【华尔街日报亚洲版】April 12 2012

VOL. XXXVI NO. 156 THURSDAY, APRIL 12, 2012 China’s Investment Glut Is Growing OPINION Page 15 China’s Investment Glut Is Growing Google’s $12 Billion Toy THE GAME Page 21 As of 12 p.m. ET DJIA 12799.11 À 0.65% FTSE 100 5634.74 À 0.70% Nikkei 225 9458.74 g 0.83% Shanghai Comp. 2308.92 À 0.13% Hang Seng 20140.67 g 1.06% Sensex 17199.40 g 0.26% S&P/ASX 200 4246.10 g 1.08% asia.WSJ.com (India facsimile Vol. 3 No. 217) Australia:A$6.00(InclGST),Brunei:B$7.00,China:RM B25.00,Hong Kong:HK$20.00(InclM acau),India:Rs30.00,Indonesia:Rp18,000(InclPPN),Japan:Yen500(InclJCT),Korea:W on2,500, M alaysia:RM 7.00,Pakistan:Rs140.00,Philippines:Peso80.00,Singapore:S$4.50(InclGST),SriLanka:Slrs180(InclVAT),Taiw an:NT$60.00,Thailand:Baht50.00,Vietnam :US$2.50 KDN PP 9315/10/2012 (031275) M ICA (P) NO.030/10/2011 SK.M ENPEN R.I.NO:01/SK/M ENPEN/SCJJ/1998 TGL.4 SEPT 1998 Nokia cut its earnings outlook for the second time in less than a year, underscoring the hurdles faced by its smartphone business. Business ............... 23 Indonesian carrier Garuda unveiled a $2.5 billion deal to buy 11 planes from Airbus. Business ............... 22 Inside Pyongyang Starts Fueling Rocket SEOUL—North Korea re- portedly began fueling its multistage rocket on Wednes- day, a day ahead of a five-day launch window for what many countries believe is a test of a long-range missile. Officials in a number of countries, including Japan and the Philippines—which have territory close to the rocket’s expected flight path— continued to urge Pyongyang not to proceed with what would be its fourth launch of a multistage rocket. North Korean space au- thorities told reporters from foreign news organizations al- lowed into the country for the event that fueling started and plans for the launch were on schedule. North Korea has said the rocket carries a weather satellite and is being launched as one of a series of events commemorating the 100th anniversary of the birth of the country’s founder, Kim Il Sung. In another of the events, the country’s ruling Workers' Party convened a party con- ference on Wednesday and conferred a new title on Kim Jong Eun, the grandson of Kim Il Sung and son of Kim Jong Il who took control of the country after the death of his father in December. The party said the younger Mr. Kim would be known as its First Secretary, adding to the military titles that for- mally place him at the center Please turn to page 20 BY EVAN RAMSTAD A massive earthquake and aftershock shook Indonesia’s Aceh province Wednesday afternoon, triggering evacuations and tsunami watches around the region, though the notices were lifted by evening with little major damage or casualties reported. Page 4 Strong Undersea Earthquakes Near Indonesian Coast Rattle Region Agence France-Presse/Getty Images Philippine, China Ships Square Off MANILA—The Philippines Wednesday said it is trying to find a diplomatic solution to a tense standoff between a Phil- ippine warship and two Chi- nese surveillance vessels over fishing rights in the South China Sea, as long-brewing tensions in the contested wa- ters reach a fresh crisis point. Philippine Foreign Secre- tary Albert del Rosario said he met with Chinese Ambas- sador Ma Keqing and both re- affirmed their governments’ positions that the Scarbor- ough Shoal, where the ships are facing off, was part of their own country’s territory and neither was ready to stand down. Mr. del Rosario said that despite the impasse, and warning that the Philippines would defend itself if at- tacked, “we resolved to seek a diplomatic solution to the is- sue.” “The ambassador of China took the view that they have full sovereignty over the Scar- borough Shoal,” Mr. del Rosa- rio told reporters after the meeting at his Manila office. “So, in a sense, we had reached an impasse in terms of our positions. And so there’s a real challenge for us in terms of our agreement to keep on talking today.” Philippine President Beni- gno Aquino III repeated the call for calm in the heavily fished and potentially energy- rich sea. “Nobody will benefit if violence breaks out there,” the Associated Press reported Mr. Aquino as saying. The two navies encoun- tered each other after the Philippine vessel—a former Coast Guard cutter provided by the U.S. Navy—attempted to arrest the crew of several Chinese fishing boats who were anchored at Scarbor- ough Shoal, off the Philip- pines’ northwest coast but which is also claimed by China. The Philippine govern- ment said Chinese surveil- Please turn to page 20 BY JAMES HOOKWAY China Web Censors Fight Flood of Bo Commentary Talk about the Chinese government’s probes into Bo Xilai and his wife, Gu Kailai, reverberated around China’s Internet Wednesday despite strict censorship efforts, dem- onstrating a difficult task ahead for Communist Party officials seeking to restore an image of order and unity. Mr. Bo this week became the target of a corruption probe