suffrage story. we will hear from all of the major players including martin a lee, the founder of the democratic party. thaticroscopic particles are entering the food chain. a special report. getting away from it all. we revisit welcome be the most isolated hotel. this monday edition of "asia edge." >> i am watching the markets. i am exact -- i am exaggerating, a good start. came out ofpmi china, things started to turn around for the better. another good session over in taiwan. something that has become quite common. inflows intoet taiwan. the most in asia, recently edging out india.

manufacturing pmi, not the best. towardo be leaning expectations. china may step in to support the economy. china, gains led by the automakers. china rose out the policy on electric cars. defense related shares. report out off "the shanghai chinaties news," that will announce this blueprint, restructuring plan of military research unit. elsewhere, it looks a good so far. i will be back. >> writer to our top story. >> right to our top story. bloomberg news, asia government editor david tweed on the streets. promising more protests.

any idea when we would be getting them? >> they have not actually said it when it will do the protests but we know we will be having the protests at least 10,000 people. that is a targeted number from occupied central. on to the streets in central hong kong and the idea is to bring central hong kong to an absolute stop. ok, what are the contingency plans that businesses are taking? >> we are beginning to see some of those. around under the hsbc building, it is an iconic building. use by the occupy wall street protesters a couple of months ago. what are they are doing is building scaffolding on the inside of the on the cross to

make sure no one can access that area. that is one thing that is being done by a company here. the building where bloomberg is located, they are also taking steps to be wrecked barricades barricades to make sure employees can get in and out. this is the important thing because of some people have predicted that occupy central wood-burning a perfect financial storm. businesses are doing whatever they can to make sure it does not happen. >> david, the democratic party and he said britain had sold hong kong 430 pieces of silver. -- for 30 pieces of silver. what is the reaction globally? >> there has been an interesting reaction from the united states. they put out a statement saying

the u.s. supports universal suffrage in hong kong and we society ist an open the highest possible degree of autonomy and governed by the rule of law is the central for hong kong stability and prosperity. it is very interesting the state department would put out a statement like this. it is the opposite of what a lot the 4 big accounting firms have of big businesses here including been saying. the said occupy central and breaking of the rule of law as they put it would have a detrimental effects here. that is a very strong statement coming from the united states' government in support of hong kong and sending a very point to beijing. >> david, thank you for that. david tweed joining us outside of the building and hong kong. thisve been talking about to a number of our guests. he said china

continues to move the goalposts. >> anybody who is really competent would like to be the chief executive of government knowing he cannot serve two masters. he cannot do a good job. unless he really lets go and let hong kong people will hong kong with a high level of autonomy. and the people of hong kong. they have completely departed from that now. kong's former chief secretary said beijing has betrayed the city. and the move for only instigate more public opposition. ultraconservative decision will only brought allies and there will be -- will only radicalize and will make governments even more difficult. and for the hong kong public, a deep sense of betrayal and no

more hope. for beijing point of view, they should be worried. the message they are sending to the hong kong people is we do not trust you and we must pre-scheme -- prescreen all of the candidates. the world sees it for what it is -- a beijing that is determined to have its way. head of the new parties people said they are taking a big step forward. >> people will have a really choice. there more -- there must be three candidates. [indiscernible] if there were only one candidate, the election would be invalid. they are taking a big step forward in and fostering real competition. based on [indiscernible] it would be much reduced.

have anticipated that does not the only benchmark. from thes the word rejection of greater democracy for hong kong. >> china is allowing local governments to raise money through bond sales. this move is designed to cut the high risk debt levels that have built up through more opaque vehicles. john dawson is here to explain and make clear what has been very convoluted for a very long time. >> that is right. you go back 20 years and they banned local governments from selling bonds. it is clearly to reduce high-risk debt. the world bank is 40% a local borrowing its funding through financial vehicles and now they want to remove that obstacle and the high risk debt.

