Obama Urges Wen to Take More Action on Yuan
This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.
Japan's Nikkei finished the session off one percent while the Taiex fell almost half a percent, weighed down by the major tech stocks.
The Hang Seng though was hovering in positive territory in late trade.
Not such a great result in Australia, where the ASX 200 slipped 7-tenths of a percent .
BHP Billiton shares lost almost half a percent despite the Aussie miner clearing the first regulatory hurdle in its hostile bid for Canada's fertilizer giant Potash. BHP has been given antitrust clearance from the US Federal Trade Commission. But it still has to get the go ahead from Canada's competition watchdog, which is expected to be a lot tougher on the miner.
Still in the US, President Barack Obama has invited Chinese President Hu Jintao to visit America in January. The gesture follows his two-hour private meeting with Chinese premier Wen Jia bao in New York. Obama urged Premier Wen to take more significant action to appreciate the Yuan. The premier then responded by promising to continue with currency reform.
(SOT) Chinese Premier Wen Jiabao:
"Our common interests far outweigh our differences. In spite of the disagreements of one kind or another between our two countries, I believe these differences can be well resolved through dialogue and cooperation."
(SOT) U.S. President Barack Obama:
"I think it's going to be very important for us to have frank discussions and continue to do more work cooperatively in order to achieve the type of balance and sustained economic growth that is so important and that we both signed up for in the context of the G20 framework."
And there have no doubt also been some heated discussions in HSBC's boardroom... with Europe's biggest bank now scrambling to fill not one ... but two positions.
Sources say CEO Michael Geoghegan will step down at the end of the year, after losing out to Douglas Flint for the Chairmanship. Flint - who's currently the finance director - is said to be well respected amongst investors. The CEO position is likely to be filled by the head of its investment bank, Stuart Gulliver. But HSBC insists a decision hasn't yet been made on a new chairman.
Back to Asia, the world's biggest iron ore miner has revealed it's planning to list in Hong Kong.
Brazil's mining giant Vale says it expects to get regulatory approval before the end of the year. The shares will be listed in the form of depository receipts. Vale also plans to buyback 2 billion dollars in stock... and return a total of 6-billion dollars to shareholders within the next 12 months.
Still on Hong Kong, shares in medical device company Microport soared as much as 27 percent earlier today - on its debut. It's the 27th China healthcare related IPO this year - as investors warm to the sector's vast potential.
CNBC discovers the investment opportunities in China's healthcare sector.
China is aging fast-- in 20 years, it will have the world's oldest population. Beijing -- meanwhile, has made improving healthcare a priority after decades of pursuing industrial growth.
Larry Li, Managing Director, DFJ Dragon Fund:
"In the last 3 years, the healthcare spending growth rate is around 25 to 30%. We predict this growth rate will last for the next 10 years."
China is halfway into a 3 year, 850 billion yuan healthcare spending boost -- investors are taking note. China's farm sector is up 20% year-to-date while the benchmark lost 20%.16% of china's startup board listings are healthcare-related firms. Healthcare also attracted the second most venture capital investments in the first half.
Despite the vast potential of the industry, it's not an easy sector to invest in -- evolving regulations, and a fragmented market, are just some of the factors that scare foreign investors off.
"It's a very different business model here, you know in the US -- you invest in key technology, IP. In China IP is not the key issue, you care more about controlling the sales channel, how to do marketing."
You also have to be patient -- Larry Lie's fund -- had to wait for ten years to exit -- after investing in medical device maker Microport.
While medical devices, cro, medical services attract investor attention -- other segments are less popular. Medicine for 1.4 billion people, it's a $100 billion business, and it's the largest part of China's healthcare market, but it's also the segment that investors are least interested in.
China's farm market is 70-80% dominated by generics, price wars -is- the name of the game. That's why when former bms exec Philip Xiao co-founded his company -- he chose distribution rather than "true" farm.
Our approach was we will start distribution of international brands, an opportunity to get close to customers, to know their demands, over time we are able to aggregate some of the best products from around the world."
Despite the allure of going public, profex has no timetable to do so.
We would consider in the near future to expand our capital base, to be able to scale our business more significantly -- however we don't want to raise too much money that can potentially make us lazy and complacent.
As policy uncertainty hits china's property, banking, resources sectors, at least healthcare is assured of enduring government support.
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Well it's been a pretty lackluster week here in Asia, with many key markets closed for public holidays. thankfully, next week will be a bit more exciting...For more on what investors can expect out of India, I'm joined by CNBC's Reema Tendulkar...
And Reema what should we be looking out for?
Reema Tendulkar, CNBC Reporter, Mumbai:
"Thanks for that. We have an interesting week lined up next week. We have a mix of secondary market action. A couple of results, some macro data, and also the action is pretty lively in the primary markets. So let's start off with all the events we're watching out for.
On the 27th of September, SKS microfinance - which is the first microfinance company to be listed in India. Listed very recently, the stock has been doing very well. They will be announcing their quarterly numbers on 27th and also in the primary market space VA Tech IPO will be closing for subscription. On the 28th you've got Tecpro Systems and Ashoka Buildcon IPOs which will be closing for subscriptions. We'll keep your eye out on all of that to tell you what's the market that we have seen for these.
Also the 29th September, Mahindra Satyam will be announcing their numbers. This is the tainted company where there was a fraud. And 21 months after this fraud there was, the fraud had taken place, the numbers will be announced for the first time. The expectation is that FY 09 and FY 10 annual numbers will be declared. No quarterly numbers. But of course we'll have to wait. Very interesting stock has been pretty lively ahead of those numbers.
And on the 30th of September the revised consolidated FDI policy document is expected, as we told you the macro data.
And also the CPI inflation data for the month of August will also be detailed by the Labor bureau. That's what we're watching out here for you in India. With that it's a happy Friday to everyone.
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