SocGen said to explore sale of Asia private bank for $600 million (or valuation of 3.8-4.6% of its $13-16 billion AUM vs valuation of 1% of AUM for fund managers

SocGen said to explore sale of Asia private bank

12:53am EDT

By Saeed Azhar and Denny Thomas

SINGAPORE/HONG KONG (Reuters) – Societe Generale, France’s No. 2 listed bank, is exploring the sale of its Asia private banking arm, people familiar with the matter told Reuters, seeking to exit a market where small managers are getting hit by rising costs and competition. The Singapore-based division could fetch around $600 million, the people familiar said, though the actual sale price has yet to be determined and may exceed that figure. The sources declined to be identified as the discussions are confidential. Read more of this post

Southeast Asia is becoming China’s version of Florida for retirees

Southeast Asia is becoming China’s version of Florida for retirees

By Gwynn Guilford @sinoceros September 11, 2013

Since last year in China, people have been retiring faster new workers are entering the workforce. Fourteen percent of the population is now at least 60 years old, and at this pace, China’s total population will start to decline in 2030. And now even some of those retirees are contributing to population loss, increasingly spending their twilight years in Thailand, Malaysia and the Philippines, according to a recent report in China’s state-run Global Times (GT). Thailand is already a big favorite among Chinese people; it was China’s fourth most-popular tourist destination in 2012, while Malaysia and the Philippines came in at #10 and #20, respectively. Read more of this post

Chinese Lenders Contribute 1/3 of Global Banking Profits: Ma Weihua

Chinese Lenders Contribute 1/3 of Global Banking Profits: Ma Weihua

09-11 16:54 Caijing

Chinese banks contributed 95.5 percent of indirect financing a decade ago, and the proportion fell to around 60 percent at the end of June.

Chinese banks are among the most profitable in the world, said Ma Weihua, Chairman of Wing Lung Bank Limited on the sidelines of the Davos Forum in Dalian. China is home to 100 of the world’s 1000 biggest banks last year, contributing one third of global profits in the banking sector, according to Ma, who was also former governor of China Merchants Bank. He warned at the same time, though, with new challenges ahead, Chinese banks should “have a sense of crisis” and be ready to embrace reforms. Financial markets excluding banks have developed quickly, he said. The bond market is booming, for example, second only to banks in size. Money has been flowing out of the banks through the financial system, making its way towards wealth management products, which amount to several trillions yuan, and trust loans at nearly 10 trillion yuan, as well as private capital market, which is reportedly worth 4-5 trillion yuan, according to Ma. The challenge of so called financial “disintermediation” is even more severe, Ma said, noting third-part payments. The number of companies with a third-part payment licenses has risen to over 100 in a market worth 2 trillion yuan, eroding the position of banks as a platform for payment, he said. Banks contributed 95.5 percent of indirect financing a decade ago, and the proportion fell to around 60 percent at the end of June.

Chinese insulin maker Gan & Lee investigating allegations it paid 800 million yuan in bribes

China drug firm Gan & Lee investigating allegations it paid 800 million yuan in bribes

Wednesday, 11 September, 2013, 6:50pm

Reuters in Shanghai

Sales representative claims bribes were to raise sales ahead of planned initial public offering

Chinese insulin maker Gan & Lee Pharmaceuticals said on Wednesday it was investigating allegations published in a newspaper that it spent around 800 million yuan (US$130.72 million) to bribe doctors to promote the firm’s drugs over five years. A sales representative for the privately held company, identified by the pseudonym Wu Dejiang, told China’s 21st Century Business Herald the bribes were aimed at raising sales ahead of a planned initial public offering in Shanghai. Read more of this post

Why Dollarama still won’t accept credit cards in its stores

Why Dollarama still won’t accept credit cards in its stores

Hollie Shaw | 13/09/11 | Last Updated: 13/09/11 3:17 PM ET
TORONTO – Dollarama executives are not convinced they should allow customers to shop with credit cards at Canada’s biggest dollar store chain. The company, which introduced debit cards as a payment option in 2008, has run pilot tests of credit card shopping through some of its point of sale terminals, but chief executive Larry Rossy said Wednesday he is not sold on accepting the debt-funded plastic. Read more of this post

Shah Rukh Khan to open India’s first Kidzania theme park

SRK-Backed KidZania India Opens First Theme Park

by Deepak Ajwani | Sep 11, 2013

Education and entertainment combine to make KidZania a novel theme park. It also helps that it’s being backed by Shah Rukh Khan

