News & Analysis

Australasian Companies Prefer Asia for Investments

October 11th, 2011 by No comments »

According to a recent report by professional services organization, Ernst & Young, it seems that these days the most preferred region for Australasian companies to make their investments is in the Asia Pacific region.  The study by the firm was conducted in September 2011, and looked at a thousand business executives around the world.

More than 70 percent of Australasian companies would choose the Asia Pacific region to make their investments, the study found.  Looking internationally, almost half of investors would likewise also choose the same region.  Out of the entire region, the main countries investors choose seem to be: China, India, Malaysia and Singapore.

Investors Priorities

When it comes to what investors are seeking, over half of the companies are focusing on growth (slightly more than a few months ago, when the figure was just under half) and 42 percent are concentrating on preserving stability (this figure has increased 9 percent from April).  Over the same time frame, there has been a decrease in the companies looking for survival (from 18 to 7 percent) which is definitely a good thing since it is indicative that economically things are looking up and that the recession isn’t necessarily paramount on every investors mind these days.  In fact, the 7 percent figure is the lowest it has been since the study began back in 2009; clearly good news for recessional worries.

China Popularity

So why is it so popular – and this has been the case for a long time – to invest in China?  According to an article in Seeking Alpha, there are five main reasons.  First, the country’s huge population (which is almost double of that of America) results in a large customer count. Second, the amount of different types of investments available due to the sheer volume of the companies and businesses there.  Third, the national pride that exists in the country’s companies.  Fourth, the idea of sovereign protection in the country; China is working on encouraging its citizens to increase consumption in the country.  Fifth, the recent appreciation of the Yuan.

So it makes sense that investors are looking towards Asia – and more specifically China – to put their capital.

China’s Golden Week Highly Profitable This Year

October 10th, 2011 by No comments »

Julius Santos, the director of marketing for the Four Seasons Hotel in Macau was pleased with the upsurge in revenue during this year’s “Golden Week” holiday in China.

Santos explained that this year not only was there more tourists occupying hotel rooms, but the average length of hotel stays was also up. In addition, the hotel was able to charge more for hotel rooms per day as a result of the increase in the number of guests.

The celebration of China’s “National Day” is one week long, and a popular place to spend the holiday is in Macau, China’s only area where gambling casinos are legal. The Macau Four Seasons is located on the highly popular Cotai Strip, where Santos said that occupancy of the Four Seasons was “pretty much 100 percent.”

Other hotels in the area reporting equally successful “Golden Weeks” were the Wynn Macau Ltd. and the Mandarin Oriental, which also described full bookings for the week.

Macau is near to Hong Kong, and was under Portuguese rule until Portugal returned the city to China in 1999.

“Business was definitely stronger,” Santos said. “The majority of the city was booked up during Golden Week.”

China’s Political Impact on Washington and Vice Versa

October 10th, 2011 by No comments »

The China Currency Bill – that is set to reach the Senate on October 12, 2011 – would result in tariffs on China and other countries in the Asian region.  The rationale behind this is that their currencies have been depressed in an effort to boost exports.  Thus these countries now have to pay the price. But ultimately, critics say that it would not make sense when analyzing government trade data.   It could negatively impact the American economy, resulting in job loss as well as economic surplus from Chinese trade and business in the country when China stops bringing in its business in revenge.  Everything has its consequences: Washington needs to seriously weigh up everything before reaching a decision.

Asia’s Art Market Expanding

October 10th, 2011 by No comments »

Finally it seems that Asia’s art market has recovered, along with the rest of the world’s art market that was suffering from the recessional issues.  It is Beijing and Hong Kong that is now really enjoying a comeback.  Although it is true that the art market did suffer somewhat, this was relatively minimal compared to other markets that really took their toll during the recession.  However, on this matter there would be disagreement from the European Fine Art Foundation which claimed that indeed the global financial crisis was very influential vis-à-vis the global art market.

According to Artability Art & Collection consultant, Zhan Xuhua, “the credit crunch really affected the art dealing industry.”  He pointed out that consumers even managed to get some famous paintings at discount prices in auctions in 2008-09.  This was paramount throughout the world, from Europe to America as well as Asia (specifically China).

