New York, U.S.A. — Asian institutional investors planning to increase investments in non-Asian companies express a preference for the equities of companies that draw revenue from Asia or have a secondary equity listing on a local exchange, according to a survey conducted by BNY Mellon, the global leader in investment management and investment services. The survey, titled Asia’s Evolving Investment Landscape, is BNY Mellon’s first-ever formal study of this category of investors.

Recognizing Asia’s potential as a source of investment, BNY Mellon undertook a survey to gain further insight into current investment practices in the region and conducted 40 in-depth interviews with investors in Hong Kong, Singapore and China, representing more than US$60 billion in equity assets under management.

The report focused on these locations as they are the primary destinations for companies considering secondary equity listings. Investors provided views on their need for portfolio diversification, their appetite for global equities, and the potential opportunities in these markets for global equity issuers.

“We’ve known for years that ‘home market bias’ to invest in domestic companies is more pronounced among Asian institutions, and that there’s a strong desire to correct that,” said Michael Cole-Fontayn, CEO of BNY Mellon’s Depositary Receipts business. “Now, we can see how ripe the opportunity is for global issuers and how they can increase their chances of cultivating ties to investors in Asia.”

The report focused on three types of investors: mainland Qualified Domestic Institutional Investors (QDIIs); Hong Kong– and Singapore–headquartered investment firms; and Hong Kong– and Singapore–based subsidiaries of global asset management firms.

The study uncovered a strong desire among institutional investors in these markets to diversify more globally their equity holdings. Nearly half (47%) plan to increase investments in companies domiciled outside their home market over the next one to five years. They cited client requests, portfolio diversification, and opportunities for growth as factors motivating them to look abroad. “We are moving in a direction to increase the rate of investment outside of Asia,” said a survey respondent from a Hong Kong-headquartered investment firm. “We are striving to increase our global mandate.”

BNY Mellon found that each additional percentage point in global allocations of Asia-based institutional portfolios potentially equates to $7.3 billion in equity assets. This figure underscores the substantial opportunity for global issuers as the portfolio allocations of Asian institutions fall in line with peers in North America and Europe that invest larger proportions in equities of non-domestic companies.

Several factors impact on a global issuers’ decision to raise equity capital in Asia, the study found. The investors surveyed were particularly open to investing in companies that derive revenue from Asia, with 54% saying that it was a key criterion. In addition, a listing on a regional exchange universally increases both the awareness of non-Asia-domiciled companies and the likelihood that institutions in Asia will invest in them. More than half of the investors surveyed (53%) said a secondary listing on an Asian exchange increases the chances they will invest in foreign-domiciled companies.

“I do not differentiate between the Hong Kong, Singapore and other Asian exchanges. The company simply has to be listed on one of the regional exchanges for us to invest in it,” said a respondent from a Hong Kong-based subsidiary of global asset management firm.”

“There’s a substantial overlap of interests between investors in Asia looking to diversify their portfolios and global companies looking to raise capital,” said Guy Gresham, New York head of the global IR advisory team in BNY Mellon’s DR group. “A secondary listing and open investor communications policy go a long way in helping these companies gain access to long-term equity capital in this part of the world.”

Additional findings of the survey include:

• Overall, 62% of institutions surveyed said a local exchange listing increases their awareness of a company.
• Hong Kong- and Singapore-based investment firms were the most definitive in stating that a local listing increasing their likelihood of investing in a foreign company, with 57% responding affirmatively and 62% saying that a listing in Asia increases their awareness of a company.
• Over half of the investment community surveyed (61%) does not definitively differentiate between the regional exchanges in Asia where foreign companies have secondary listings.
• More than half of investors (55%) are not required to meet with senior management of foreign companies before making an investment, and many report that as long as they can correspond with management throughout the year, a face-to-face meeting is not vital to their decision-making process when considering investment opportunities outside of Asia.
• Over two-thirds (70%) of investors surveyed would like to meet management teams at least semi-annually for meetings and informational updates, and 97% would like to correspond with management at least once a year.

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Last week, well-known activist Li Wangyang was found dead in his hospital room. Protests and controversy have stirred up those who have loved and supported the activist after speculations of suicide have been questioned.

According to the ChinaRealTimeReport, “Mr. Li’s body was discovered hanging from a window in the hospital by family members on June 6. Photos of his corpse, which circulated online, appeared to show his feet touching the ground. Those images, plus testimony from friends about Mr. Li’s mood prior to the discovery of his body, have prompted skepticism over whether the death was truly a suicide.” As authorities are claiming Li committed suicide, outrage has been expressed by several protestors in Hong Kong as well as Li’s family and friends. A lot of the controversy over the way Li died is caused by the fact that he was interviewed by a Hong Kong-based news station just four days before his death. Li spoke out about the brutal treatment he received while in prison and according to his closest friends, that treatment is the reason that Li was nearly completely blind and deaf when he died.

