BusinessMirror October 13, 2019

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BusinessMirror TOWER OF (TOURISM) POWER ROTARY CLUB OF MANILA JOURNALISM AWARDS

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A broader look at today’s business n

Sunday, October 13, 2019 Vol. 15 No. 3

2018 EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

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PUERTO PRINCESA MAYOR BARES AMBITIOUS MULTIBILLION-PESO PLAN TO BUILD TALLEST EDIFICE, DEVELOP SIX STATE-OWNED PROPERTIES THE Prinsesa ng Baybay, a fiber-glass sculpture by Ronel F. Roces, welcomes seafarers to Puerto Princesa, named after the mythical princess. NAMHWI KIM | DREAMSTIME.COM

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By Roderick L. Abad | Contributor

RUE to its erstwhile recognition as “Unos de los mas bellas,” or one of the most beautiful towns in the Philippines during the Spanish era, Puerto Princesa keeps on bringing pride to the “Pearl of the Orient” as it endeavors to fulfill an ambitious project that will give her another crown jewel, besides its wonderful underground river.

The proposed Princesa Tower, as it is called, is envisioned as a symbolic towering structure the entire world will look up to (and the tallest structure of its kind) at 680 meters high, taller than the Grand Hyatt, and even the Trump Tower in Manila. “When we first mentioned it, a lot of Puerto Princesans were laughing at us, and they were saying that we are fools to think of putting up one of the tallest towers in the world,” Mayor Lucilo R. Bayron recalled during the first Puerto Princesa City Business Forum held recently in Pasay City.

Amid criticisms, the mayor is determined to pursue the project after raising a total of P27.55 billion worth of investments pledged by 12 local and foreign companies during the event. “The Philippines cannot boast of any iconic building. They have one in Malaysia and in several parts of the world, but none for the Philippines. So the only place where you can build a tall tower that will be safe is in Puerto Princesa,” he said, adding that the city is not prone to earthquake, typhoon and even volcanic eruptions. The proposed 128-floor edifice

forms part of the proposed Sta. Lucia Environmental Estate, one of the six state-owned properties that the city government of Puerto Princesa plans to develop into tourism, agriculture and commercial hubs that will not only spur economic activities, but also generate livelihood and employment opportunities. “We are offering all these properties for partnership, either by joint venture, public-private partnership [PPP], or long-term lease,” Bayron said.

Pawikan home

SITTING just across the bay of

Puerto Princesa, the sprawling 1,702-hectare estate stands to be a home also to the Pawikan International Convention Center (PICC). Its conceptual design, highlighting six exposition hubs that resemble the sea turtle (one of the marine creatures the city is famous for), will certainly break the prestige of all iconic structures in the world. With a capacity to sit 35,000 people, it seeks to cater to the growing meetings, incentives, conferences and exhibitions, or MICE, market. Continued on A2

Trouble is brewing in the darkest corner of China’s shadow banking

A

NALYSTS on the lookout for China’s next financial shock are training their sights on the least regulated corner of the nation’s sprawling shadow banking system.

Their concern centers on socalled independent wealth managers, which have expanded rapidly in recent years by selling high-yield products to affluent investors. Largely untouched by a government clampdown on nearly every other form of non-bank financing, the industry has grown from obscurity into a major source of funding for cash-strapped Chinese companies. The worry now is that products arranged by independent wealth managers will face mounting losses as China’s economic slowdown deepens and corporate defaults surge. Confidence in the industry has plunged since July, when Noah Holdings Ltd. said that 3.4 billion

yuan ($477 million) of credit products overseen by one of its units were exposed to an alleged fraud by a Chinese conglomerate. USlisted shares of Noah, one of China’s biggest independent wealth managers, have tumbled 38 percent in the past three months. “I wouldn’t be surprised to see some losses,” said Jasper Yip, Hong Kong-based principal of financial services at Oliver Wyman, a consulting firm. “More borrowers will run into payment difficulties in a slowing economy.” The repercussions could be significant if losses on such products fuel a broader retreat from highyield assets in the world’s secondlargest economy. One factor that

PESO EXCHANGE RATES n US 51.6890

THREE iconic skyscrapers of Pudong’s financial district: the Jinmao Tower, the Shanghai World Financial Center, and the Shanghai Tower, seen from street level in Shanghai, China. QILAI SHEN/BLOOMBERG

concerns analysts: Because the products are opaque and regulation is minimal, nobody knows exactly how much money is at risk. What’s clear from financial statements published by Noah and Jupai Holdings Ltd., another USlisted independent wealth manager, is that the industry has experienced breakneck growth. Assets under management at a Noah unit that structures its own products climbed 40 percent to 169.2 billion yuan in the two years ended December 2018—a period when the broader Chinese shadow banking system shrank because of tighter regulations. Jupai’s assets under sole or shared management have more than quadrupled since 2015 to 56.8 billion yuan, according to the company. Official industrywide figures don’t exist, but Noah estimated in 2016 that China had upwards of 8,000 independent wealth managers. While the firms offer a wide variety of investments including Continued on A2

n JAPAN 0.4788 n UK 64.3270 n HK 6.5916 n CHINA 7.2648 n SINGAPORE 37.6029 n AUSTRALIA 34.9469 n EU 56.8993 n SAUDI ARABIA 13.7815

Source: BSP (October 11, 2019 )


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BusinessMirror October 13, 2019 by BusinessMirror - Issuu