the object is to bring back selling bonds. it worked. they are saying, green light to go with it. it will allow governments to source money and build infrastructure projects around these. clearly, not transparent. it is a dire situation. the bond sales ago in. the transparency that is so valuable and into valued here. >> the shadow banking and there were other debts. it allows the minister of finance to seek their prospectusus. a higher degree of disclosure and allow more even distribution of the risk among competitors. it is difficult to understand and read our movie high

financing. >> and there is one thing it is still cannot do which is to raise money for day-to-day operations. and noou mentioned that credit guarantees and that is also out of the equation. sale.not have that data it for the longer term. it is crucial for china. infrastructure. far more transparent. >> thank you so much for that. checking on other stories. said to have delayed at the roadshow for its upcoming ipo to answer questions. it expects the investors at meeting to start next week with pricing set for september 18. the offering is expected to be the biggest ever in the u.s. after losing out on the alibaba ipl, the hong kong exchange is

opening up a debate of its future. respondentsper and have a three months to answer questions which if it should allow the tool class shares. ss shares.a the latest from hsbc which shows factory declines had a slight decline in august. government figures shows a steeper declines that missed estimates. it signaled more chinese stimulus and the months ahead. let's get it back to david ingles who is watching the fx market. >> it will be a big week across currency markets. this week. don index about the -- the dollar index at about to the highest level. we will continue to see strength early monday and it into a broader indication. 8, that is a two-year chart.

there we go. what else do we have? japanese yen is back above 104. in the last 16 sessions. do watch what is happening in the ukraine. it tends to put pressure on dollar/yen. aussie/dollar. tomorrow.mes out expect to keep borrowing costs at a record low. not really budging, coming from the pmi data from china. not so much today. you want to watch out for the euro. already 131.22. the lowest in over one year. rate decisioncb on thursday. expected to keep things unchanged.

watch out for comments and guidance is always key language they use. we have this ongoing debate within the eurozone. france wants the ecb [indiscernible] at exactly going along with plan. what we have on thursday, almost at the same time, the bank of england come out with our policy. andere briefly above 166 one point at 9:30 this morning and not really doing a lot. rish, i will send it back to you. >> coming up, what lies by need. how pleasant particles is finding its way into the food chain. next, practice makes perfect. the latest on bridging. "asia edge" returns and a couple of minutes. ♪

>> the first full trial of the exchange went smoothly. brokers working over the weekend and they said mock trades carried out with the no major issues. the unprecedented access in mainland china. on link is expected to start the 13th of october. for more on this, the managing .irector at the j.p. morgan thank you for joining us. how important is this? because very important whether talking about the train and it is not materialize. there are lots of issues. it has to do with the and both hong kong and china and foreign exchange, capital flows, etc. it is now on our doorstep. mid-october, the implementation will go ahead.

it is quite important. if you think about it, the quarter, the daily trading and annual trading eventually will be expanded. i think the shanghai-hong kong exchange will eventually extend as well. it is really encouraging movement of capital between hong kong and china providing for both markets. >> does it really? what does hong kong get out of it? >> mainland investors have not had access to hong kong ever. you have a number of companies listed in hong kong that are not accessible to the investors' stuff that is right. you get more capital flows. that will help boost the hong kong market and trading volume. and also, it will really help links to china with hong kong even more closely together. think about it. you have harmony.

this is also another stuff ford in the practice forward -- it is another step forward. >> if they have been a bit lukewarm. >> the mainland market, as you know has been in the doldrums for the past five years. bears been really in a market. especially in the past several months since the connect was announced. you are seeing more interest in hong kong and internationally. has climbed globally. they are clearly watching the rebalance of the connect. they are eager to participate. >> what about premiums we have here? as amust have narrowed result of >> that is a simple irish roche game. -- mitch roche -- armitrage game.

it is quite attractive. eight or nine times. when the stock connect kicks peopleu may see more buying mainland shares initially because companies are listed in both hong kong and shanghai. the price is different. it will remove the price gap. >> please stick around with us. joining us a little later on in the program. ties.strengthening touching down in japan with a summit with shinzo abe. what is on the agenda. we will be back. ♪

