Asia Pacific

Japan’s ruling Democratic party on Thursday made fiscal consolidation a centrepiece of its latest election manifesto, with Naoto Kan, prime minister, signalling a possible doubling of the 5 per cent consumption tax, the Financial Times reported. The moves underscored Mr Kan's determination to make reining in state debt a top government priority, a policy stance that is winning his new DPJ administration friends among business groups.

Christchurch developer Dave Henderson has lost control of Hotel So after South Canterbury Finance (SCF) placed three of his companies into receivership, The Press reported. SCF appointed receivers to Cashel Ventures, Hotel So Operations and Hotel So Corporation, which respectively own and operate Henderson's 283-room hotel on Cashel St. Henderson is the sole director of all three companies, with his flagship company, Property Ventures, owning two and Henderson indirectly owning the third.

New investors may be asked to submit bids for the control of financially-stricken southern Queensland border irrigation giant, Cubbie Station, Stock & Land reported. A creditors meeting in South West Queensland at St George this week failed to give the green light to either of the two foreign parties currently vying for control of debt-burdened Cubbie, which farms 93,000 hectares on the Lower Balonne floodplain.

The receivership of a major hospitality operator, has made the future of 20 Auckland and Wellington bars uncertain, NZCity reported. Northern Hospitality Management was put into receivership last Friday. The Department of Internal Affairs is investigating the company over gaming machine grants, the flow of funds and its relationship with gaming foundations and trotting clubs. Receiver Gerry Rea says his company is dealing with 10 bars in Auckland 10 in Wellington.

The government of the United Arab Emirates (UAE) will soon issue economic laws to regulate the Gulf nation's financial sector and control the flow of hot money in the national economy, local economic daily Emirates Business 24/ 7 reported Wednesday.

Greece's debt-ridden economy has received unexpected endorsement from China as the two countries announced multibillion euro accords to boost cooperation in fields as diverse as shipping, tourism and telecommunications, The Guardian reported. The deals, which will see Greek olive oil being exported to China, were a welcome relief for a government smarting over Moody's move hours earlier to downgrade the nation's credit rating to junk. As investors moved in the other direction, the world's pre-eminent emerging economy embraced Greece.

Mahindra & Mahindra Ltd. said Monday it will start due diligence on Ssangyong Motor Co. in the next few days so it can decide on submitting a final bid for South Korea's fourth-largest car maker by sales, Dow Jones Daily Bankruptcy Review reported. Mahindra, India's biggest sport-utility vehicle maker by sales, is among six companies worldwide who qualified earlier this month to conduct due diligence on cash-strapped Ssangyong before submitting their binding bids.

The Chinese businesswoman orchestrating a buy-up of the Crafar dairy empire has made the first of two scheduled appearances in court this week in relation to failed business dealings, The New Zealand Herald reported. May Wang made a brief appearance in the Auckland District Court this morning on charges brought by the Ministry of Economic Development in relation to records of her property and hotel company Dynasty Group, now in liquidation.

Australia’s small listed companies are still struggling to raise finance in the wake of the global financial crisis, according to fund manager Roger Sharp, The Australian reported. "Anybody who says the banking crisis is over doesn't understand how tight the market is and how hard it in for small companies, even listed companies, to raise debt,” he said. Companies that succeed in securing a loan can pay 6 per cent and more above cash rates, according to Reserve Bank statistics.

The Securities Commission is warning Strategic Finance investors to be "wary" of a 5c in the dollar offer for their debentures in the collapsed finance company, The National Business Review reported. Australian company Stock and Share Trading Company Pty Ltd initially offered investors 20c in the dollar but has since come back with the much lower 5c. The same company has also attempted to entice St Laurence debenture holders with an 8c in the dollar deal, having initially offered 20c.