A few years ago, an NRI businessman and a Bollywood superstar, both still unknown to each other, had a common wish. They wanted to set up a children’s theme park. One strategically wanted his family’s business empire—focussed on manufacturing thus far—to enter the consumer space; and the other’s excitement stemmed from his children’s fascination for such entertainment, as well as his own love for kids. Fate brought the two together. Read more of this post

HK property tycoons scramble to meet targets as cooling measures bite

HK property tycoons scramble to meet targets as cooling measures bite

Wed, Sep 11 2013

By Yimou Lee

HONG KONG, Sept 12 (Reuters) – Hong Kong’s powerful property developers are locked in a price war as measures to cool one of the world’s most expensive real estate markets force them to impose steep discounts to hit sales targets, with many turning to mainland China to fill the gap. Developers such as Cheung Kong (Holdings) Ltd, controlled by Asia’s richest man Li Ka-shing, are even throwing in free car park spaces – which can be worth $100,000 or more in densely populated Hong Kong – to lure buyers at a time when quarterly transactions are at their lowest level since 1996. Read more of this post

Romantic Germany risks economic decline as green dream spoils; Germany is committing slow economic suicide. It has staked its future on heavy industry and manufacturing, yet has no energy policy to back this up

Romantic Germany risks economic decline as green dream spoils

Germany is committing slow economic suicide. It has staked its future on heavy industry and manufacturing, yet has no energy policy to back this up.

Germany’s nuclear power plants. Their closure will cut off a fifth of the country’s total power Photo: Reuters

By Ambrose Evans-Pritchard

7:35PM BST 11 Sep 2013

Instead, the country has a ruinously expensive green dream, priced at €700bn (£590bn) from now until the late 2030s by environment minister Peter Altmaier if costs are slashed – and €1 trillion if they are not. The Germans are surely the most romantic nation on earth. Read more of this post

Fracking Moves U.S. Crude Output to Highest Level Since 1989; “The state of Texas is now producing more oil than the country of Iran.”

Fracking Moves U.S. Crude Output to Highest Level Since 1989

U.S. oil production jumped last week to the highest level since May 1989, cutting consumption of foreign fuel and putting the U.S. closer to energy independence.

Drilling techniques including hydraulic fracturing, or fracking, pushed crude output up by 124,000 barrels, or 1.6 percent, to 7.745 million barrels a day in the seven days ended Sept. 6, the Energy Information Administration said today. Read more of this post

Indonesian Govt Calls on Business Leaders’ ‘Sense of Patriotism’ to Save the Economy

Govt Calls on Business Leaders’ ‘Sense of Patriotism’ to Save the Economy

By Tito Summa Siahaan on 9:22 pm September 11, 2013.
The government is showing signs of desperation in its attempt to improve the country’s worsening economic situation, calling for business “patriotism” in dealing with the country’s weakening currency and persistent current account deficit. Finance Minister Chatib Basri, Trade Minister Gita Wirjawan, and Industry Minister MS Hidayat, met with more than 140 business leaders including Franky Widjaja, chairman of Sinar Mas Group, Sofjan Wanandi, chairman of the Indonesian Employers Association (Apindo), and Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), in Jakarta on Wednesday. Read more of this post

Indonesia’s woes are ASEAN’s problems

Indonesia’s woes are ASEAN’s problems

Some fear that Indonesia is heading for a crisis. Growth in the second quarter dropped below 6 per cent. Deficits in both the current account and trade widened markedly. The rupiah fell some 10 per cent last month to its lowest level against the US dollar in four years.

BY SIMON TAY –

5 HOURS 41 MIN AGO

Some fear that Indonesia is heading for a crisis. Growth in the second quarter dropped below 6 per cent. Deficits in both the current account and trade widened markedly. The rupiah fell some 10 per cent last month to its lowest level against the US dollar in four years. Read more of this post

Despite Joko Widodo’s Popularity, Megawati Will Likely Run Herself

Despite Joko Widodo’s Popularity, Megawati Will Likely Run Herself

By Aleksius Jemadu on 9:57 am September 12, 2013.
While other political parties have declared names for their presidential candidates, the Indonesian Democratic Party of Struggle chooses to wait and see. During its National Meeting last week in Jakarta, chairwoman Megawati Soekarnoputri, asked members of her party to be patient and wait until the result of the 2014 legislative elections is known. She probably wanted to emphasize the importance of winning the legislative elections first, before formulating accurate strategies to go after the top executive job. Read more of this post