While authorities say it was suicide, those that knew him well are completely against the idea. Huang Lihong, a fellow Hunan activist, said she last spoke with Mr. Li on June 3, three days before he died.

“At that time, he was still very well. We chatted very pleasantly. He loved life and had a lot of plans, so I’m convinced he absolutely couldn’t have committed suicide.”

Additionally, Zhang Shanguang, one of Mr. Li’s close friends, spoke out about the accusations of Li’s suicide by stating, “Li was extremely optimistic and strong, his disposition was unyielding. He had experienced much suffering and never thought of committing suicide.”

Wangyang was a Chinese dissident and labor rights activist and a member of the Workers Autonomous Federation. In spite of the Chinese government, Wangyang created a labor union in 1983 and for the next six years several protests ensued causing numerous deaths all over China. As a result, Li organized a memorial for the victims who had died. He was then arrested in 1989 on charges of subversion, counterrevolutionary propaganda and incitement. He was sentenced to an original ten years of imprisonment, but after appealing his sentencing, he was ordered to 13 years and ended up serving a total of 21 years in prison. The entire time of his sentence term, Li was ordered to hard labor, despite his deteriorating health.

Li was released from prison in May of 2011 and sent to a medical health facility to be treated for his health conditions. Li suffered from both diabetes and heart disease. Li was found dead on June 6, 2012 in his room at the Daxiang Hospital.

A petition launched by fellow Chinese dissidents, requesting a ‘credible investigation of Li’s death’, has already collected 5,000 signatures from Chinese mainland, Hong Kong and Taiwan and continues to grow rapidly.

City of Shaoyang officials are declining to make any statements at this time, claiming the case is still being processed.

Those who believed in the same freedoms, values and justice the same way that Li did and defended to his death, will continue through his legacy.

Image Courtesy of  Leung Ching Yau Alex

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St. Petersburg, Russia – On 25 April, 2012 the St. Petersburg International Economic Forum with the support of the Ministry for Economic Development of the Russian Federation, RTS group and Micex group will provide a unique platform for discussions, for the first time organized abroad and entitled “The Road to St. Petersburg.

The Expanding Silk Road: Russia and East Asia in the 21st Century”. The event will take place in Hong Kong and gather 120 international participants, representing government and business leaders not only from Russian and Asian countries but from around the world. It is planned to organize this event annually.

The event discussion will host a range of prominent panelists, representing Russian and Asian political and business leadership as well as international investor community, and will be moderated by Bernard Lo, News Anchor, CNBC Hong Kong.

The panelists will include Sergei Sinkevich, Vice President, MICEX-RTS, Sean Glodek, Managing Director, Russian Direct Investment Fund, Hu Shuli, Editor-in-Chief, Caixin Media, Victor Huang, Partner, PwC Hong Kong, James Pearson, Managing Director and Global Head, Financial Institutions Strategic Coverage, Standard Chartered Bank, Sergei Beliakov, Head, Department for Investment Policy and Development of Private/Public Partnership, Ministry of Economic development of the Russian Federation, Jonathan Schmidt, Strategic Advisor, SPIEF, Andrey Zokin, Executive Vice-President, Gazprombank OJSC.

Participants of the event will explore the potential for Russia to expand trade and investment in Asia and further regional economic integration.

In a wide ranging interactive debate, panelists will share their views about Asia’s potential role in investing in and developing Siberia to unlock resource and industrial development in East Russia, will discuss the Russian firms enhancing investment and trade in Asia. The results, suggestions, ideas of the session will be included to the programme of St. Petersburg International Economic Forum where participants continue Russia and East Asia dialogue.

More information:

The St. Petersburg International Economic Forum (SPIEF) established in 1997 is a leading international economic and business forum held annually in Russia. Since 2006 SPIEF is held under the patronage of the President of the Russian Federation.

http://2012.forumspb.com/

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Hong Kong has been ranked the world’s freest economy for the 18th consecutive year in the 2012 Index of Economic Freedom, released on January 12 by The Heritage Foundation and The Wall Street Journal.

The Financial Secretary, John C. Tsang, welcomed the Heritage Foundation’s high regard of Hong Kongas the world’s freest economy.  He stated that the government was determined to uphold economic freedom in Hong Kong, which was the cornerstone of sustained economic stability, growth and prosperity.

“We see the role of the government as that of an active facilitator.  We provide a business-friendly environment where all firms can compete on a level-playing field,” Mr. Tsang said.

“We have sound regulatory regimes in place to ensure the integrity and smooth functioning of a free market.  We also strive to remove impediments and provide support in an open and equitable manner to facilitate industries tapping into new markets or new growth industries.”

On a scale from zero to 100, Hong Kong scores 89.9, well above the world average of 59.5.