and his wife was named by authorities as a suspect in the murder of British busi- nessman Neil Heywood. In Chongqing, the indus- trial megacity where Mr. Bo was Communist Party chief until his ouster in March, many people expressed sup- port for Mr. Bo, citing a num- ber of the initiatives that first helped him rise to national prominence. The often foggy city of more than 30 million people, continued to bustle on Wednesday, with no obvious signs of additional security. Some residents—most of whom declined to give their names—said they never heard of Mr. Heywood before Tues- day’s announcement. Several residents said they felt that Mr. Bo’s most serious crime was failing to control the ac- tions of his family. The couple and their rep- resentatives couldn’t be reached to comment. Party officials called for unity both nationwide and in Chongqing. In a commentary for Thursday’s edition, Peo- ple’s Daily, the party mouth- piece, pointed out that “China is in a critical period of build- ing a well-off society and deepening reform as well as speeding up transformation of the economic development pattern.” It added, “To main- tain reform, development and stability, the Chinese must unify their thinking and ac- tion in line with the central authority’s decision.” The commentary built on similar language in a Wednes- day editorial, which called for “firm support for the correct Please turn to page 20 By Brian Spegele in Chongqing and Josh Chin in Beijing weibo.com/pdfmags 2 | Thursday, April 12, 2012 * * THEWALL STREET JOURNAL. THE WALL STREET JOURNAL ASIA Dow Jones Publishing Company (Asia) 25/F, Central Plaza, 18 Harbour Road, Hong Kong Tel 852-2573 7121 Fax 852-2834 5291 www.wsj-asia.com SUBSCRIPTIONS and Address Changes, please telephone our local customer service hotline, Hong Kong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090; Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592; Japan: 81-3 6269-2760; Korea: 82-2 3700 1925; Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873; Singapore: 65-6415 4000; Thailand: 66-2 690 4222 to 7; India: 91-11 6462 0215. Or email: service@wsj-asia.com ADVERTISING SALES worldwide through Dow Jones International. Hong Kong: 852-2831 2504; Singapore: 65- 6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 69 29725390; London: 44 207 842 9600; Paris: 33 1 40 17 17 01; New York: 1-212 659 2176. Or email: wsja.publisher@dowjones.com Trademarks appearing herein are used under license from Dow Jones & Company. USPS 337-350ISSN 0377-9920 PAGE TWO ONLINE TODAY Most read in Asia 1. China Drama Now a Murder Mystery 2. Strong Quakes Strike Off Indonesia 3. ‘Jackie Kennedy of China’ at Center of Political Drama 4. Players in China’s Leadership Purge Most emailed in Asia 1. China Drama Now a Murder Mystery 2. ‘Jackie Kennedy of China’ at Center of Political Drama 3. Report Says 150,000 Languish in North Korean Camps 4. Strong Quakes Strike Off Indonesia China Real Time wsj.com/chinarealtime In his book ‘Making the Connection,’ David Wolf traces the rise of Huawei and ZTE from regional equipment suppliers to global telecom giants. Southeast Asia ADB: Potential pitfalls for Myanmar’s economy. wsj.com/searealtime Scene Asia wsj.com/scene The Google Art Project, which lets Web users see artworks up close, adds collections from Asia. i i i Business & Finance n Chinese property developer Hangzhou Glory Real Estate filed for bankruptcy protection, falling victim to government efforts to rein in property prices and point- ing to wider problems for the Chi- nese real-estate market. 6 n The U.S. hit Apple and five big publishers with an antitrust law- suit, alleging they conspired to raise prices in the fast-growing e-book market. 24 n German yields on a 10-year bond auction fell to a record low while yields rose at an Italian treasury-bill sale, as investors fa- vored safe assets. 10 n New-vehicle sales in China fell 3.4% in the first quarter amid slowing economic growth, adding to concerns about the full-year sales outlook in the world’s larg- est auto market. 24 n U.S. regulators charged a Chi- nese commercial-vehicle company and 11 investors with stock manip- ulation, as they continued to ratchet up pressure on U.S.-traded Chinese companies with account- ing problems or other issues. 23 n China’s imports of crude oil jumped in March, fueling the be- lief among some analysts that the country is again hoarding oil for its strategic reserves. 21 n Japan’s core machinery orders rose 4.8% in February from Janu- ary, the government said, raising its assessment of the indicator for the first time since June. 4 n The Tokyo Stock Exchange and an arm of Daiwa Securities signed an agreement to help Myanmar establish a securities exchange. 27 n Alcoa reported first-quarter earnings fell 69% as the company was squeezed by lower aluminum prices and higher energy costs. 