Increased Demand for Art Today

Clearly, one only needs to look at prices of artwork to see how far the market has come.  Art is definitely a luxury once more (fewer sales; higher prices) and the fact that there are way more sales taking places also shows that there is no longer a concern that the global art market is going through a recession these days.

Art as Investment

People often purchase art as an investment.  They will choose to buy a piece of artwork to enjoy, but also as an alternative investment to stocks and bonds, etc.  As well, it is often a “safe bet” as it were as like gold, it gives back a steady return and can gain value over time.  Just last year, the Chinese art market did so well that it became an international runner in top art markets.  During 2010, revenues for fine art auctions totaled $3bn (US), higher than the figure for America for the same time frame.

Oil Tanker Leak Near New Zealand Under Control

October 8th, 2011 by No comments »

A Liberian-flagged ship released oil off the coast of New Zealand after striking a reef on October 5th. A thin film of oil, called sheen, has spread over an area which is now moving westward away from the ship and the northern New Zealand port of Tauranga.

It is believed that oil has stopped leaking from the Rena, a 32-year-old cargo ship which reported carrying 25 unhurt crew members, over 2,000 containers, and some hazardous materials in addition to oil.

Maritime New Zealand announced that the priority at the moment is to remove all the remaining fuel from the disabled ship. Over 500 defense personnel have been called to action along with four naval boats and teams of underwater and aerial experts to assess the overall situation and prepare a cleanup protocol.

The ship struck the reef about 12 nautical miles from the coast of New Zealand, damaging pipes and causing two of the ship’s holds to flood. Although the ship is listing to port, the vessel is stable and the tanks containing the remaining oil were reported as not damaged.

New Zealand’s Green Party is requesting the government to release more details about the materials on board the stricken ship, with special concern for the hazardous goods in transit.

The Rise of Asia

August 23rd, 2010 by No comments »

The stock market in Asia – Pacific region is unique in the world to keep green in most of the trading week , except week session key swing by the action from Europe and America .

As of the week , the index MSCI Asia – Pacific increased 0.4 % to 118.29 points , after declining 3.7 % in the previous week. Index is down 8.4 % from the peak years of the date 15/04/2010 . Shanghai ‘s Composite Index of China increased 1.4 % . Nikkei 225 down 0.8 % in Japan . South Korea ‘s Kospi rose 1.7 % .

Although Japanese economic decline in the second quarter , but the opportunities to create momentum for China ahead . According to data released Tuesday by the Japanese 16 / 8 , the total domestic product ( GDP ) of Japan is 1286 billion dollars , lower than the figure of 1335 billion U.S. dollars in China.

Along with the change of his two economies Japan, China , a number of countries and territories in Asia last week has emerged stronger . Central Bank of Malaysia , Zeti Akhtar Aziz said the country’s economy grew 8.9 % in quarter 2 / 2010 over the same period last year and expected to grow 6 % in 2010.

But according to the statistical offices of Taiwan (China ) , GDP quarterly 2 / 2010 of the area has grown 12.53 % over the same period last year . Quarter 1 / 2010 , the rate of economic growth in Taiwan reached 13.71 % . Taiwan ‘s exports could grow more than 30 % this year .

Thai Prime Minister Abhisit Vejjajiva Monday 20 / 8 expressed confidence that the export sector will help boost gross domestic product ( GDP ) this year of at least 7 % . Mr. Abhisit said Thai economic growth of 10% in first 6 months of 2010 primarily due to strong export growth .

Quarter 2 / 2010 , European economic growth 1 % quarter U.S. economic growth 1 / 2010 the first published data is 2.4 % and could be adjusted downward to 1.4 % last week , can assert Asian economic growth will be the first ship of the global economy in 2010 .

Britain’s Telegraph newspaper recently described a series of statistical data was very positive about the growth of the Southeast Asian country . Accordingly, in 2010, Singapore will achieve economic growth record of 15 % , 7 % followed by Malaysia , Indonesia, Philippines 6.6 % and 6 % .

