【华尔街日报亚洲版】February 22nd 2013

VOL. XXXVII NO. 120 FRIDAY - SUNDAY, FEBRUARY 22 - 24, 2013 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.040/10/2012 SK.M ENPEN R.I.NO:01/SK/M ENPEN/SCJJ/1998 TGL.4 SEPT 1998 Can Mod Be Modern? Black & White Looks for Spring OFF DUTY W1 Can Mod Be Modern? Black & White Looks for Spring OFF DUTY W1 As of 12 p.m. ET DJIA 13865.91 g 0.44% FTSE 100 6298.10 g 1.52% Nikkei 225 11309.13 g 1.39% Shanghai Comp. 2325.95 g 2.97% Hang Seng 22906.67 g 1.72% Sensex 19325.36 g 1.62% S&P/ASX 200 4980.10 g 2.33% WSJ.com (India facsimile Vol. 4 No. 181)ASIA EDITION Companies Seek to Avoid ChinaNewYearHangover For toy maker Bridge Di- rect, Easter now begins in Au- gust. That is when the Boca Ra- ton, Fla., producer of Inkoos stuffed monsters and Justin Bieber dolls has to file orders with its Chinese suppliers to ensure delivery by the spring holiday. It used to place orders closer to the key selling pe- riod, which allowed it to get a sharper sense of demand and better manage its cash. But now the greater concern is making sure it doesn’t get left shorthanded because of China’s New Year holiday. The company is one of many from the U.S. and other coun- tries that are closely watching China as factory workers slowly return this week from the coun- try’s long Lunar New Year holi- day. Every year, millions of China’s 250 million migrant workers leave their factories and travel across the country to visit their families at home. The problem for toy and apparel makers in particular is that fewer and fewer workers are re- turning to the factories when the break is over. For the world’s manufac- turers, post-holiday no-shows are an increasingly frustrating part of China’s tightening la- bor market. The trend reflects rising expectations among China’s workers, who are seek- ing out higher pay even as they show less inclination to work in factories. Many work- ers use the break to look for new jobs or start families. Demographics are exacer- bating the problem. China’s one-child policy, implemented in 1980, has already started to erode the labor supply. In 2005, there were 120.7 million Chinese people between the ages of 15 and 19, according to estimates from the United Na- tions. By 2010, the number had fallen to 105.3 million. By 2015, it is expected to drop to 94.9 million. Another factor is workers at toy and apparel factories are shifting to more lucrative industries like electronics. Un- Please turn to page 14 BY DANAMATTIOLI AND LAURIE BURKITT Bumi Vote Is Defeat for Rothschild One of London’s longest- running and most acrimoni- ous corporate disputes took a decisive step toward resolu- tion Thursday as shareholders in Indonesia-focused coal miner Bumi PLC mostly re- jected proposals to throw out most of the company’s board and senior management team. The vote was a defeat for financier Nathaniel Roth- schild, who had been trying to reassert his control over the venture he co-founded in 2011, and paves the way for Bumi to end its relationship with Indonesia’s powerful Bakrie family, which soured amid allegations of financial irregularities. Members of Bumi’s board, have been in the middle of a public year-long battle be- tween Mr. Rothschild and the Bakries, said they hoped they could now return their focus to boosting shareholder value in the coal miner. However, Mr. Rothschild said he would continue to push for manage- ment change at the company. The vote at Thursday’s ex- traordinary general meeting in London was the first time regular shareholders could take sides in the battle for control over Bumi. Mr. Roth- schild, who has a 15% stake in the company, had proposed replacing 12 of the 14 board members—giving the com- pany a new chief executive, chairman and chief financial officer—and reinstating him- self as a board member. The proposal would have removed most of the people who had backed the Bakries, but Bumi shareholders ap- proved only three of Mr. Rothschild’s 22 resolutions. They agreed to the removal of Bumi directors Jean-Marc Mizrahi and Nalinkant Rathod and the appointment of Rich- ard Gozney to the board. The Please turn to page 14 By Eric Bellman in Jakarta, Indonesia, and James Herron in London Dozen Killed in Hyderabad Blasts MUMBAI—Security forces across India went on high alert Thursday after at least 12 people were killed and more than 70 injured in two explosions in Hyderabad city, in what state and federal offi- cials suspect was a coordi- nated terror strike. Federal Home Minister Su- shil Kumar Shinde said the government had “intelligence inputs of expected blasts somewhere in the country for the past two days and had alerted all state