Chinese Shoppers Change Hong Kong Border Area; Vast numbers of mainland Chinese traders and shoppers are pumping money into Hong Kong, leading to rapid development of the territory’s border area

Chinese Shoppers Change Hong Kong Border Area

JUNE 10, 2014

By CHRIS HORTON

HONG KONG — Smoking a cigarette outside a mall in the border town of Sheung Shui, a man who gave his name only as Chen stands next to a wheeled cart filled with purchases. He is visiting from the Chinese city of Shantou, 177 miles away, a trip he makes several times a year.

“When I come to Hong Kong, it’s mainly to buy medicine — maybe some food products, too,” said Mr. Chen, who declined to provide his full name because of a crackdown on illegal exporting. “There are more brands available here, many of which you can’t find back home. On the mainland, there is also a lot of counterfeiting.” Read more of this post

Hong Kong Regulators Tense About China Loans

Hong Kong Regulators Tense About China Loans

By KEITH BRADSHER

JUNE 10, 2014 5:44 PM Comment

Updated, 8:25 p.m. | A surge in business loans to the slowing mainland Chinese economy has prompted Hong Kong regulators to impose strict financial rules four years before they are required under new global standards.

The move is aimed at discouraging banks in Hong Kong from raising money by relying too heavily on short-term funds that can evaporate during periods of tumult. But big global banks have been resisting, over fears that the rules will cut into their profit by driving up loan costs. Read more of this post

Joko Plans to Abolish National Exam for Younger Students; “It’s better to look stupid but be smart, rather than to look intellectual but be stupid. It’s better to listen to people’s opinion rather than act like a know-it-all.”

Joko Plans to Abolish National Exam for Younger Students

By SP/Arnold Sianturi on 11:52 pm Jun 10, 2014

1.  Indonesian Democratic Party of Struggle (PDI-P) presidential hopeful Joko Widodo on Tuesday said that he would eliminate Indonesia’s national exam for elementary and junior high school students if elected.

“It’s better if there’s no national exam for students in elementary school and junior high school,” Joko said at a teachers’ workshop in North Sumatra. “It’s better to look stupid but be smart, rather than to look intellectual but be stupid. It’s better to listen to people’s opinion rather than act like a know-it-all.”

The teachers said “Amen.”

He was referring to controversy surrounding the exam: critics have argued that the test is so difficult that it encourages rote learning and memorization aimed at achieving a high exam score rather than depth or subtly of comprehension.

Education Minister Muhammad Nuh last year said that he would eliminate the elementary school exam in 2014, which he did. But the government replaced it with a new, similar test, 75 percent of which was written by local education agencies and 25 percent of which was written by the central government.

Indonesian Election Fever Grips the Nation After Presidential TV Debate

Election Fever Grips the Nation After TV Debate

By Dessy Sagita on 11:11 pm Jun 10, 2014

Presidential candidate Prabowo Subianto, second to left, greets his opponent Joko Widodo, center, next to vice presidential candidates Hatta Rajasa, left, and Jusuf Kalla, right, before their presidential debate in Jakarta on June 9, 2014. (Reuters Photo/Supri)

1.  Election fever has gripped the nation after the first TV debate between Governor Joko Widodo and former general Prabowo Subianto, flanked by their respective running mates, Jusuf Kalla and Hatta Rajasa, engrossed viewers on Monday night.

Read more of this post

Asia’s New ‘Axis of Reform’?

Asia’s New ‘Axis of Reform’?

By William Pesek on 07:17 pm Jun 10, 2014

Asia’s three biggest economies are suddenly experiencing a burst of change that could alter the growth trajectory for the world’s most populous region. Are we seeing the birth of a new “Axis of Reform,” one which could revive the global economy?

China’s Xi Jinping, India’s Narendra Modi and Japan’s Shinzo Abe are simultaneously sketching out vague-but-promising plans to revitalize their rigid economies. It’s not a coordinated process — more of a serendipitous coincidence, driven by a dire need for change in all three nations. Still, the possibilities are enticing: A truly dynamic and innovative Asia would raise living standards for billions and fresh hope for a world wondering where all its big growth engines went. Read more of this post

Keeping It In the Family: Even though Isia has the largest economy in ASEAN, it remains a small stock market; Family-owned businesses are avoiding equity offerings to the public because they can raise money by borrowing from banks

Keeping It In the Family

By Dominic G. Diongson, Vanesha Manuturi and Dion Bisara on 09:02 pm Jun 10, 2014

A worker shorts Sido Muncul’s best seller herbal remedy Tolak Angin. (JG Photo/Dhana Kencana)

Some family-owned businesses are avoiding equity offerings to the public because they can raise money by borrowing from banks. They also don’t want to cede control or dilute ownership, because they believe that everything should remain in family hands.

In their journey to expand and develop, why do some family-run firms choose banks and loans over an initial public offering? Globe Asia examine the various factors at play. Read more of this post

MSCI Keeps China Out of Indexes as Korea Upgrade Abandoned

MSCI Keeps China Out of Indexes as Korea Upgrade Abandoned

By Belinda Cao on 08:27 am Jun 11, 2014

China’s mainland-traded shares won’t be included in MSCI’s emerging-markets index, while South Korea and Taiwan were removed from consideration for an upgrade to developed market status.

MSCI, which based its decision on limitations to investing in China’s so-called A shares, may consider an inclusion in 2015, the index provider said in a statement on Tuesday. The MSCI Korea and MSCI Taiwan indexes will be removed from potential reclassification because of the absence of “any significant improvements” in areas such as the limited convertibility of local currencies and market accessibility. Read more of this post

In Japan, labor crunch pushes businesses to reform

In Japan, labor crunch pushes businesses to reform

TOKYO – Don Quijote and Uniqlo, two of Japan’s best-known mass-market retailers, aren’t waiting for the government’s new growth policies due later this month before implementing their own labor reforms.