>> checking some stories making headlines around the world. the thai prime minister has named his cabinet. stacking key offices with a military figures. they control the ministries of defense, foreign affairs, commerce, education, and justice. finance is held by a civilian. general was confirmed as prime minister last week. meanwhile, pakistan's military

leaders have called on leaders to find his solution to the antigovernment protests that have turned fatal. three people were killed and 500 injured when demonstrators clashed with police on sunday near the prime minister's home. it was led by a politician. of ratinged sharif last year's elections. myanmar has discovered it has far less people than they thought. asince is it revealed population of 51 million people in spring. were nothe country counted. jack could count for it. in the0,000 people western state were denied the right to identify themselves while parts of the northern part were not surveyed the cause they are controlled by rebel groups. india's economy is a showing signs of recovery. it grew at its fastest rate at

two years. it was above estimates. prime minister modi is given a days as he is in his 100 of office. inflation is the fastest in the region. >> the prime minister is in a japan speaking. what is on his agenda. was do we know? -- what do we know? >> he will hit the 100 days of office tomorrow. if septembermine had be the start of the alignment of two countries that are set to get together. it was shifted the balance of power and prospects of economic stability in asia. also the kind of chemistry that modi and shinzo abe share.

prime minister modi has manufacturing and infrastructure and energy as of the key areas for cooperation and also bilateral economic relationship with japan. likely to agree to raise the meeting framework to ministerial levels. the indian economy and more investment for japanese companies in indian sectors including high-speed bullet trains that are likely to be a part of the agenda. with a higher delegation of business leaders including -- >> thank you very much for that. joining us from will buy. the prospects. futures at work. -- joining us from mumbai.

-- the prospects. -- futures at work. daying out the last trading up a fraction. taking back some of the gains at the stage. this is what we have at a the moment. up 0.1%. and we have [indiscernible] a look at to the kospi. moving to the upside. moment.the moving to the upside in hong kong. it is against the back drop. lots of that. on the one hand, the official number that was slightly lower than estimated. below thedex and also figure and below the estimate

that was essentially what we saw and it's down. it moved to the upside. even though they disappointed, the contraption showed a down. and what they plan on doing looking at stimulus to get the economy back on track so they can achieve the growth rate at 7.5%, which is what they are aiming for after the course of this year. on the way up of the speculation that china should take steps to boost the economy there as well. and we have with the reopening taking place. finishing off their lunch in japan. we have the restart, next. ♪

♪ risks to growth. factory expansion cools and china. -- forward.wa protesters angered at beijing's control over elections. the latest from the markets right now. david ingles watching. >> a lot happening. the aussie just listed. over in shanghai. the exposure.

companies in you would not have. we had a lot of things coming out of china. lots of policy changes and one automakers.g china is rolling out its policy on electric vehicles tax exemptions. a lot of the automakers in shanghai. the second group of stocks you want to watch our defense related shares. a report this morning out of the shanghai securities news that china may soon announce the restructuring blueprint it has for military research units. over to hong kong specifically because we have a group stopped we are watching closely. the casinos. foroll will be releasing august. we are seeing declines across. mgm, very long losing streaks. individually, earnings are a theme. china's construction over the

slowest inowing, the half a decade. other banks in china. nonperforming loans on the books. 96 billion. not a small figure. biga southern among the three. you have them taking the biggest fx hit. wiping out everything. over and one billion. [indiscernible] up as much as 4.5%? as far as earnings and shifting on very quickly, china oil and gas. boosting the outlook for the credit ratings there and industries expanding. two separate stories. cutprice target at scic was

to 180. an ongoing story. it remains at a company overdue on 262 million. bank loans are a concern. we will continue to follow this. back to you. >> thanks. takesters are expected to to the streets of hong kong after china rejected rayner democracy for the city and they said beijing has reneged on universal suffrage. china said it is only allowed a handful of preapproved candidates to stand in the election in 2017. >> i talked to the founding chair of the democratic party and the new people's party how beijing has made the right moves. thoughdoes not know even she is not into rotten fruit.

she is not enough of a slave for them, they want to pick people who are entire puppets. >> they have to have a degree of confidence surely. >> and a body who is good and competent, would he let to be the executive knowing he cannot masters? he cannot do a good job. and letly lead to go the hong kong people rule hong kong with a high level of autonomy. they have completely departed from that. >> let me play devil's advocate. just before the commercial break, virginia was saying in 1997 when it there was a hand over power there was no democracy. not much more for session has a point there, doesn't she?