govern- ments.” He didn’t offer further de- tails or say whether there was specific information about an attack on Hyderabad, the cap- ital of Andhra Pradesh state and home to the local units of several overseas companies such as Microsoft Corp., In- ternational Business Machines Corp., Oracle Corp. and Google Inc. Mr. Shinde said that the two blasts took place within 150 meters of each other, and that the bombs were placed on bicycles in a crowded mar- ket in the Dilsukhnagar neigh- borhood. Federal Home Secretary R.K. Singh said that “when there are two blasts, it’s obvi- ously a terror attack.” The death toll is likely to go up because several people have sustained critical inju- ries. A team of forensic experts from the National Security Guard—India’s top counterter- rorism commando force—and officials from the federal in- vestigation bureau are on their way to the blast site. Indian Prime Minister Manmohan Singh condemned the blasts, asking people to stay calm and directing fed- eral authorities to give all possible help to Andhra Please turn to page 5 BY KENANMACHADO AND RAJESH ROY Chinese regulators get tough on IPOs in an effort to improve the quality of companies issuing shares in Shanghai and Shenzhen. Markets ................. 15 Dozens of Syrians were killed and wounded in a wave of car bombs and mortar attacks. World News ............ 5 Inside A woman grieved at the Omini hospital Kothapet following bomb blasts in Hyderabad late Thursday. Authorities suspected terrorism. Agence France-Presse/Getty Images Copyright © 2012, Oracle and/or its affiliates. All rights reserved. oracle.com/exadata or call 1.800.ORACLE.1 5of the 5 TopBanks Run Exadata Fast Reliable Secure weibo.com/pdfmags 2 | Friday - Sunday, February 22 - 24, 2013 THEWALL STREET JOURNAL. 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USPS 337-350ISSN 0377-9920 SUBSCRIBE TODAY wsj-asia.com/fpf or scan this code PAGE TWO ONLINE TODAY Most Read in Asia 1. China Holiday Roils Factories 2. Sony Announces PlayStation 4 3. Google Developing Touchscreen Devices 4. Facebook Co-Founder Sees Opportunities in Asia 5. U.S. Ups Ante for Spying On Firms Most Emailed in Asia 1. Long Lines in Airports Lead to Wheelchair ‘Miracles’ 2. China Holiday Roils Factories 3. Welcome to Fantasy Island 4. U.S. CEO Blasts French Work Culture 5. Merger News Jumped Gun Video: Innovation live.wsj.com Tarun Khanna, professor at Harvard Business School, explains how diversity begets success. Tech: Video Microsoft executive Nancy Tellem speaks about original content efforts. live.WSJ.com China Real Time wsj.com/chinarealtime The trial of an octogenarian for a murder he allegedly helped commit during the Cultural Revolution has ripped open historical scars. i i i Business & Finance n China’s stock market fell 3%, its biggest drop in more than a year, partly on worries about a potential fresh crackdown on the country’s rebounding property sector. U.S. stocks fell on disap- pointing economic data. 15, 22 nWal-Mart’s earnings rose 8.6% in the latest quarter, helped by a lower tax rate and expense con- trols, but it forecast flat U.S. same-store sales this quarter. 16 n Sony moved to reinvent its PlayStation videogame console, demonstrating faster, graphics- rich hardware with new Internet- based features to counter stiff Web competition. 19, 28 n The ECB said its interest in- come earned from Greek bonds last year helped boost its 2012 net profit by more than a third, to $1.32 billion. 5 n Lego said sales increased 25% in 2012 as a new line aimed at girls and more movie-themed building sets helped counter elec- tronic competition. 19 n Carlyle’s profit and revenue declined in the fourth quarter, de- spite a flurry of deal making that the private-equity firm’s leaders said would continue in 2013. 20 n Citigroup Chairman Michael O’Neill has concluded that break- ing up the bank doesn’t make sense now, given economic and regulatory uncertainty. 15 n Boeing is expected to launch a formal plan to get its Dreamliner back into service, presenting fixes aimed at reducing fire hazards from the jetliner’s batteries. 17 n Qantas said its first-half profit more than doubled, as compensa- tion payments from Boeing for late plane deliveries masked a weak operating performance. 17 n Google has developed the first touch-screen laptops powered by its Chrome operating system to be sold later this year. 18 i i i World-Wide n Eight Indonesian soldiers were killed in attacks by gunmen in Papua, in the worst instance of vi- olence against government secu- rity forces in the restive province in more than a decade. 