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Asia Pacific the Most Trusted Region in the World

CNBC Asia Pacific
Wednesday, 16 Feb 2011 | 6:20 PM ET

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

A big hello to our viewers across China.

I'm Saijal Patel and you're watching "Asia Market Daily".

Strong economic growth may be a good thing for Asian nations, but a new report shows the strong rebound in the region is putting pressure on already tight rental markets in many cities.

A study by ECA International shows Tokyo is the most expensive place in the world to rent a two bedroom unit.

Hong Kong ranks third, while Singapore comes in fifth in the global ranking.

Within Asia, Shanghai ranks fifth, while Beijing is the tenth most expensive city.

Lee Quane of ECA International says a lack of supply of affordable housing is also fuelling rental increases.

(SOT) Lee Quane, ECA International Regional Director, Asia:

"We have seen a large amount of property come on the market. The high end, the luxury over the course of the last 12 months. However when that's come online, that's actually been retained. It's been bought by purchasers on the Mainland who, they've just held onto it. So property that's come on to the market it hasn't gone onto the rental market."

Elsewhere, as details about the merger between Deutsche Boerse and NYSE are made public, the Singapore Exchange is ramping up the rhetoric, to try to get it's near 8-billion dollar bid for the ASX across the line.

The SGX is now offering the Australian exchange more seats on the board, but concerns in Canberra still remain.

Regulatory hurdles aside, Khiem Do of Baring Asset Management Hong Kong, says stock exchanges "have a lot of cash, and they need to do something with it".

(SOT) Khiem Do, Head of Asian multi-asset for Baring Asset Management:

"I think that basically there will be a lot of M&A taking place over the next 12 months because money is not expensive, and companies have been building a lot of cash over the last few years"

Commenting on speculation the Hong Kong Exchange is planning a tie up with the Chicago Board Options Exchange - or the CBOE - Do says there are many factors to consider.

(SOT) Khiem Do, Head of Asian Multi-asset for Baring Asset Management:

"It depends on which M&A it is going to do. I think the best one is Mainland China. So if it can do a deal with Mainland China, given that the fact that the trading volumes and value of turnover in the Shanghai and Shenzhen stock exchanges have been so fantastic."

Meanwhile, trust in companies is important, and a new report shows trust in Asian companies is growing.

The 2011 Edelman Trust Barometer Study shows Asia Pacific has now become the most trusting area in the World.

Edelmen says the reason for Asia Pacific performing better than the West is because it escaped the worst of the global financial crisis.

Within the region, technology, telecommunications and automotive are the three most trusted industry sectors.

And while banks are well trusted in the region, they're not as highly regarded globally.

(SOT) Alan Vandermolen, president and CEO of global practices and diversified insights businesses at Edelman:

"It's interesting the banking point. Banks in Western Europe and the United States are down because of the spectacular regulatory failure and operations failures that have led to the global financial crisis. In Asia pacific, banks have high levels of trust. In particular those banks that are invested by government, the domestic Chinese banks and the domestic Indian banks."

Thanks for watching the latest "Asia Market Daily".

I'm Saijal Patel from CNBC.

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