britain never promised democracy. we are only asking for what china promise. >> did they ever promising universal suffrage? >> no, no, they did promise in universal suffrage. basic law of our constitution say hong kong people have the right to to elect and stand in the elections. cabinet international supplies to hong kong. you cannot just give people the right to elect. in beijing picks all of the candidates. beijing have to work on their economy as well. they want to step up measures after a slowdown in may fracturing. economist joins us from beijing. tell us more about this. quarterg into the third

there was a lot of optimism we sawhina's economy and gdp rebounding strongly and the filling was the target stimulus measures had been enough to get to the economy back on track. now heading into september, a lot of that optimism has evaporated. first of all, we saw sharp falls in lending and then continued slow down in the real estate sector and come bounding those a downturn in the pmi numbers for august. the official pmi down turning to be hsbc market and turning down and beneath the headlines andkers, exports weaker weaker output. fairly troubling data out of china today. thisue to what happens in current quarter and the fourth quarter of the year. until the last

few weeks there was optimism that the government had done enough to hit its 7.5% target for growth this year. the size out of real estate and lending and today's pmi data suggests that conclusion may have to be reevaluated. my expectation is we will see an toense -- of measures increase growth and more targeted moves by the cboc to boost lending. perhaps if we see signs of weakness in the pmi data and augusted weaker data in and a further move toward stimulus like a rate cut could become irresistible. >> tom, thank you for that. full trial of the hong kong/shanghai link has gone smoothly. brokers were to through the

weekend. with noe carried out major issues. joining us is bloomberg intelligence francis chan. what else has to be done before the link can go through? >> [indiscernible] they3th of september and told participants that 80% of the market turnover would be joining the last half. and if so, that will verify the training process. upon the completion of these tasks, it will be ready to go and finalize. the chinese regulator will finally give the green light for the launch of the link on the 13th of october. >> that is not official yet. that is what everybody is working for. >> it seems that completed the connectivity test but we read

that we have been hearing that mainland investors are not as as foreign investors are excited. >> that is pretty true. if they should not. there should be a lot of opportunities opened for mainland. for instant calm the state owned entities like china mobile. chinese financial companies like hsbc and is such industries. also opened up for the internet. gaming like galaxy. and the luxury groups like prada. i think they really gain more investment opportunities just because over this. >> but of course, it is a little up. what about julie listed stocks. we heard in terms of ipos, they want to do a dual currency

stock. what about these developments as it pertains to the hk-shanghai connect? >> the premium for stocks, bloomberg intelligence is overing, has been narrowed the past three months. industrial stocks, material stocks, trading at a 50% premiums over there hong kong counterparts. stocks, they are at a discount over the counterpart. of course, all of this will bring rise to opportunities. will start in october. >> with heard people speculating and buying up shares in anticipation of october 13. hong kong alibaba? exchange lose and out to new

york stock exchange and there is consultantat least a state and whether it should do dual-class shares. >> the hong kong exchange has already has a paper for shares just like alibaba does. the would be stricter to industry. if you look at the priceline, losing out on new holding structure could help support ipos. at the same time, it could weaken. just because [indiscernible] debate,is part of the ongoing still. francis, thank you so much for joining us. that is francis chan. >> some of the corporate stories we are following. scandal.

six executives at the shanghai division have been arrested. authorities say it is in connection with a suspected cell of products process after the sale by date. softbank is set to be one of the potential buyers of latin largest wireless providers. they will sell part of their operations in mexico due to regulatory changes. at&t is a sad to be another buyer. to be another buyer. apple is said to tame my was a major banks and we tailors -- is said to team up with major brands and retailers for mobile payments. they will make of it announcement next week after launch of the iphone 6. it will allow mobile payments.

micro plastic is small but it is big news. these tiny particles are being found in what looked like pristine waters and from there, their entry into the food chain. >> on the surface, sydney harbor may look pristine. underneath,s pollutants too small to be seen. get anything ranging 40-60 fragments of micro plastic. >> it has a reputation as an environmental bad guy. into theheir way digestive systems of sea creatures including the sandworms. ofwe have seen in the guts some of the animals that live in the sediment. micro classes are entering the food chain.

