Regional News

Increasing Regulations For Asian Property Market Likely

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Asia’s property markets are set for a continuous slow tightening of regulations in coming months as authorities try to slow down rising home prices without causing a crash.

Last week Hong Kong announced its fifth implementation of regulations this year as it attempts to reduce property speculation. China, Taiwan, Malaysia, Thailand and Singapore have also implemented more stringent regulations in recent months.

But investors’ interest in property continues to grow and prices continue to rise. That will likely lead governments to increase mortgage requirements again, increase land supply and – in China – to initiate even more property taxes.

Tim Condon, the research manager at ING Financial Markets in Singapore said that “My baseline scenario is we will need more measures – the current set worked but their impact is transitory.”

“We’re entering into unchartered waters because just one set of the measures introduced so far this year would have worked in previous times – but what we have right now are markets filled with liquidity and historically lower interest rates,” said Donald Han, vice chairman at Cushman & Wakefield.

According to property broker Knight Frank, Hong Kong residential prices rose by 25% from mid-2009 to mid-2010 while those in Singapore increased by 37%.

Cross-Shareholdings At Lowest Rates Since 1991: Japanese Banks Sell-Off Shares

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Japanese Companies reduce their cross-shareholdings of allied companies to the lowest level since 1991. Banks sell shares due to narrower global capitalization requirements.

In the year that ended March 31, stocks owned with corporate allies dropped to 4.9 % of the nation’s shares. This represents a two-point drop from the previous year and the lowest rate since 1991.

Keisuke Nitta, a strategist at NLI Research Institute, explained that “Cross-shareholdings held by banks are based on relationships with clients, so it doesn’t mean that the shares they hold are ones that are likely to grow.”He continued “A lot of the superior shares have already been sold off. It means a lot of unattractive stocks are still on their books.”

Banks are positioning for new regulations decided upon by the Basel Committee on Banking Supervision which require Banks to double the Tier 1 capital reserve. Tier 1 capital includes cash and equities. Therefore, volatile and poorly performing stocks will lower a bank’s ability to lend.
Since the International Accounting Standards Board issued guidance last year that the current market value of shareholdings are required to be included in financial statements, companies are reducing their holdings.

Hidehiro Tomioka, who manages about $1.4 billion at the Japanese asset management u_wpnonce=b29c1b17d4

Nikkei Falls 0.84 % Due To Geopolitical Tension And Eurozone fears!

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Tokyo stocks fell on Wednesday and the Nikkei stock index lost 0.84 percent, as tensions arose over geopolitical strife over conflagrations in Korean and the instability of the eurozone after Ireland’s debt-rating cut stressed investor feelings.

Standard & Poor’s downgrading of Ireland’s long-term debt caused fear of a domino effect in the eurozone and lowered investor confidence.
Adding to investor uneasiness are increasing tensions in Korean after artillery exchanges between the Republic of Korea (ROK) and the Democratic People’s Republic of Korea (DPRK).

Japan’s nearness to the conflagrations lead to share dumping in the Japanese market, according to some analysts.

Tokyo Electron fell 2.1 %, down to 5,150 yen. Mitsubishi Corp. lost 1.4 percent to 2,115 yen. Mitsui & Co. dropped 0.8 percent to 1, 330 yen.

One World Ventures, Inc.

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One-World-VenturesTutamen (HK) Ltd., the Chinese product development, consulting services and strategic management resource company has created the holding company, One World Ventures.

OWVI invests in a range of technologies and leverages its long experience in Asia to develop a company which crosses international boundaries. It bridges the gap between the US and China:
• 1WorldAuction is an online platform for the exchange of products and services. It enables individuals and businesses to avoid marketing costs.
• 1WorldCard offers a flexible debit card for global ATM and point of sale use. It is a inexpensive alternative to a bank account and is great for under-served markets.
• Vonsi Technology Inc. is a systems integrator. It supplies complete PBX, VOIP, IP and IP-based call center solutions.
• Inter Solar Tech, Ltd. markets renewable power generation products within the PRC and EU. It plans to expand to global operations and has successful experience in heat pipe, wind power and photovoltaic technologies.

1WorldAuction and 1WorldCard offer a unique, combined solution for e-commerce methods.

Hong Kong Curbs Real Estate Investments

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Hong Kong strengthened a yearlong effort to prevent increases in home prices through additional taxes and larger down payments. This came one day after the International Monetary Fund warned that asset inflation may damage Hong Kong’s economy.

Financial Secretary, John Tsang, said that homes sold within a half a year of  purchase will have to pay a 15 percent duty stamp after Nov. 20. The required down payments for houses costing HK$12 million ($1.5 million) or more will increase from 40 percent to 50 percent. A stock gauge of Hong Kong developers fell for eight days out of nine before the announcements.

Korean Industrialists Awarded for innovation and management quality

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Hyundai Steel’s Woory Industrial Co. and KOMOS will receive the top award in the National Quality Management Award ceremony which will be held in Seoul this Tuesday.