25 n Spanish industrial production fell at an accelerated pace in Feb- ruary, the latest sign that the euro zone’s fourth-largest economy re- mains mired in contraction. 10 n AIG is planning to jump back into U.S. property investing, re- versing efforts to downsize its real-estate business in the wake of its government bailout in 2008. 28 i i i World-Wide n South Korea’s conservative ruling party appeared likely to maintain control of Parliament by a slim margin, in a surprise out- come to an election that opposi- tion liberal parties were posi- tioned to win a few weeks ago. 6 n India’s top diplomat said the country is willing to discuss Kash- mir with Pakistan but Islamabad needs to act against militants that use its soil to attack India. 7 n Syria’s military continued an offensive against opposition strongholds, killing at least nine civilians, as a Thursday deadline for a cease-fire approached. 3 n Former Philippine President Arroyo and her husband pleaded not guilty to corruption charges related to a 2007 deal with Chi- nese telecom company ZTE. n Yemeni troops battled al Qaeda militants in fighting that left 31 people dead, raising the death toll from three days of clashes to at least 158, military officials said. n Sudan said troops from South Sudan captured the oil-rich town of Heglig, after clashes over an oil field near their disputed border. n Democratic Republic of Congo President Joseph Kabila called for the arrest of warlord Bosco Nta- ganda, who is wanted by the In- ternational Criminal Court for al- leged war crimes. n The French cabinet approved new measures to punish those who visit extremist websites or travel to weapons-training camps abroad, in the wake of killings by a suspected Islamic extremist in the nation’s south last month. Malaysia’s King Abdul Halim Mu’adzam Shah lifts a ceremonial dagger during his coronation as the country’s 14th king, in the capital Kuala Lumpur. A ge nc e Fr an ce -P re ss e/ M in is tr y of In fo rm at io n Inside World News: Japan’s finance minister talks tougher on yen. 4 Technology: Facebook needs a new playbook for Instagram. 18-19 Finance: China may let firms borrow yuan offshore. 21 Corporate News: Fujitsu’s ex-president loses lawsuit. 22 What’s News— weibo.com/pdfmags THEWALL STREET JOURNAL. Thursday, April 12, 2012 | 3 WORLD NEWS Fresh Clashes Ahead of New Syria Truce Deadline BEIRUT—Syria’s military contin- ued a countrywide offensive against opposition strongholds, killing at least nine civilians, as a Thursday deadline for a cease-fire ap- proached. Kofi Annan, a special envoy for the United Nations who brokered the cease-fire plan, traveled to Iran to rally support for the initiative. He expressed hope the violence could be brought to a halt. “Iran, given its special relations with Syria, can be part of the solu- tion,” Mr. Annan said at a news con- ference in Tehran. Iran is a prominent supporter of the Syrian regime. Despite Syria’s assurances on Wednesday that it will respect the deadline, regime forces continued to attack rebel-controlled towns. According to activists, at least nine civilians were killed in shoot- ings in several parts of the country on Wednesday and several others were arrested, the Britain-based Syrian Observatory for Human Rights said. In the town of Ankhel, Syrian se- curity forces conducted a series of morning raids looking for figures wanted by the authorities. Other raids were conducted in the north of Hama, a city where ac- tivists said at least five civilians were arrested, and in the Damascus suburbs. There were also fresh clashes in the province of Homs, where one civilian was killed. “I can hear shootings as we speak, but not as heavy as this morning,” Mohammed Saleh, an ac- tivist from the city of Homs said Wednesday. In the province of Deir Ezzor, two civilians were killed in raids by the Syrian army in the city of Kouriya, activists said. The Syrian Observatory for Hu- man Rights said Syrian troops had killed 38 people on Tuesday, and rebels had killed 19 members of the security forces. Syria’s state-con- trolled news agency reported the fu- nerals of 33 soldiers and security personnel the same day. Although the cease-fire is sched- uled to take effect at 6 a.m. Thurs- day, analysts saw little chance the effort will bring the violence to a halt. If the cease-fire fails, though, few options are left for the interna- tional community to stop the con- flict, they say. Meanwhile, Turkish media re- ported shots fired by Syrian forces early Wednesday hit a Syrian refu- gee camp just across the border with Turkey. It was the second time this week that Syrian forces have fired into Turkey, which has been harshly crit- ical of the Syrian regime. One scenario if the cease-fire plan collapses is that Turkey, along with Arab Persian Gulf states and Western foes of Mr. Assad, will take a more assertive stance and inter- vene in Syria. “Despite their fears, the Turks have plans for Syria, but they want to make sure that the Arabs make the lead drive