Sun hung kai suspended on friday as the corruption trial came to an end involving two billionaire brothers, i hong kongs former number two official. Walk me through what happened. There is a sentencing hearing scheduled for today so we would hear how long these men will be facing depending on what the judge decides. We are talking about hong kongs former number 2 rafael hui. The secondhighest position in hong kongs government. Also, the billionaire businessman raymond kwok and thomas kwok. Sacrede looks at whether payments and rentfree whether secret payments and rentfree properties were given. Thomas kwok was found guilty of conspiring to can commit publicing in office. It was that one charge related to a series of payments amounting to 1. 1 million. It is a drop in the ocean compared to what they are paying their lawyers. This money was actually basically to keep hui this post to sun hung kai. It is the most valuable Property Company. It is quite a big and powerful company. Rafael hui was found guilty of five charges. Each of these charges carries a penalty of up to seven years. These men can be looking at time. What about the company . How has that been affected by the case which has been in the headlines . Trading was suspended on friday as the verdict was announced. It will resume trading today. Immediately after the men were 2012,ed, this was back in the shares fell by 13 . That was the day after the arrest. In terms of the company itself, thomas kwok along with his brother raymond stepped down as chairman of the company. He also stepped down with other positions like managing director. They are keeping it in the family. Sun hung kai was founded by raymond and thomas kwoks father. Thomas kwoks son will be assigned as executive director. There is also walter kwok. The oldest brother staying outside the Company Business right now. Had several investigations. The company said regardless of the positions and backgrounds of the chairman involved, the Law Enforcement was according to the law. Revealed it stands ready to provide corruption prevention and education. The icac seeing this as the biggest highprofile case in hong kong. We will be watching those shares when they get underway. Overall, it has been another good day when it comes to equity trading. Lets take a look. Asia is reacting to what is happening on wall street as u. S. Stocks surge the most last week since october. It wasnt just the u. S. Stocks. It was equities around the world after the fact it would be patient when it comes to raising the interest rates. Lets take a look at asia. Asia reacting to what is happening on wall street. Japanese stocks were rising earlier in the day. Now, it is fractionally down but stocks have been rising for two days now. It will be the third consecutive day today if it rises within Energy Companies which is leading the gains after the crude prices rose and the yen weakened against the dollar. Later, we do have more Economic Data out of japan as they released the Monthly Economic report in the afternoon. We will get Economic Data in south korea. It is not trading. 1 higher. We have the finest ministry with the 2015 Economic Policy direction. They are expecting to cut the growth target rate which currently stands at 4 . Australia is doing well. They are rising 1 . 1. 2 . That is being led by Energy Shares. We can see the oil prices have been fluctuating greatly. We have seen after it rose its biggest rise in more than two years. This saudi arabia finance minister said it is confident that prices will rebound. Lets take a look at what is happening with the japanese stocks. It is all about oil movement. That asreports saying much as ¥500 billion to buy it. It is risen the most since 1974. Art thathave familym cut its growth forecast because they are saying the expansion will be slow because of the sales tax hike they had back in april. We have a nissan saying they will rise rate prices in russia and stopped taking orders for models there. Back to you. Lets take a look at sony under pressure from hollywood for canceling the movie the interview at the face of the hack attack. The trigger for the intrusion which washington is pointing the finger at north korea. We will look at how the film can be released and what options sony has. That is after the cinemas said they would not release it. Now sony is looking at streaming ondemand. They have to find a Distribution Partner which is so far there are no offers on the table. Youtube, netflix, amazon has declined to offer so far. The ceo of sony said they have not given into the hackers despite the fact that they canceled the christmas release of the film. It does have a streaming Video Service called crackele that could be a possibe option. The rabbit reports they could release it for free and reduced and distribute the film that way. It is costing a fortune so far. We have seen in north korea come out and say any u. S. Punishment over this will lead to damage thousands of times greater. This is coming despite them saying it was in them. Altra harsh action is what they are threatening after the u. S. Pointed the finger at north korea on friday. Barack obama has gone into the mix. He called sonys decision a mistake. He spoke to cnn over the weekend and said he wished sony approached him before they made the decision to pull the movie. He said he probably would not have done told them to do that. I dont think it was an act of war. I think it was an act of cyber vandalism that was very expensive. We take it very seriously. We will respond. , not socyber vandalism much active or from president obama. There was reaction from senator john mccain who said this is a new form of cyber war and we need to react vigorously. It keeps on developing. Thank you very much. North korea is denying any involvement anin the hack. Pyongyangs alleged link of attackers goes far beyond its borders. Joining us is sam kim. What do we know about the north korean hacking ability . Far frome know so south korean officials is