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The efforts of the world's media giants to get into the Chinese market as they fail to captivate the Chinese audiences are discussed. They are pushing their brands, forming alliances with the Chinese partners and concentrating on market penetration than making money right now.

The marketing trends of the newspaper publishing industry are evaluated. In the midst of the severe competition surviving among several newspapers agencies, the innovative strategies adopted by some of the Asian newspapers to reach advertisers and readers are examined.

The worldEs largest media group AOL Time WarnerEs presence in China is examined, and reasons for its inability to gain a foothold in the country are discussed. The cultural, political and regulatory obstacles facing the group are outlined, and the scope for its various branches of media activities is examined. ChinaEs new 24-hour mainly English channel CCTV 9 is also profiled.

While ChinaEs sports industry has taken off with significant successes such as the Chinese soccer teamEs entry into the World Cup, the professional sports leagues still have a long way to go. The major role of television broadcasting rights in promoting the industry and reasons for its absence are discussed, the part played by government enterprises is examined and the future of the rapidly growing industry is looked at.

Many Asian exporters have not yet realized that the introduction of the single European currency on Jan 1, 1999, will have a significant impact on their business. The single European currency marks a dramatic shift in the world economic system and could form the basis for steady world growth in the coming decades. Asian businesses and governments will have to begin coming to terms with euros, and may also gain access to new sources of funding through a very large new euro market.

MBf Unit Trust Managers' Mac Overton performed best of three fund managers making selections for Asia because he was able to find a safe haven in Pakistan. He achieved a 16.7% return on his choice, while Daiwa International Capital Management's Shunsuke Omae chose to focus on Malaysia and was hit by currency and stock price falls. HSBC Asset Management's Chung Man Wing focused on Hong Kong which was less affected than other markets in the region though stock prices have fallen. He achieved a 6% return.

The economies of Southeast Asia are facing crisis, but the situation offers them the opportunity to take stock and make long-overdue reforms. Analysts believe that the governments could make a number of economic changes which would ensure long-term survival in the globalized economy. These include currency flotation, increased industrial competition, more freedom for central banks and more controls over other banks. However, the governments do not appear to be addressing these issues, preferring instead to concentrate their efforts on apportioning blame.

Singapore has launched a plan to produce a further 7,000 university graduates a year from 2000, and Malaysia has also passed laws to increase the number of college places. The rest of Asia is also short of skilled manpower, and the focus of attention has mainly been on specialists, but companies are increasingly seeking middle managers with finance and marketing skills. China in particular is experiencing pressure on the skilled labour market, due to years of explosive growth.

Fund managers have faced difficult markets in Asia as slower growth has led some markets to go flat and even fall. There was an average rise of 14% for Asian stock markets in 2nd qtr 1997, but this hides major differences. Strong performers include Hong Kong, while Thai stocks have dropped in price. Three fund managers asked for tips have selected three different markets, and they are Hong Kong, Malaysia and Pakistan. Chung Man Wing from HSBC Asset Management performed best in 2nd qtr 1997 when he chose Hong Kong, as he has chosen for 3rd qtr 1997.

The growth of cable and satellite television especially Satellite Television Asian Region (STAR) in Asian region has been described. By raising the advertising and subscription fee, which is quite low in many countries pay-television channels can increase their profit base. The performance and successful strategies followed by Satellite Television Asian Region (STAR) has been provided.

The abolition of the monopoly on international calling held by Hongkong Telecom on Jan 1, 1999, will mark a significant shift towards the liberalization of Hong Kong's telecommunications market. It is widely recognized that the telecommunications market must be substantially reformed, as telecommunications are vital to the high levels of business activity in Hong Kong. It is likely that charges will fall and that a wider variety of services will become available.

Dutch bank ABN Amro aims to become one of the three leading banks in Asia, rivalling Citibank and HSBC. Its ambitious approach has allowed it to attract relatively young managers from a number of different countries. It aims to generate at least 10% of total bank revenue from Asia by 2002, around double the current ratio. It has identified five key markets in Asia, but will not reveal which these are. It has doubled the number of its employees in Asia since early 1997, and will make a further 10% increase in 1998.

European engineering group ABB is keen to establish a stronger presence in Asia, despite the region's current financial difficulties. It will move up to 10,000 jobs from expensive European facilities to sites in Asia, and aims to boost its presence in Asia by half in the period to 2000. Asia accounted for just over one-fifth of ABB's $34.6 billion in revenues in 1996, and this proportion is set to rise to around one-third by 2008. Asia offers ABB both future markets and cheaper production sites.

Asia's financial sector looks set for a shake-out. The industry has grown rapidly since 1993 but analysts anticipate an equally rapid decline. The number of stock dealers and financial advisers in Hong Kong, for example, increased from around 8,000 in 1993 to almost 15,000 in 1997. Singapore's financial industry has had a similar rate of growth. Financial institutions across the region are now cutting back on costs and indicating that there might be redundancies.