JUNE 5

TOKYO – Don Quijote and Uniqlo, two of Japan’s best-known mass-market retailers, aren’t waiting for the government’s new growth policies due later this month before implementing their own labor reforms.

While many labor-intensive businesses face a shortage of low-wage workers as Japan’s economy perks up, discount chain Don Quijote Holdings is drawing five times more job seekers since it bucked tradition and eased application requirements. Read more of this post

Jokowi’s presidential campaign budget 4 times Prabowo’s

Jokowi’s presidential campaign budget 4 times Prabowo’s

JAKARTA — The month-long campaign for the Indonesian presidential election on July 9 started yesterday, with frontrunner Mr Joko Widodo leading Mr Prabowo Subianto not only in opinion polls, but also in the campaign budget.

BY HERA DIANI –

JUNE 5

JAKARTA — The month-long campaign for the Indonesian presidential election on July 9 started yesterday, with frontrunner Mr Joko Widodo leading Mr Prabowo Subianto not only in opinion polls, but also in the campaign budget. Read more of this post

Economic growth in the northern Chinese city of Taiyuan, Shanxi province, has crashed to zero from 12 percent in one year on coal bust

China City Crash-Lands to Zero Growth on Coal Bust

Read more of this post

Gupta Becomes Billionaire as Havells Climbs to Record

Gupta Becomes Billionaire as Havells Climbs to Record

Read more of this post

What it Means for Prem Watsa’s Acquisition of Thomas Cook India

What it Means for Prem Watsa’s Acquisition of Thomas Cook India

by Ankur ShahJune 04, 2014, 1:00 pm

June 4, 2012

On May 21, 2012 Prem Watsa, who is also known as the ‘Warren Buffett of Canada’ bought a 76.81% stake in Thomas Cook India for INR 50 per share. Admittedly he got a good deal by purchasing the shares at an 18% discount to the closing price on the last trading day before the deal was announced. Although pure value investors don’t try to time the market, I do think it was a brave decision to purchase a travel company during the onset of a renewed global recession. Furthermore, India’s 5.3% 1st quarter GDP print, the lowest in the past nine years, makes me even more cautious about the current fragile state of the market. Regardless, a true value investor is buying when others are selling. I just think that there is a lot more selling to come. But I digress. Getting back to the point, there is still an opportunity for you make money from this deal even though it’s already been announced through merger arbitrage. Read more of this post

Charles De Vaulx Finding Value In China

Charles De Vaulx Finding Value In China

by VW StaffJune 03, 2014, 3:47 pm

Charles de Vaulx’s semi-annual IVA Funds letter to the shareholders from the portfolio managers.

Dear Shareholder,

Over the period under review, October 1, 2013 to March 31, 2014, your Funds continued to deliver strong absolute returns, in excess of inflation and nominal GDP growth. Importantly, this result was achieved with less than 55% invested in equities, on average, and a large cash position throughout the period that resulted in good principal protection in times of market weakness, particularly in January of this year. Read more of this post

Fed may shun global risk rules banks spent billions to meet

Fed may shun global risk rules banks spent billions to meet

11:56am EDT

By David Henry and Emily Stephenson

NEW YORK/WASHINGTON (Reuters) – The Federal Reserve may scrap elements of international measures aimed at assessing bank health in favor of imposing its own rules, frustrating bankers who have spent billions of dollars retooling their books to meet global standards.

Fed officials are concerned that parts of a key tool that regulators have developed to measure banks’ riskiness—known as “Basel III capital rules” — are flawed and can be gamed by the companies. Read more of this post

“Without Indonesia, it (AEC) would be a half-baked grouping,” CIMB’s Nazir said. Indonesian delay in embracing AEC surprises CIMB chief

Published: Wednesday June 11, 2014 MYT 12:00:00 AM
Updated: Wednesday June 11, 2014 MYT 6:57:21 AM

Indonesian delay in embracing AEC surprises CIMB chief

BY M. SHANMUGAM

“Without Indonesia, it (AEC) would be a half-baked grouping,” Nazir (pic) said.

KUALA LUMPUR: A leading banker has expressed surprise on the delay by Indonesia, which is the economic powerhouse in the region, on embracing the concept of Asean Economic Community (AEC) that among others entails the opening up of the capital markets of the countries in the region. Read more of this post

Taipei’s cost of living ranks 26th in Asia, 89th globally; Hong Kong ranked eighth in Asia and 29th globally, overtaking Singapore’s ranking of ninth place in Asia and 31st place globally

Taipei’s cost of living ranks 26th in Asia, 89th globally

Wednesday, June 11, 2014 – 10:07

The China Post/Asia News Network

TAIPEI – Taipei’s cost of living ranked 26th in Asia and 89th globally, according to a report released by ECA International, a company that specializes in researching living conditions around the globe.

Taipei’s ranking dipped one place in the Asian region and dropped 11 places globally. While the cost of living in Taipei only dipped slightly compared with other Asian countries, fluctuations in exchange rate resulted in a larger drop on a global perspective. Read more of this post

Jane Mendillo, head of Harvard University’s $33 billion endowment, is leaving after a six-year tenure that started with the financial crisis and more recently saw investment performance that lagged behind some peers

Harvard Management Head Mendillo to Step Down

Search for Mendillo’s Replacement is Under Way

ROB COPELAND

Updated June 10, 2014 8:57 p.m. ET

Jane Mendillo, head of Harvard University’s $33 billion endowment, is leaving after a six-year tenure that started with the financial crisis and more recently saw investment performance that lagged behind some peers. Read more of this post