that north korea operates one to one which has about 3000 hackers. These hackers are not necessarily very advanced in their capabilities but they have enough skills to hack emails, steel Important Information from companies as we have seen in the hacking. Their programs can be hidden of the months in other peoples emails until the hackers ordered these emails to pass the networks they are very dan buried in. Why have they developed a hacking team . Is it because it is cheap . Or a big impact . You are right. It is very Cost Effective. It is not cost a lot of money to put together a team of hackers, especially of these are kids just out of schools that are training them in technology. North korea knows better than anyone that modern warfare is basically electronic warfare. It involved a lot of Electronic Devices so north korea really does not have the money and resources to put together these weapons that are as modern as those weapons operated by the u. S. Or south korea. What it does is raises a team of hackers who are able to penetrate into foreign enemy networks and disrupt and paralyze the networks that are used to operate these modern weapons. It is very Cost Effective in terms of the money they have to spend. Also, rather than building weapons, they can build a very effective defense weapons which helps them increase the odds of surviving in the war, in any war that breaks out. Very poor country. How can it build up such a cyber unit . It is true. It is a very impoverished company country. You have to understand this is also a dictatorship. In a country like north korea, what the leader wants is basically done by the people surrounding him. The economyf what is. What the dictator wants, the most resources. If he wants a cyber hacking unit and he thinks that would be useful in a war, people around him will basically handpick the smartest and the most loyal kids from schools. Then, these kids are put into some of the better departments in punyongyang. Thank you so much for that. Sam kim joining us with a look at north koreas hacking ability. An irresponsible increase lashing out at the Oil Producers, next. We are back in a couple of minutes. Nonmembers for the cut in oil. The united air emirates says other country should stop there a responsible increase. Crude heading for one of its largest today jumps in five years. Taking a look at west texas up by two thirds of 1 . Also, brent crude trading. What are the opportunities in oil . I am joined by a hedge fund manager. They have Energy Shares and he is in singapore. Thank you for joining us. What do you think of these comments coming from saudi arabia and the United Arab Emirates . I find it quite sensitive because it is quite bizarre in any other industry to expect lowcost producers to drop supply while highcost producers continue. Ee know that opec are th lowcost producers of oil. We expect them to continue. This is the more rational decision. We expect u. S. Jail producers to drop off over the next couple of quarters. There are two types of cost moderate or shortterm. The shortterm people can stretch it for another three months or six months. You will see as the hedges run out, a lot of Oil Producers have oil to hedge production over the next year. As these hedges run out, we will see them run out of supply beginning with u. S. Shale surprises suppliers. A lot of the u. S. Suppliers have high rates. It drops by 50 per year. Oil drops another 15 per year. There is another difference in the nature of the suppliers. 1 5 of theut producers of Oil Companies and production companies. There is Exploration Companies and production companies. We dont expected to drop dramatically. Production is expected to continue. We will see the highcost producers drop out. Does that mean this reason rally we have seen of the bottom of the oil for the time being . It is theard to say bottom right now. We would expect the readjustment over the next couple of quarters. The data does not have too much longterm meaning in my view. We would expect the ruble depreciation be linked because it is a major exporting country. They are maintaining the oil experts but the ruble will depreciate. We see a strong linkage with that. Russia is key to the oil puzzle just as much as saudi arabia and the u. S. Shale companies are. That. Sia has confronted you are investing in russia as well. You said how to pick stocks. You have to say very carefully. You have to be very carefully even if you want to drive there. Indeed. Have to look at companies a this locating a dislocated economy. We know the rates went from has to 17 which means oil to be repriced down by 30 . This is par for the course. Seeingrom this, we are panic from some Foreign Investors. Russia has the risk of capital controls. A regime change could happen next year. We see all these scenarios. We are try to factor in these scenarios. We are looking at assets that will survive any scenario. There is a port. It lasts forever. You have trains. It is hard to replace tracks. We are looking at railcar operators, boats. Were looking at some companies with little or no debt that does basics like produce a chicken or pork. Reale not investing in Estate Companies or big consumer demand. Were looking for franchises that will sell items that are necessary. Thank you for joining us. Have a fantastic christmas. Up, 1960s building in hong kong defied the wrecking ball. We will have a look at this rare project in a special report, next. Breaking news. Kai began trading with a gain of 2. 