4 n A suspected member of a crime syndicate allegedly respon- sible for fixing soccer matches surrendered to police after arriv- ing in Italy from Singapore. 3 n South Africa replaced the lead investigator on the murder case against athlete Oscar Pistorius, af- ter the detective was found to be facing his own murder charges. 3 n Industry groups estimate the strike in India will have cost busi- nesses as much as $4.8 billion. 3 n India plans to launch a satellite in October that will orbit Mars and collect data on the red planet. Japanese Prime Minister Shinzo Abe waves before his departure for the U.S., where he will meet with President Barack Obama on Friday. Abe, who has promised to build stronger economic and security ties with Washington, also will give a speech on his economic policy at the Center for Strategic and International Studies. A ss oc ia te d Pr es s Inside World News: China, Thailand urged to do more on ivory trade. 4 Corporate News: Facebook co-founder focuses on Asia. 18 Markets: Selloff rattles Asia’s bond instruments. 22 What’s News— weibo.com/pdfmags THEWALL STREET JOURNAL. * * Friday - Sunday, February 22 - 24, 2013 | 3 WORLD NEWS Probe Into Game-Fixing Nets Arrest In Italy MILAN—A suspected member of an international crime syndicate al- legedly responsible for fixing hun- dreds of soccer matches around the globe surrendered to police Thurs- day after arriving in Italy on a flight from Singapore. Slovenian Admir Suljic gave him- self up to police at Malpensa inter- national airport west of Milan early in the day, according to a police statement. Police had been informed of his arrival and his intention to surren- der, it added. A video accompanying the statement shows a man with his head and face covered by a hood being escorted by police down a staircase. Mr. Suljic had been wanted by an Italian public prosecutor on sus- picion of belonging to a criminal syndicate dedicated to committing fraud in sports, the statement. Mr. Suljic hasn’t been charged with any crime. He had been on the run since December 2011, spending a long pe- riod in Singapore where he was in touch with other people who headed the syndicate, it said. Attempts to reach a lawyer for Mr. Suljic weren’t immediately suc- cessful. Mr. Suljic was described in the statement as a central figure in the investigation led by the public pros- ecutor’s office in the town of Cre- mona, located southeast of Milan. Police were bringing him to Cre- mona where he would be put in prison before being interrogated, a police spokesman said. About 50 suspects have been ar- rested in the investigation, the spokesman said, adding that four others still remained at large, in- cluding three Singaporeans and a Macedonian. The alleged syndicate, made up of Singaporean and Balkan nation- als, is suspected to have been in- volved in the fixing of Italian pro- fessional championship matches from 2009 to 2011, the statement said. The investigation has enlisted the help of judicial authorities throughout the world. This month, Europol, a coordi- nating group for European police forces, said it had uncovered evi- dence that 680 soccer matches played around the world—including in some of the sport’s biggest tour- naments—may have been fixed by criminals. The matches were played everywhere from Asia to Africa to South America. Europol uncovered what is says are more than $10.9 million in al- leged betting profits and at least $2.7 million in corrupt payments. Its findings pointed to some 425 people allegedly involved in 15 countries. In a 2011 arrest warrant, Cre- mona’s public prosecutor said it suspected Dan Tan Seet Eng, the al- leged leader of the syndicate, to be living in Singapore. In a newspaper interview published in 2011, Mr. Tan denied any involvement in match- fixing. Mr. Tan couldn’t be reached to comment Thursday. Singaporean police have said they were helping out in the inves- tigation. BY GILLES CASTONGUAY Police Pull Pistorius Detective PRETORIA, South Africa—South Africa’s police department replaced the lead investigator in the murder case against Olympic athlete Oscar Pistorius on Thursday, after the de- tective was found to be facing at- tempted-murder charges of his own. South African Police chief Riah Phiyega told reporters she reas- signed the investigation to the country’s most senior detective, Lt. Gen. Vinesh Moonoo. “We recognize the significance, the importance and severity of the matter under investi- gation” Ms. Phiyega said. Police spokesman Neville Malila said the department found out only on Wednesday that seven counts of attempted murder had been rein- stated against chief investigating of- ficer Hilton Botha, the same day he testified in the