Organizations throughout Asia are traditionally reluctant to disclose information about themselves. The same attitude is apparent in both companies and governments. They also demonstrate ill-feeling towards those, including journalists and brokers, who try to reveal more information. The lack of transparency may have played a large part in causing the Asian economic crisis, and the response of blaming the disclosers is evident in its aftermath. Investors believe that transparency is vital for economic recovery.

Industry analysts said that the growing instant noodle market in Asia is estimated to have an annual market value of $6 billion. About 2,000 new instant noodle factories have been opened in China, which had $2.5 billion in sales for 2002, over the last five years.

It is becoming increasingly likely that the Hong Kong government will have to bring to an end the link between the Hong Kong dollar and the US dollar. The Hong Kong Monetary Authority has used large-scale intervention in the stock, currency and futures markets as a way of avoiding raising interest rates, and has thus given up its main weapon in defending the US dollar peg. However, ordinary people in Hong Kong still have faith in the Hong Kong dollar, and this is key element in maintaining its integrity.

It is possible that the single European currency has already had a significant impact on Asia, even though it has not yet been launched. Some currency analysts believe that the creation of the single European currency could have indirectly been responsible for Asia's currency crisis. It is widely anticipated that the euro will be a strong and credible currency, and it is set to become one of the three main reserve currencies. The dollar and the yen could be at the start of a lengthy period of downwards readjustment.

The number of satellite transponders in Asia has almost tripled since 1993 to more than 1,100. A record 14 satellites carrying 250 new transponders were launched into orbit above the region in 1997. However, the Asian currency crisis has had a negative impact on the satellite sector, and many satellites are now underused. The price of transponder leases has fallen by between 20% and 30%, and even Asia Satellite Telecommunications, regarded as Asia's most profitable satellite operator, is experiencing financial difficulties.

Cargo problems at Hong Kong's Chek Lap Kok airport are creating difficulties for Hong Kong's small businesses. These businesses rely on receiving regular small import shipments of parts, quickly assembling and exporting the finished products and receiving payment to purchase the next input. The government estimates that the cargo delays could cost the Hong Kong economy $590 million, but other experts believe the cost could be higher. Hong Kong's 1,500 watchmakers have been particularly badly affected. Watchmaker Enders Lam describes his problems.

The opening of Hong Kong's new Chek Lap Kok Airport was accompanied by a series of problems, which included lost luggage, delayed planes and the failure of the information display system. The old Kai Tak Airport closed on 6 July 1998, with officials and passengers transferring to the new Chek Lap Kok Airport, the 34 kilometers away. Hong Kong gave an emotional farewell to the Kai Tak site, with many people visiting the airport to relive old memories.

Hong Kong's economy is facing a more direct threat from the financial crisis in Asia than from companies with connections with China. The Hong Kong administration is now having to deal with a completely unexpected recession. Property prices, the local indication of economic strength, are falling, and retail sales, exports and investments all fell in the first three months of 1998. Financial Secretary Donald Tsang has announced a number of short-term initiatives to support the economy.

The impact of the economic crisis in Indonesia has indicated that Singapore and Hong Kong, traditionally regarded as safe havens, are not necessarily immune from turmoil in Asia. Indonesia's difficulties were directly responsible for the collapse of Hong Kong's Peregrine Investments Holdings, the largest independent merchant bank in Asia, and Hong Kong's economy looks set to experience considerable difficulties in 1998. Similarly, Singapore could even experience recession in 1998.

Asia's stock markets are likely to show very mixed performance in 1998, and this means that investors will have to focus on capital preservation, rather than on making large profits. Investors will probably focus on defensive stocks, cash and bonds, and will avoid investing aggressively in equities. The Hong Kong stock market may avoid the worst of the uncertainty on Asian stock markets, and it may also be worth considering investing in Singapore.

Hong Kong's chief executive, Tung Chee-hwa, has announced a new industrial policy which aims to foster hi-tech industry in Hong Kong. This policy has been proposed before in order to replace low-tech manufacturing, but the Hong Kong government was previously less interventionist. Hong Kong faces competition from the Philippines and Malaysia, which have lower costs and are also seeking to develop hi-tech activities, while other economies in the region like Taiwan already have a head start. Hong Kong is seeking to develop niches in order to combat these obstacles.

Demand for computer products is rising due to the launch of new technologies, and this demand is feeding through to create a higher demand for South Asian electronics exports. Electronics form a major part of Southeast Asian exports, around half in the cases of Singapore, Malaysia and the Philippines, so this effect is a welcome relief to an area heading for slower growth. One positive aspect of the 1997 Southeast Asian currency falls is that they offer an additional boost to exports from the region.

Almost all Asian cities look set for a major over-supply in hotel rooms by the end of the 1990s. Shanghai, Jakarta and Kuala Lumpur, for example, will at least double their supply of four and five-star hotel rooms within five years from 1997, and will be over-supplied by 1999. Some cities, including Bangkok, already have too many hotel rooms. Hotel chains are also facing rapidly-rising development costs. These situations mean that occupancy rates, prices and operating profits are falling or will fall, and Asian hotel chains are beginning to show the effects in falling corporate profits.

