Bribery allegations hover over Shanghai Pengxin subsidiary, Fundies catch ‘Milford chill,’ Robots in the workplace

In NBR Print today: A Chinese company half-owned by Shanghai Pengxin and aiming to be the eventual owner of Lochinver Station is busy fighting off allegations of bribery, reports Sally Lindsay. China-listed Hunan Dakang [SZ:002505] has told the Shenzhen Stock Exchange the extensively reported business stories suggesting officials were bribed before the company’s listing are incorrect. New Zealand’s OIO, considering an application from Shanghai Pengxin subsidiary Pure 100 Farm for the $88 million purchase of the central North Island beef and sheep station, has told NBR any open and available source of information will be taken into account. That includes information on the internet.

The furore seems to have died down over the impact of non-resident Chinese investors in the Auckland property market. But as Michael Coote writes, there’s anecdotal evidence to suggest they’ve been scared off or at least held back when confronted by the government’s bogey of the taxman. An Auckland conveyancing solicitor reckons Chinese buyers have gone quiet lately and that auctions held by a dominant realtor in the city have had fewer attendees and more properties passed in. “The Chinese are pulling out; I think it’s wait-and-see as the legislation still isn’t passed so no one knows what to do,” she says.

The Financial Markets Authority’s investigation into Milford Asset Management is having a chilling effect on the wider funds management industry, particularly when it comes to talking to journalists. The FMA issued some guidelines for fund managers last month and, while the FMA says there’s nothing new in them, some managers have decided it’s easier just to stop talking to the media. However, others are saying they don’t see any need to change. Jenny Ruth reports.

Robots are said to be at the tipping point of becoming cheap and safe enough to work alongside humans in the workplace. Could it boost New Zealand’s low productivity? Fiona Rotheram profiles several companies working on robotics and finds the agriculture and healthcare sectors are leading the charge, with early adoption most likely to be in the home and in aged care, where so-called ‘healthbots’ are already helping elderly people by taking their blood pressure.

The lack of growth stocks and the retreat to the trenches for an undefined future of reduced economic activity is putting investors on their mettle, writes Nevil Gibson in Margin call. Many will just ride it out. Others will kick themselves when a stock springs a surprise, as Spark did last month when it announced a bigger dividend payout. One company that is perhaps more growth orientated is local bank Heartland [NZX:HNZ]. But the share price hasn’t always reflected that. Now two brokers rank it as an outperformer.

A sharp downward revision to the economic outlook was signalled by the Reserve Bank yesterday when it further cut the official cash rate. The Reserve Bank may not be projecting a recession although governor Graeme Wheeler says factors such as a sharp correction in China or a drought could cause a recession. Jason Walls investigates the impact a drought would have on the economy and whether any efforts are being taken to mitigate the risk.

Lines companies are so rich they’re throwing money away – just not to their owners. Tim Hunter casts his eye over Invercargill firm The Power Company, which just lost $51 million on buying a stake in lines utility Otagonet. But wait to you read how much it paid for the business.

Insurance company CBL Corporation is trying to woo investors for its $132 million IPO but do Kiwi investors understand the business? Duncan Bridgeman reports.

Are children who drown in Bodrum more valuable than those who perish in Bredjing? Mathew Hooton on the power of photojournalism.

Meanwhile, Rob Hosking says the prime minister could have picked RMA reform but, no, he chose a fern frond flag instead.

In property, Sally Lindsay tracks the number of skyscrapers and the world’s economy and Chris Hutching reveals the level of pre-commitment rate needed for Precinct Properties’ [NZX:PCT] redevelopment of the Downtown Shopping Centre in Auckland.

Shoeshine looks back on some earlier failed takeovers and compares Briscoe’s [NZX:BGR] tilt at Kathmandu [NZX:KMD]. Will shareholders kick themselves for not accepting?  

NBR Special Report: Eco Business – Sustainability.

All this and more in today's National Business Review print Edition. Out now