>> the institute took samples from 27 locations. it is a study, the first of his kind. they found micro-plastic contamination. they come from many sources. some are obvious like the decomposition of plastic bottles and some from tiny exfoliating beads in some facial cleansers and even detergent. >> when we wash and of the washing machine, lots of out of the jacket and they enter our waterways. impact they are has on the food chain, some states in the u.s. have abandoned them on the strength of this study, the australian state of new wells is considering following suit. next, the slow down and china's manufacturing. we will be discussing debt and

the rest of the day's top stories. that is after this short break. stay with us. ♪

>> welcome back. we have a david and david tweed as well. , we were top and about the exchange link between hong kong and shanghai. -- we were talking about the exchange link the 20 hong kong and shanghai. what do you make of it? inwe are seeing softening manufacturing data like we saw this morning. it is pointing to slowdowns. natural after what we had in terms of growth. slowdown iny sharp credit growth.

when the credits slows, manufacturing slows. this calls into question what may come next. people are expecting some kind of stimulus. i do not think they are in any position to have strong annulus to boost activity. tight, thehold growth is going to be what we are going to get the next year. >> said they have the strong stimulus. jacobi the growth target. the government is much -- that is the growth target. moree government is much likely to force economic growth. what we need to watch is is things are slowing in the economy because of the property market has been weakening for a number of months. slows,e property market it affects many sectors

including, oddities and manufacturing of home appliances and consumer sentiment. wethe property set their, are -- sector, we are seeing some old loosening. some cities have loosened the restrictions already. >> home owners are starting to rent out. quite possibly. >> that is a big deal. i just did. >> [indiscernible] they maximize their yields that way. tothey do not want anybody live in the homes they eventually want. it has to do with superstition. >> i think also because in the they do was so buoyant, not want independence because they wanted to sell. that is one reason. secondly, the sentiment is changing because and the next

few years will have the recurring property taxes. a levy on a homes. if you hold five or 10 properties, the price could be much higher. people are starting to get recurring income for renting out to their homes. >> how it plays into the banks.e of the latest results from the bank of. the key thing was the provision of a lot more for future bad debt. is that something that concerns you? loans ate a rise in a chinese banks. important to link the public sector with chinese bank assets. we had to differentiate between loans to home buyers and mortgages. i would inc. and the number one mortgages are actually quite secure and very low default rates. to developers, it would be another issue because small

developers are coming under quite a bit of stress. we could see an increase loans to smaller developers. longer-term, this is positive. it would force consolidation. you are seeing larger developers buy up smaller developers. as some of the defunct or failed developers will have to exit the markets. john? a i wanted to switch topics bit. david tweed, you have been outside industry and reporting all occupy central. this movement that is really intensifying here. people are angry, they want universal suffrage on international standards and that does not what to beijing is saying. >> the chinese characteristics. mean democracyot at all given that one not to be any kind of universal suffrage.

what that means is this occupy central movement that will hurt so much about and hearing about the strategy of occupy central has been broadcasting exactly what they are going to do and they are probably going to move ahead in occupy central. >> we do not know when. when, maybe inow a week or so so they can build up momentum. there's a lot of anger at the moment. lawmakers,pposition giving a speech. who is from the national people's congress giving a speech. >> at midnight? >> is that is right. something interesting. there can be further changes to electoral laws. >> it is often said to could be but notued -- for this

2017 which is why occupy central is so upset for so what it means after the end of the day, we will see the central part of hong kong occupied and that will lead unfortunately to violence because they foul to stay there on till they are physically removed by the police authorities. >> they said to bring it on. >> i always wondered. >> it could be anywhere. as you were reported hsbc -- >> it will not be under hsbc. >> they want to be on the streets. they want to disrupt the traffic. there will be three groups. the most important other groups will be the people handing out flowers because they are the ones the hong kong police will want to spray. >> what about the threat of people's liberation army?

they have a base of their let's not forget that. we shall see. see so much for that. --ing up next >> leaving the world behind for a moment. >> the most isolated hotel in the world. this is "asia edge," back in a moment. ♪

>> sometimes many of us will like to get away from it all, leave at the world behind. >> a solution. the destination is so remote. >> beautiful. >> a boat used to be the only way to get into this bay. >> you made it.

standards, this peninsula is remote. it is a chunk of rock. kilometers from the nearest airport in mumbai. ds, it may be more pleasant to para glide. >> you go down to the resort. a breathtaking view over the sydney bay. resort took five years to build. nothing happens quickly here. it is set up to resemble a traditional village. all you would expect from a five star resort. but witharefoot luxury a high-end price. ands cost between $800 $1800. private reserve is $15,000.

>> it does not stand out as many other hotels do. it is just part of the uniqueness of the beautiful surroundings.

>> of the following is a paid program. star vista, the brand you trust reaching for the stars. the biggest stars. and thes funniest greatest talent of all time.