enjoyable for people.

Some

people say the reason high end of

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the art has not been as widely

adopted as it perhaps could have

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been is because there isn't enough

staff. -- high end VR. There are not

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enough things to do with VR. What

are you doing to solve out?

There is

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more content and people know what to

do without this point. The content

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quality is getting better. Other

things holding it back with things

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like the tether. It will make it

easier for people to get into this

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experience.

Virtual reality with Dave Lee. As we

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speak, South Korean President Moon

Jae-in is speaking to the country.

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This is after Seoul held its first

talks with its northern neighbour in

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two years. North Korea said they

would send a delegation to the

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Winter Olympics next month. Joining

us now for more is my colleague

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Mariko Oi, and the big question is,

they are talking about sports, they

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are talking about the nuclear

missile programme, but what about

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business. -- business? Will this

dialogue give more business

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relations between the two countries?

It is quite possible. The North

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Korean economy, guess what, is

struggling. It has been affected by

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the sanctions imposed after its

latest nuclear tests by the United

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States and the international

community. Some analysts have called

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it one of the very few successes of

President Trump. North Korea needs

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that cash to keep its elite happy

with luxury goods, but also to keep

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funding its nuclear programme.

Tourism has always been the biggest

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moneyspinner but that has fallen off

the cliff after the death of a US

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national in North Korea. One way

that they can make money is by

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reopening the joint north and South

Korean caisson industrial complex.

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-- Kaesong. That was launched back

in 2004, and was seen as a major

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symbol of cooperation between the

two sides. The factory park is a

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combination of 124 South Korean

companies employing 54,000 North

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Korean workers. When it was opened

it used to generate about $100

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million in revenue every year. It

was shut in February 2016 following

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North Korea's fourth nuclear and

long-range missile test. As Rico

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mentioned, President no-one is

currently speaking. We are hoping to

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find out whether North Korea and

South Korea plans to reopen this

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context. We have not heard anything

about that yet but it is a

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possibility.

Thank you for that

update. Moving to other news, Toyota

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and most are expected to announce

they are building a new $1.6 billion

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auto factory in the US state of

Alabama. -- Toyota and Mazda. It is

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a victory for President Trump, who

promised to bring back Manufacturing

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jobs to the United States, and

threatened tariffs on foreign

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reduction. Sources have told media

outlets that the plant will employ

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4000 workers and build three had a

thousand vehicles a year. --

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300,000. A quick look at the

markets:

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Thank you for investing your time

with us. I am Rico Hizon. Sport

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Today is coming up.

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