The index, which ranks the degree of economic freedom of 179 economies, evaluates economies in the following 10 categories: labor freedom, business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, and freedom from corruption.

Among the 10 categories assessed, Hong Kong ranks first in financial and trade freedom, second in investment freedom and property rights, and third in business freedom.

Hong Kong is ranked first out of 41 economies in the Asia–Pacific region.

Hong Kong Commissioner to the United States, Donald Tong, welcomed the index’s findings, saying: “I am happy to learn that Hong Kong’s adherence to a free-market philosophy, together with its business-friendly environment and sound regulatory regimes, has once again garnered such accolades for the 18th consecutive year.  Economic freedom underpinned by a commitment to the rule of law is the bedrock of our success.

“We do not take such recognition for granted and are always working to enhance Hong Kong’s competitiveness and maintain its standing as a global business, financial, and logistics center.”

The index commended Hong Kong’s tax system as simple and efficient, and considered the city’s monetary stability well maintained.

It further complimented Hong Kong’s high-quality legal framework, which “provides effective protection of property rights and strong support for the rule of law.”  In addition, the index found that the city’s regulatory efficiency and openness to global commerce strongly support entrepreneurial dynamism.  Moreover, there is little tolerance of corruption.

2012 Index of Economic Freedom
www.heritage.org/Index/ranking

Ho Philip / Shutterstock.com

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Live Nation Entertainment announced recently it has opened a concert promotion office in Seoul, South Korea.

This marks another important step in Live Nation’s international expansion into new markets. South Korea is the 13th largest economy in the world, and the 3rd largest in the Far East, with growth of 6% in 2010. It also ranks as the 12th largest music market in the world, which is largely attributable to K-Pop, whose popularity is now spreading rapidly to other markets outside of South Korea and the Far East.

“We see great opportunity for concerts around the world and our move into South Korea represents another step in the growth of this business,” stated Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. ”Our strategy is to continue our international expansion into under penetrated regions and identify new markets to deliver our unique live experience product.”

“With a growing interest from international artists to perform in South Korea, this is a natural step for us to be able to serve artists and fans better in Korea,” said Alan Ridgeway, President of Live Nation International and Emerging Markets. ”We also have plans to work with Korean artists both in Korea and internationally to meet the expanding demand around the world for the K-Pop phenomenon.”

“Live Nation Korea will further enhance the touring opportunity for both international and local artists in the Asia region,” says Mats Brandt, President of Live Nation Far East. “Live Nation Korea will, together with our existing offices in Hong Kong, Singapore and Beijing, expand Live Nation’s network and capabilities in the region.”

Live Nation Korea will be a fully owned subsidiary of Live Nation, and will be led by Steven Kim and Yongbae Cho, who, together, have more than 20 years’ experience within both the Korean and international live music and promotion industry.

Chuwit Srisomwong / Shutterstock.com

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Yes, we all know this: right now is the best time of the year. For many of us in the northern hemisphere, the flowers are blooming as we’re taking out shorts and tank tops from the back of our closet after a long cold winter. The Caribbean’s, especially, are known to be a winter escape, packed with tourists from North America and Europe during the months of December through February. For many places along the Equator, it’s currently a storm season- making it difficult for water sports, and more importantly, possible delayed or canceled flights.

These islands on the list below come alive in summer, when events and major festivals sprung up while restaurants and cafes are bringing out chair and tables for outdoor seating. The weather just couldn’t be better.

Vancouver Island, British Columbia, Canada

Being the largest island off the west coast of North America, Vancouver Island is composed of many different ecosystems making it one of the best places for outdoor activities. Pacific Rim National Park Reserve, for instance, allows you to explore the incredible wilderness.  Central Island area allows visitors to enjoy water activities and fishing, since this region is primarily made up of sandy beaches, ocean, and lakes. If you’re more interested in the local gourmet scene, then head to the Cowichan Valley, where there are plenty of wineries, farmer markets, and fresh seafood docks. More of a city vibe fan? No problem, Victoria, a city located in the South Island, has all the things you’re looking for.

Iceland, Europe

Iceland, considered to be Europe’s largest national park, is indeed a great destination for both summer and winter. Moreover, it is an ideal place for photographers, painters, or those who are interested in a beautiful, unspoiled landscape. You won’t find much development in Iceland, comparing to major European cities, yet it has enough metropolitan city atmosphere for a comfortable and convenient stay as there are plenty of restaurants, hotels, bars, and attractions. Once in Iceland, try not to miss its famous thermal swimming pools or spas. Activities such as glacier trekking, whale watching, midnight golfing, and salmon fishing are also easily reached from Iceland’s capitol, Reykjavik.

