Gains and governance overshadow politicised "national Interests" in a globalised economy : proposed Singapore-Australian Stock Exchange merger

Most articles on the issue of the proposed Singapore-Australian stock exchanges merger have been replete with emotional outbursts on national interest and the impact on investors' profits.

Here are some objective analysis by economic, industry, legal and regulatory experts that should be considered seriously than politicising an economic issues.

The main players are keen but each side is worried that they have the short end of the deal. Most Australians' concerns focus on compromises on regulations of companies' listing, complaince such as disclosure requirements and independence. Singaporean analysts, on the other hand, are uncomfortable that the venture is overpriced and laden with obstacles on approval as well as potential management and competition issues from Chi-X.

It is a perennial challenge to achieve an optimal balance between regulation and economic vibrance.

QUOTE :

[Lawyers Michael Wilton and Jill Gauntlett say : ... shareholders should be comforted by the long historical links in regulation between Australia and Singapore. When Singapore fashioned its corporations law almost 50 years ago, it modelled it on the uniform Companies Act passed by all Australian states in 1961. Revised uniform listing rules took effect in Australia at the same time.]

[Singapore has different financial track record requirements and does not have an equivalent of Australia's assets test that allows mining exploration companies to list before they turn a profit.]

[Jennifer Hill, Professor of Law in University of Sydney says :
Australia and Singapore allow their exchanges to grant waivers case by case. This ''may potentially constitute a form of selective regulation'' ... the corporate governance consultancy ISS released a report in 2007 that concluded that the Australian waiver scheme lacked transparency, especially compared with New Zealand, but was substantially more transparent than London or New York .... such disparities could be a concern as global competition among exchanges increases.]

[''During the 1990s, it was often assumed that the trend towards cross-listing of foreign firms in the United States was itself a new form of regulatory competition, under which foreign companies from jurisdictions with poor corporate governance would cross-list to gain regulatory credibility,'' she says.

But this assumption was questioned after the Sarbanes-Oxley Act was passed in 2002, when many high-profile Asian companies bypassed the New York Stock Exchange in favour of other international exchanges.

''This suggested that overly stringent governance may repel, rather than attract, cross-listing,'' Hill says. ''This remains a danger for securities exchanges, particularly given increased competition for listing and trading revenues.'' ]

http://www.theage.com.au/business/asx-merger-plan-raises-questions-of-governance-20101028-175s7.html

Historic Windsor at the heart of Hawkesbury Valley, NSW

Historic Windsor was a Macquarie town (the first NSW governor) in 1810. It remains a quaint small town with lavish display of traditional and modern wares in the shops and street stalls.

Cow hide comes in different sizes, prints, texture and finishes. The leather goods are soft, light and inexpensive.



The kids (and young at heart adults) would love this lolly shop, redolent with sweet aroma, rainbow colours and temptations.

Windsor Mall Craft Market

Opens every Sunday from 9 am in Windsor Mall, George Street. Quality handmade homewares, arts, crafts, fashion and fresh produce for you to browse and pick up some souvenir to bring home. A beautiful setting for locals and tourists. There is wheelchair friendly access, public seats for resting and picnics and ample street and shopping centre parking.

Turkish Gozleme

Olives galore

Familiar tunes played by musicians add to the festive mood.

Best Fish and Chips in Sydney metro area?

I heard from a friend that Windsor has the best fish and chips in town. So this weekend, we decided to check it out with no inkling of the name of the eatery and address. Based on some googled results and whereis directions, we found it after a casual stroll in the mall area. It is opposite the pub and park, quite close to the end of mall area along George Street (accessible from Macquarie Street via Fitzgerald Street).

The battered deep sea platter which is larger and costs almost one and half times that of the seafood platter is the tastier of the two. One large platter could easily feed three to four adults. The verdict : the seafood is fresh and nicely fried but not fantastic given the price and long wait. The chips are thick and limpy. We must try the fresh oysters and the hot n cold platter if we visit Windsor again.

Horse and Carriage

Look again - it's actually a restaurant. Wonder if diners have to pay for the two riders who ensure that the horses remain stationary.



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Don't panic : long term stock market smooths short term volatility

Many economists and political leaders have said that the 2008 financial meltdown would not match the magnittude of the Great Depression. There was no social safety net and the benefit of learning the lessons from past mistakes then. Alas, tere is a tendency for many undergoing a crisis to overreact.

Just try not to panic

A long term market view often irons out the volatility of short-term events

by David Koch (Sun Herald newspaper print edition, 7 December 2008)

Extracts :

For all the wrong reasons 2008 will go down as a historic year but the chances are it won't be repeated next year. As it stands, history tells us next year is unlikely to be as disastrous - there could still be falls but not as bad. On average, 70 per cent of the the past 183 trading years have produced positive returns.
Despite the daily to monthly volatility of the markets, stepping back and taking an annual view smooths out the performance.
It is the most relevant view for most private investors because we tend to take a medium- to long-term view and invest in quality stocks. But it's human nature to be attracted to drama. So when there is a sharemarket plunge, we follow it day by day and get panicky when things continue to deteriorate. Markets reflect investor sentiment and psychology and become panicky when we become panicky. Try to break the cycle. Take an interest, of course, but keep it in perspective rather than get sucked into the drama.

We wish you a Merry Crisis