against President As- sad,” said Hilal Khashan, a political- science professor at the American University of Beirut. BY NADA RAAD Collection Haute Joaillerie, L’Ame du Voyage. weibo.com/pdfmags 4 | Thursday, April 12, 2012 THEWALL STREET JOURNAL. WORLD NEWS: ASIA Indonesia Is Shaken by Strong Quakes Initial 8.6-Magnitude Earthquake, Centered 500 Kilometers Offshore From Aceh Capital, Causes Limited Damage JAKARTA—A massive earth- quake and strong aftershock rattled Indonesia’s westernmost province of Aceh on Wednesday, spurring fears of a tsunami in the same re- gion where a 2004 tsunami killed more than 200,000. The 8.6-magnitude earthquake was felt as far away as Thailand, Malaysia and India. The Pacific Tsu- nami Warning Center had issued a tsunami watch Wednesday after- noon in Asia but later canceled it, saying that while a tsunami was generated by the quake, the threat for most areas had diminished. The initial alert said the tsunami watch was in effect from Indonesia to India, Sri Lanka, Australia, Soma- lia, Oman, Iran, Bangladesh, Kenya, South Africa and Singapore. Indonesian President Susilo Bambang Yudhoyono said early re- ports were that there was limited damage. “There is no tsunami threat,” he said Wednesday evening ahead of a news conference with British Prime Minister David Cam- eron. “The tsunami early-warning system is working well and at the moment there are no casualties.” India also canceled its tsunami warnings and alerts for several states and territories, including the Andaman and Nicobar Islands in the Indian Ocean. In a statement, India’s Home Ministry said it had asked the chief secretaries of the Andaman and Nicobar Islands, and all east-coast states, to advise fishermen not to venture out to sea and to take other precautions. Teams from the National Disas- ter Response Force were placed on standby in case they were needed to carry out emergency relief efforts, the agency said. The U.S. Geological Survey said the powerful quake was centered about 30 kilometers beneath the ocean floor, about 500 kilometers from Aceh’s provincial capital. Indonesian television news showed crowded roads as people tried to drive away from the coast. “It felt like the earthquake back when we had a tsunami in 2004,” said driver and Aceh resident Edi, who like many Indonesians goes by one name. “Everybody ran around in a panic and we ran up a hill.” People in Banda Aceh screamed “God is great!” as they jumped into cars and onto the backs of motorcy- cles, clogging streets as they fled to high ground, according to the Asso- ciated Press. Coastal residents in Sri Lanka were told to move to higher ground. Thailand’s National Disaster Warn- ing Center issued an evacuation or- der to residents in six provinces along the country’s west coast, in- cluding the popular tourist destina- tions of Phuket, Krabi and Phang- Nga. Thailand later canceled its tsunami warning. Indonesia sits atop a web of fault lines that makes the sprawling archipelago prone to volcanic and seismic activity. A giant 9.1-magni- tude quake off the country on Dec. 26, 2004, triggered a tsunami in the Indian Ocean that killed 230,000 people, nearly three-quarters of them in Aceh. Indonesia’s government has im- proved its monitoring of earthquake data since then by positioning buoys to take sea-level readings and warn of potential tsunamis. Officials have noted the problem of getting timely information to people who live in remote areas of coastal Su- matra. Experts said the kind of devas- tation seen in the 2004 disaster and last year in Japan was caused by a particular type of earthquake. Dur- ing Wednesday’s quake, the tectonic plates were likely shifting sideways rather than up and down, leaving less of a chance for the giant waves, said Susanne Sergeant, a seismolo- gist at the British Geological Survey. “The earthquake today was dif- ferent from that in 2004 off Aceh and in Japan” last year, and less likely to create massive water dis- placement, she said. —Amol Sharma, Yayu Yuniar and Shibani Mahtani contributed to this article. BY ERIC BELLMAN Jakarta Indian Ocean SUM ATRA SINGAPORE MALAYSIA THAILAND 200 miles 200 km Banda Aceh PHILIPPINES I N DONE S I A MALAYSIA Area of detail Source: USGS The Wall Street Journal Epicenter of Dec. 26, 2004 earthquake 2:38 p.m., magnitude 8.6 4:43 p.m., magnitude 8.2 The Big Ones Largest earthquakes since 1900 Magnitude and Region 9.5 9.2 9.1 9.0 9.0 8.8 8.8 8.7 8.6 8.6 8.6 8.6 8.5 8.5 8.5 8.5 8.5 8.4 8.4 8.4 Chile Prince William Sound, Alaska Off the coast of Sumatra, Indonesia Kamchatka, Russia Near the coast of Honshu, Japan Colombia-Ecuador Offshore Maule, Chile Rat Islands, Alaska Off the coast of Sumatra, Indonesia Assam-Tibet Andreanof Islands, Alaska Northern Sumatra, Indonesia Chile-Argentina border Kamchatka, Russia Banda Sea, Indonesia Kuril Islands, Russia Southern Sumatra, Indonesia Mongolia Central Mongolia Tonga 1960 1964 2004 1952 2011 1