Hong Kong, China

What could have been a better time to visit Hong Kong if not summer, when the goods go on sale and events are popping up everywhere. The Hong Kong Dragon Boat Carnival is one of the most anticipated annual festivals in the city. It’s a three day competition during mid-June in which each team races their dragon boat. Here, spectators can enjoy a party scene, where cold beverages and tasty snacks are served. Not your thing? Other hot events are Summer Pop Live in Hong Kong, Lan Kwai Fong Beerfest, and Hong Kong Restaurant Week. Most people I know, even myself, tend to go to Hong Kong for unbeatable shopping deals and mouthwatering Hong Kong style dishes. Don’t miss out on a bowl of roasted duck noodle soup or Hong Kong style congee. “It’s certainly the type of place you go for good food and shopping, and not so much about nature and outdoor activities.”

Bora Bora, South Pacific

First island on this list that has the kind of sand and sea most of us would look for, transparent blue ocean and white sand beach. Why visit Bora Bora in summer? Well, since the island is in the southern hemisphere, our summer is their winter when the weather is at its best: less rain, lower humidity, and not crazy hot. Though never have been there myself, a friend of mine who visited this incredible place told me “No doubt, it’s beautiful. It’s a place for a complete relaxation, but it comes at a price. We stayed at a hotel where our bungalow is built over the water. Couldn’t have asked for a better honeymoon location” Here, visitors can enjoy endless water activities (snorkeling, diving, canoeing, jet skiing – really, you name it) or, you can explore the island on foot. If you’re a little bit more adventurous, don’t miss out on the shark and ray feeding excursion, which was said to be the most popular activity in the island.

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The People’s Republic of China is know worldwide as upholding strict censorship rules on all publicized material in the country. The country has also proved itself capable of censoring foreign opinions from penetrating national debates and to serve harsh punishment to anyone suspected of dissidence towards the state. Hong Kong was officially handed back to China from British colonial rule 14 years ago, but the city is still one of two special administrative regions, the other being Macau, which enjoys some form of autonomy. In the period of 50 years after the handover in 1997, Hong Kong will retain its citizen privileges, including less restriction on freedom of speech, while its system is being reformed for full incorporation into mainland China.

Jes Randrup, Danish correspondent for Jyllands-posten, took a look at one of the interesting side effects of Hong Kong’s status. He found that the special freedom enjoyed by the region has made the peninsula’s publishing companies an important mouthpiece for alternative viewpoints, controversial political material and other written material that are banned by Beijing. In an interview with Bao Pu, a political commentator and veteran human rights activist, he reported about the work that publishers are able to do under the ‘safety’ of Hong Kong law.

Mr. Bao is the owner of New Century Publishing and has since 2005 been one of the city’s most prominent publishers of non-fiction. “We contribute to a niche in Hong Kong which has been created by Chinese censorship,” Mr Bao explains, “Some subjects and writers are banned in mainland China and there is a range of things you know will not be tolerated so what do people do? They come to Hong Kong to look for publishers.” The best selling book from his repertoire was the sensational ‘Prisoner of the State’ – a memoir written from secret recordings of the former Premier Zhao Ziyang who was purged politically and put under house arrest following an internal dispute with the party leadership in 1989. Mr Zhao remained under house arrest until his death in 2005 and his name has been taboo since his ousting. Bao Pu secured the recordings from his father, Bao Tong, who was once the right hand of Mr Zhao and still lives under house arrest in Beijing.

Despite the book’s sensitive subject, it sold 120.000 copies and it is especially tourists from mainland China who take advantage of the market in Hong Kong, buying a lot of their otherwise banned political literature in the airport book stores. “We know that it is the buyers from the mainland who purchase many of the nonfictional books in Hong Kong. They constitute a significant market segment,” says Mr Bao.

But Bao Pu and others in his trade are also not afraid to admit that their business is not only to publish. Equally important is the message of their work – to challenge the Chinese state. “The censorship provides us with a form of mission. We exist to undermine the censorship. As long as it exists we will too.”

Mr Bao describes Hong Kong as a haven of information which is considered secret in the mainland. Under the 50-year agreement, Chinese leader have found it politically useful to feed the political discourse through Hong Kong during internal power stuggles. “The most important information comes from insiders in the party,” Mr Bao explains. “A number of articles are based on information which has been leaked by one of the wings in the party. It is leaked to writers in Hong Kong where control over the media is nothing like in China. It is very difficult to leak anything to the media in China.”

Despite the special freedom of speech enjoyed in Hong Kong, there are limitations. When Bao Pu announced his plan to publish a secret diary, said to be written by China’s most hated politician, former Premier Li Peng, Beijing mobilized a stop of the printing and seized the material under copyrights. Mr Bao is reluctant to talk about the incident but acknowledges that the future of freedom of speech in Hong Kong is bleak once the implementation of the Chinese mainland system is complete. “I am not sure how long the current situation can last,” the publisher asses.

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