The newspaper said that following the global economic downturn 2008-2009 , some Southeast Asian countries have recovered quickly . This area is becoming attractive investment in the context of Vietnam and Thailand is rising next to the economy is considered development in the region such as Singapore .

According to the newspaper , the national investment funds and individual investors now want to choose Asia and Southeast Asia to increase investment by the ability to achieve high profits . Last year, Fidelity Investment Fund has spent 25% of investment in Southeast Asia , while Aberdeen and First State Fund respectively for 35 % and 25 % investment in the region.

Meanwhile, today 19 / 8 , the Asian Development Bank ( ADB ) has published a report said the middle class (the consumers from U.S. $ 2-30 per day ) of the rapidly expanding Asia will be able to act as leading consumer and help re- balance the economy .

This report is in a special edition of the main indicators for Asia and the Asia – Pacific 2010 . Accordingly, studies show that Asian consumers consumption around 4300 billion dollars , equivalent to one third of the consumption of industrialized countries ( OECD ) .

Japan’s MUFG bank buys China stake in BNP Paribas

August 12th, 2010 by No comments »

MUFGThe largest Japanese bank, Mitsubishi UFJ Financial Group (MUFG), has secured access to the apparently promising Chinese mutual fund market. As rumored on Monday ininvestment circles, Mitsubishi UFJ Financial Group (MUFG) is set to take over the share of French BNP Paribas in its Chinese joint venture, SYWG BNP Paribas. The price for the 33 percent stake amounts to 50 million dollars (38.4 million euros), said in verhandlungsnahen circles.

The French bank has to follow existing laws and Chinese law separate from the share, as foreign investors may be present only through a single joint venture in China. Remaining after a BNP Paribas sell nor a joint venture with Fortis Haitong a market share around two percent.

Mitsubishi UFJ Financial Group (MUFG) would thereby entering the Chinese market created for investment funds, whose volume is estimated at 300 billion dollars. The bank reported to have sat through against about a dozen rivals, including the Japanese bank Nomura Holdings, the London-based Ashmore Group. More than 30 foreign financial firms, including JPMorgan and Credit Suisse, based in China joint venture.

Business investment increased by 1.1 percent in Hokkaido

August 3rd, 2010 by No comments »

The Hokkaido branch of the Bank of Japan said yesterday, the amount of capital investment in Hokkaido in 2010 increased 1.1 percent . Increased in two areas in particular: Food Manufacturing and Steel.

Food Manufacturing increased19.4% over the previous year with a 1178 billion yen forecast . Steel rose 22.9 percent. The investment continues to remain high for a nuclear -related materials connect to Steel Works .

As expected non-manufacturing industries decreased by 5.7% 2517 million yen . The development of the New Chitose Airport International Terminal finished another investment round, yet there was another 29 % decline in real estate.

Agricultural Bank of China listed A shares to secure this issue price

July 15th, 2010 by No comments »

Agricultural Bank of China A + H shares will be listed in the Shanghai and Hong Kong listing for 15 and 16 days. Investors were worried that stocks were listed below their market value on the first day that the Agricultural Bank issued the price. Head of the office Sheng Chuannong urged investors not to hurry to sell .

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South Korea, foreign investment restrictions on the OECD 6

July 5th, 2010 by No comments »

FDI regulations published by the OECD 2010 index according to Iceland to South Korea 0.142 ( 0.430 ), Mexico ( 0.264 ) New Zealand ( 0.263 ), Japan ( .241 ) , Canada ( 0.153 ) followed by six ranks . Index of FDI restrictions on foreign direct investment and related institutions are broken down into four categories to produce Rate 0-1 , closer to 1 means a high number of regulatory intensity .

Korea’s FDI regulatory restrictions stock index sectors, look at the highest executive of the 0.139 0.001 nationality restrictions , regulations and other companies operating in the 0.002 each.

Among OECD members Luxembourg NetherlandsFDI restrictions index is just a fact of 0.004 does not limit foreign investment were reported . Following Portugal ( 0.006 ) , Belgium ( .016 ) , Spain ( 0.019 ) Germany( 0.025 ), Finland ( 0.040 ), Slovakia ( 0.049 ) was followed by regulatory strength .