Chief executives of Seoul Commtech Co. and Korea South East Power Corp. and will be awarded the esteemed Gold Tower Order of Industrial Service.

The National Quality Management Award is awarded to individuals and organizations who have made important contributions to promoting management quality. These awards are overseen by the Korean Standards Association and organized by the Ministry of Economic Knowledge which is the Korean Agency for Technology and Standards.

Woory Industrial and KOMOS manufacture automobile parts. The former specializes in sensors and parts related to temperature control equipment. KOMOS produces steering wheels and related equipment.

The data shows that the stock prices of the companies that have received the award between 2005 and 2009 have increased at a higher rate than the average for the benchmark KOSPI.

According to available data, award winners’ stocks rose 5.78 percent more than the KOSPI average during the half year following the award. The rate increased to 11.77 percent for the year after they received the award.

Korea South East Power Corp. chief executive Jang Do-soo and Mr. Oh Se-Young, chief executive of Seoul Commtech Co. will receive these rewards.

ZNet Technologies Wins The Deloitte Technology Fast 500 Asia Pacific Award For 2010

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Munesh JadounZNet Technologies is one of India’s fastest growing web hosting companies. Recently, ZNet advanced to a great position in Asia by winning the Deloitte Technology Fast 500 Asia Pacific award for 2010. The Technology Fast 500 Asia pre-eminent technology awards program is a rating of Asia’s 500 fastest-growing technology companies rated by percentage of revenue growth during the last three years. This is the 9th year of the Technology Fast 500 program. The program, including the accompanying CEO Survey analysis finds the best companies and most important trends in the Technology, Media & Telecommunications (TMT) industry.

Munesh Jadoun, CEO ZNet Technologies, said that “ZNet has reached a remarkable position in Asia by winning this prestigious Deloitte Technology Fast 500 Asia Pacific 2010 Award after winning Fast 50 India 2010 Award. I am happy to see ZNet growing in not only the number of customers but also in terms of awards & appreciations. I found myself blessed with such a strong team that helps ZNet in achieving heights.”

ZNet is now on the way to becoming a global company through its new project znetsupport.com. ZNetSupport offers a 24×7 Server, Technical & Sales Support for clients trying to reach employee quality workers.

Japan’s Solar Frontier’s factory will become the world’s largest solar-cell factory.

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In July 2011, when Solar Frontier KK’s new solar-panel plant starts operating at full capacity, this obscure company will become a major player in the rapidly growing solar-power industry. Its factory will be able to produce more photovoltaic cells than any plant in the world.

Solar Frontier ‘s parent company is one of Japan’s biggest oil companies, Showa Shell Sekiyu KK. Large oil companies like Royal Dutch Shell PLC and BP PLC and are cutting back investments on solar energy. However, in July 2011, the Japanese oil refiner will be opening its 100 billion yen (roughly $1.25 billion) solar-panel factory in Miyazaki, south Japan.

According to Shigeaki Kameda, Solar Frontier’s chief executive, “We know that the oil industry is not disappearing today or tomorrow. But if we don’t take this chance on solar now, we feel like we won’t get another chance.”

According to the Japanese research firm Fuji Keizai, total sales of solar panels are estimated to reach 8.998 trillion yen worldwide in 2025. This is more than a five times increase from last year’s sales. CIGS technology, which includes gallium, is forecast to grow the most, rising 26-fold to 900 billion yen.

After Sealing Ssangyong Deal, M&M To Expand Business In The US

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Indian auto manufacturer, Mahindra and Mahindra (M&M), intends to expand its automobile marketing in the US after completing the acquisition of a majority stake in the South Korean car company Ssangyong, according to a company official.

“We have made an agreement with Ssangyong Motor to purchase a majority share in the South Korean SUV-manufacturer to expand our business in international markets. We hope to enter the US market, after the (Ssangyong) deal is complete,” said a senior officer in the Finance and Strategic Development Department of M&M.

There are a few points which have yet to be resolved and the deal is expected to be sealed by early 2011.

Mitsubishi UFG To Purchase Royal Bank of Scotland Project Finance Loans

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Mitsubishi UFJ Financial Group Inc. has negotiated an agreement to purchase Royal Bank of Scotland Group PLC’s (RBS) project finance loan portfolios for an undisclosed amount. This is a step that will enable Japan’s largest bank to expand its lending operations in the Middle East and other new markets.

The major loan assets involved are essentially loans for infrastructure projects in Africa, Europe and regions where the Tokyo-lender doesn’t have a strong presence in project finance. Mitsubishi hopes to enter these markets. The RBS portfolios are worth about GBP 3.8 billion

Katsunori Nagayasu , MUFG President said that “We want to use (the purchase of RBS’s project finance assets) as an avenue for pursuing further overseas growth.”

Over the past few years MUFG has participated in international transactions, including a $9 billion purchase of a 21% stake in Morgan Stanley two years ago.

MUFG’s purchase of the project finance ventures also demonstrates that Japanese banks are going after overseas growth to deal with limited potential in Japan.