Pistorius case. Mr. Malila said the counts relate to an incident in 2011, when Mr. Botha and two other officers allegedly fired their weapons at a moving minibus in an attempt to stop the driver. No one was killed. The spokesman said charges were reinstated at the beginning of February, but hadn’t been communi- cated to the department, including Mr. Botha, before Mr. Pistorius’s bail hearing. Mr. Botha couldn’t be reached to comment. The change in investigating of- ficer is a blow to the state’s case against Mr. Pistorius for the alleged premeditated murder of his 29-year- old girlfriend, Reeva Steenkamp, a model and reality TV star who was shot and killed in a bathroom at Mr. Pistorius’s home on Feb. 14. A spokeswoman for the National Prosecuting Authority, Bulelwa Makeke, said the agency supported the removal of Mr. Botha from the investigation because his continued presence in the investigation cast “a negative light on the case.” The state alleges the Olympic and Paralympic runner fired shots through a closed bathroom door af- ter what it says could have been a Valentine’s Day argument with his girlfriend. Mr. Pistorius’s legal team says he fired shots through the bathroom door, thinking there was a burglar inside and feared for his safety. Mr. Pistorius said through an affidavit this week that he had no intention of killing his girlfriend. The judge at the Pretoria Magis- trate Court is expected to rule Fri- day on whether Mr. Pistorius is eli- gible for bail. The state has argued against bail. Typically bail hearings wrap up within a morning, legal experts say. But the high profile of Mr. Pistorius and Ms. Steenkamp has turned the bail hearing into a mini-trial. The case has drawn new scrutiny of the life of Mr. Pistorius, who lost his lower legs as an infant, but went on to compete in the Olympics against able-bodied runners last year. He lived in a gated community in Pretoria and owns two other properties in South Africa. Mr. Pistorius has earned millions from endorsements, which due to the case have come under threat. Nike Inc. said in a statement that it suspended the contract of Mr. Pisto- rius. “We believe Oscar Pistorius should be afforded due process and we will continue to monitor the sit- uation closely,” the sporting goods and sportswear maker said. Sunglasses maker Oakley took a similar step. “In light of the recent allegations, Oakley is suspending its contract with Oscar Pistorius, effec- tive immediately. Our hearts are with the families during this diffi- cult time and we’ll continue to fol- low the developments in this tragic case.” BY DEVONMAYLIE Oscar Pistorius, above, appeared in court in Pretoria again on Thursday, as did Hilton Botha, right, who was removed as lead investigator in the case. Re ut er s (2 ) Millions in India to Resume Work Friday MUMBAI—Millions of Indian workers are expected to return to work Friday after a two-day strike that industry associations estimate will have cost the country’s busi- nesses between $3.7 billion and $4.8 billion. The strike called jointly by 11 trade unions affected industries such as banking, transport, automo- bile, port and dock, power, petro- leum, coal and steel. The demands of the unions include steps to tackle inflation and corruption, create jobs, better enforce labor laws, offer universal social security and ensure pensions for all. The strike is ending on a day when Parliament began a crucial session where the federal govern- ment will present its budget for the fiscal year starting April 1. President Pranab Mukherjee didn’t mention the strike in a speech to lawmakers Thursday detailing the government’s policies. Earlier this week, the govern- ment of Prime Minister Manmohan Singh set up a panel of ministers to deal with workers’ demands, but the unions weren’t satisfied with that step and went ahead with the strike. “If the government doesn’t re- spond positively [to the demands], naturally we have to further inten- sify the struggle,” said D. Sachdev, a spokesman for the left-leaning All India Trade Union Congress. The strike affected normal life in states including Gujarat, Bihar, Ut- tarakhand and Kerala, news agency Press Trust of India reported. In New Delhi, the nation’s capi- tal, public transport was partially hit with taxis and some buses off the road, but the city’s metro train service wasn’t affected. In Mumbai, the country’s financial hub, taxi, bus and train services were normal. Except for some minor incidents, there weren’t any reports of vio- lence Thursday. On the first day of the strike, some vehicles were set on fire in Noida in Uttar Pradesh state. The Confederation of Indian In- dust