4 . Chairs was suspended on friday before the verdicts of the citys biggest ever Corruption Case. They were found guilty of bribing a government official. Terror it down and start again that is what we typically see in asia. Entrepreneur says there is another way. There was nothing really in the market that is comparable to it because it is very well finished interior. Theake a stroll along waterfront and you will notice one building sticks out from the rest. It is a labor of love. I am happy to see it all come together. The labor you can tell from these before pictures a 1962 lowrise in need of a good bit of work. Most developers wouldve torn the building down and started over. Victoria allan, the property veteran, loved the potential. I think soma developments go up in hong kong that have plenty of rooms and no place for storage. I wanted to do something that was totally different. She did the unthinkable 10 years ago. Restore the building but expand the space like a new york city loft. This is the original space of the building with its curved corner so we wanted to keep that. She kept the original name of the building which means lets get prosperous together. The conversion came with its share of hurdles. First, getting the approval from the Buildings Department and getting a bank to give her a loan which failed. She was able to complete the project thanks to private investors. I realized i could not get any financing from a bank. At that time, they would not lend on buildings. Finally, how to install an elevator to the top floor. Now linked to the private rooftop. This is the rooftop, the penthouse for the top floor apartment. It has a fantastic view. One unit per floor about 1300 square feet. 6,000 tos from 10,000 a month. Kongs a bit of hong heritage maybe what makes it home and unique. At this point, doing a conversion on something and not realizing where you are. This one has been modernized. Going to be looking at another aspect of hong kong after the break. The city has enjoyed its best ipo run for years. We will look behind the headlines and a less flattering headline behind it. We will tell you what that is. We will have all of the opening numbers and a look at sun hung afteroperties up 2. 4 trades were suspended on friday. Markets forpacific Third Straight daily advance. Shares returned from its sun hung kai. Hon lets find out what is going on on the markets. We are looking at one of the company. Ies. Asia markets trading like this waking up to a third on wall street as wall street starts the most since october. China has just opened trading up a 1. 6 . Is slightly down but it is been trading up earlier in the morning. The Chinese Securities Regulatory Commission has been reporting they will set up a special task force to crack down on stock manipulations. We will see how that affects trading for the rest of the day. Bytralian out trading up led Energy Shares. Oil has been fluctuating and that has been affecting australia mining stocks. Lets look at what is happening with the stocks today. They were looking at casino stocks because over the day the president of china was in macau. Hasanticorruption rally wiped out 75 billion from casino stocks. They are taking the biggest beating and now trading down. 16 . Galaxy is down. 23 . Chairmankai today its has resigned after he was convicted of conspiring to commit misconduct in public office. Shares started trading today but they seem unharmed from that conviction. Kwokurse, only one of the brothers was convicted. His younger brother raymond was cleared of all charges. Raise 4s supposed to billion among the markets. The worlds fourthlargest Security Firm also down. Back to you. Following the announcement that it is planning to raise a massive a knot of money in hong kong. What are we looking at . Billion was what they planned to raise. They will be selling shares at a discount. I thought they did that. It is a discount compared to notclose on friday but really compared to where it was before. The run up on the shares of these brokerages. It is now allowed them to raise of this much money. The stock becomes a currency at this point. What are they going to use 4 billion on . 6 of the proceeds will be used on other businesses. 10 will be going to replenishing working capital because they want to diversify into other revenue streams. It has been margin trading that has been fueled margins in trading. We have seen these brokerage stocks in particular. The market cap, not by revenue. November, it was worth about as much as 21 billion. That is the red line market value. 55 it may about be a little lower about 55 billion u. S. Dollars. 55probably went from 21 to in only six weeks. It should be there by christmas. Where does it rank now . Ubs is third. Goldman sachs is still number one. We have moreland Morgan Stanley. Ubs is now third. Jpmorgan andude these compare to us because it is more of a bank than a brokerage. It gets more of its revenue from commercial banking. C also has a commercial banking arm which is worth about 47 billion. You put that together, that is 100 billion. Have a look at revenues. Still way behind. Goldman sachs and Morgan Stanley are more global companies. Ubs between 8 billion. Citic is about 4 billion. Still some way to go. What is fueled of this search in valuations surge valuations are volumes which has been four times weve seen in china. Imagine the markets being interested. A lot of these people are using that to buy equities. It is close to one trillion. Not necessarily good thing but it is pushing up the value not only of citic. All these other financial institutions. Thank you very much. Lets get you up to speed with some of those corporate headlines so far this morning. Obama has described the sony hack as vandalism. Washington has blamed north korea for the attack and the president is considering putting north korea back on its list of state sponsors of terrorism. North korea denies any involvement in the sony hack and has proposed a joint investigation. The final installment in the hobbit trilogy was number one at the box office in north america raking in more than 56 million in ticket sales. It beat sonys remake of annie. The 1980 two movie was brought ford after copies were released online by hackers. Sony executives do not believe sales were hit by the online release. At moreas been valued than 45 billion after a new investment round. The company is raised more than 1 billion in funding. The low cost Online Business model propelled