Singapore Telecom (SingTel) has invested heavily in a new advertising campaign to offset the first real competition it has faced in the mobile-phone market, with the launch of rival MobileOne. The company's monopoly will increasingly be eroded with the opening of the market and it will lost is exclusive local and international phone service licence in the year 2000. It is also introducing new products and services, and it acquired 36,000 new customers in April.

Causeway Bay, Hong Kong and Orchard Road, Singapore, are both key shopping districts and they have both been hit by competition from other locations. Hong Kong has seen a slump lasting two years and Singapore has suffered sluggish sales growth. Hong Kong is seen as expensive by some tourists and discounts are offered to attract customers. Japanese discount outlets are one source of competition for Singapore which has also been hit by a rise in the value of its currency, making shopping abroad better value.

The chief executive of BfR Holdings, Fook Kiong Lee, has invented a new blast-and-fragment-resistant boot that he hopes will become popular all over the world. Claims that the boot is landmine-resistant are tested, the real usefulness of the boot is examined, and the future for LeeEs company is speculated upon.

Even though Hong KongEs Gross Domestic Product (GDP) is showing a growth of 0.5% in the second quarter owing to its export sector still gloom looms over Hong KongEs economy as it continues to tackle problems like stagnant growth in real estates, deficit finance, unemployment, bad housing policy etc.

The importance of the management of reputation and trust among today's business enterprises is discussed. According to the estimates of the United States Federal Reserve intangible assets like brand equity, intellectual property and reputation account for as much as 47% of American companies' net worth.

The prospects for the growth of newspaper publishing industry in China and Indonesia are reviewed. The increased advertising spending, and the relaxation of media controls due to certain political changes are the main reasons behind this media boom in the two countries.

The state of the Hong Kong economy is looked at, and its main drivers are discussed. Analysts are not encouraged by the trend, which has changed since the Asian financial crisis. The property sector is no longer the forerunner and investment banking is in a bad state, while the export and trading sector continue to drive the economy.

Asian companies are increasingly turning to securitization as they seek to raise money. This approach is attracting interest from investors, but investors are still exercising considerable caution. They are willing to invest in well-managed banks with strong brand names, for example, but are much less willing to invest in construction companies and large infrastructure schemes. Many observers believe that the growth in securitization will spark off the creation of a bond market in Asia.

There will be 7.7 million square feet of empty office space in Hong Kong in 1998, which is twice the normal office space available to rent. Rent on retail units are also between 15%-20% less than June 1997 and shopkeepers are campaigning to have rents reduced because of the downturn in consumer spending. Property companies will be the worst hit by the slump because they need income from rented property to pay their debts. Small developers could go out of business but larger ones will be secure as they only have a debt-to-equity average of 30%.

There are considerable problems facing Hong Kong's property market, which accounts for more than a third of the economy. There is set to be a large surplus of commercial space, and there are also concerns about a price war for residential property. Hong Kong's economy as a whole is set to slow down in 1998, although it will not perform as badly as the economies of some neighbouring countries. GDP is officially forecast to expand by 3.5%, but some independent forecasters anticipate GDP growth of only 2%.

There have been some indications that Asia's financial markets are beginning to revive. Investors have welcomed Indonesia's efforts to reform its economy, while South Korea was able to roll over $24 billion in short-term debt during the Lunar New Year holiday. However, Asian governments will still face challenges when attempting to implement economic reforms. For this reason, investors in the region continue to take considerable risks. Financial markets are likely to remain volatile throughout the rest of 1998.

It is likely that European banks will begin to establish a stronger presence in Asia, where they see long-term potential. The sale of local banks in South Korea and Thailand has already attracted interest from outside the region, and there are likely to be some purchases in Indonesia too. French banks like Societe Generale and Credit Lyonnais have already begun to expand aggressively in Asia, and similar moves are likely to be seen from Banco Santander, the largest Spanish bank.

There has been a sharp decline in the number of tourists visiting Hong Kong since the handover to China on Jul 1, 1997. This situation has been made worse by the financial crisis in Asia. The decline in tourist arrivals will have a significant impact on Hong Kong's economy, as the travel and tourism industry represents 8% of GDP and 12% of employment. Of Hong Kong's 1,260 licensed travel agents, as many as 400 may now be facing financial difficulties.

The mutual fund industry is beginning to find success in the Hong Kong market. The industry has targeted Hong Kong for some years but achieved household penetration of only 4%. However, the 35% drop in the Hang Seng index in the three months to Nov 1997 is causing Hong Kong investors to take a new interest in mutual funds with their associated professional advice and risk management. A mandatory retirement fund, to be launched in 1998 or 1999, will also bring an additional annual $2 billion to $3 billion into the mutual funds industry.

The Hong Kong government is facing the possibility of a delay in completion of its new Chek Lap Kok airport, although the Airport Authority maintains that the airport will be able to open in Apr 1998 as planned. The government will lose around $65 million for every month of delay, due to debt servicing costs and lost revenues. Hong Kong would also lose potential tourist revenue. The existing Kai Tak airport has to reject 230 flights per week due to operational limitations. The Airport Development Steering Committee will make its decision on an opening date in Dec 1997.