Lead Stories
HKEx’s chief defends LME deal, says will ‘eventually recoup’ the £1.4bn paid
Henry Sanderson, Neil Hume – FT
Charles Li, head of Hong Kong Exchanges and Clearing, defended his £1.4bn purchase of the London Metal Exchange, saying it was a rare asset that would eventually recoup the money paid for it.
https://goo.gl/zz5RVX
Hibor’s Frightening Halloween Turn; The cost for banks to borrow Hong Kong dollars from each other just shot up to a nine-year high
Here’s a Halloween mystery: The cost for banks to borrow Hong Kong dollars from each other just shot up to a nine-year high.
https://goo.gl/tD4ebJ
CME to offer bitcoin futures; Cryptocurrency to join stable at world’s largest exchange group by year-end
Gregory Meyer in New York and Adam Samson in London – FT
CME Group, the world’s largest exchange operator by market value, is readying plans to offer futures on bitcoin, giving momentum to cryptocurrencies’ move away from the fringes of finance.
https://goo.gl/8g4iLM
China to take centre stage at Bonn climate talks amid vacuum left by Trump
Emily Feng
China is positioning itself to take a lead role at next week’s climate talks as it moves to fill the leadership vacuum left by the US, said the country’s top climate negotiator Tuesday.
https://goo.gl/nyiuZu
Exchange News
Focus – Monthly insights from the WFE and our Member Exchanges
World Federation of Exchanges
Loh Boon Chye – CEO, Singapore Exchange (SGX)
Kesara Manchusree – President, The Stock Exchange of Thailand
Looking back at the WFE & Imperial College Technology Conference – a video
JPX kick starts IOSCO’s inaugural World Investor Week 2017
NSE launches state-of-the art data centre
CEO Letter
Statistics
MLex
Key dates
Exchange headlines
https://goo.gl/CTe53Y
Report on Initial Public Offering Applications, Delisting and Suspensions
HKEX
https://goo.gl/nP2bxL
FinTech News
Asia’s Share of Blockchain Deals Is Booming While North America’s Is Shrinking
By Surbhi Jain – Frontera
Why are blockchain applications practical emerging markets? The Bitcoin surge has put blockchain or distributed ledger technology on every investor’s radar. While market participants remain divided on the Bitcoin boom continuing or going bust, there are very few contesting the growth and potential of the blockchain technology behind it.
https://goo.gl/gtu6Xr
Regulatory News
ASIC publishes business plans
ASIC
ASIC today published its 2017–18 business plans.
Each year ASIC publishes business plans for each of the sectors it regulates. These are published by 31 October. This is part of ASIC’s commitment to transparency and accountability.
https://goo.gl/P7UbKm
China-backed buyout fund founder charged in U.S. insider trading case (LSCC, IMG)
By Liana B. Baker – Reuters
The founder of a private equity firm with Chinese state backing has been charged with insider trading related to the attempted acquisition of Lattice Semiconductor Corp, U.S. authorities said on Monday.
https://goo.gl/mv89ax
Investing News
Franklin Templeton opens a new front in the ETF fee war; Asset manager enters the passive ETF arena with aggressively competitive fees for single-country funds
By Ryan Vlastelica – Financial News
It seems no part of the ETF marketplace is safe from the downward pressure that is perpetually pushing fees lower, MarketWatch reports.
https://goo.gl/nkCNJW
Japan
Bank of Japan keeps policy on hold; Optimism over inflation forecast suggests no need for extra monetary stimulus
Robin Harding in Tokyo – FT
The Bank of Japan has kept monetary policy on hold as it made slight downgrades to inflation forecasts but predicted steady economic expansion.
https://goo.gl/bd5LPn
Japan’s banks plan 33,000 job cuts in digital downsizing
Finextra
Japan’s megabanks are planning to make huge, long-term cuts to their workforces as they increasingly turn to artificial intelligence (AI) and automation in a bid to streamline operations and cut costs.
https://goo.gl/sfCH73
Japan Industrial Output Forecast to Rebound After Sept. Drop
By Yuko Takeo
Japanese industrial production is forecast to rebound this month after a drop in September, while the labor market remained the tightest in decades and household spending fell modestly.
https://goo.gl/axbNaL
Investors Jump Aboard as Japan Brewers Pursue Drinkers Overseas
By Lisa Du and Grace Huang – Bloomberg
Kirin, Asahi and Sapporo are trading near multi-year highs; Earnings this week still may show impact from weak home market
From a small Californian brewery to a 175-year-old Czech pilsner brand, Japanese beermakers are in hot pursuit of more drinkers around the world as their home market languishes.
https://goo.gl/b6VcE1
Mainland China
Banks benefit from China’s economic rebalancing; ICBC is trading above book value in Hong Kong for the first time in two years
Henny Sender – FT
As part of China’s anti-corruption drive, the free liquor and even bottled water disappeared from the hotels housing guests for the 19th Party Congress, which concluded last week. But despite the austere note on which the core leadership insisted, there was a congratulatory air about the proceedings.
https://goo.gl/mTnKCh
China emerges as job market of choice for analysts fleeing EU’s MiFID II
Japan Times
Karen Tan finished her master’s degree in mathematics at the University of Cambridge three years ago and set her sights on a career in U.K. finance.
https://goo.gl/iioSxG
China bond yields down from 3-year high after PBoC cash injection; New liquidity eases market jitters over deleveraging campaign
Gabriel Wildau in Shanghai – FT
Chinese bond yields steadied near three-year highs on Tuesday after the central bank injected cash into the banking system and eased concerns that a campaign to curb corporate debt will spur aggressive tightening.
https://goo.gl/vRq1Do
The challenge of Xi Jinping’s Leninist autocracy; Democracies have to recognise their failures to counter a China that sees itself as an ideological rival
Martin Wolf – FT
Whether you like it or not, history is on our side. We will bury you!” Thus in 1956 did Nikita Khrushchev, then first secretary of the Communist party of the Soviet Union, predict the future.
https://goo.gl/R14Jvc
China, Russia Put Millions in This Startup to Recognize Your Face
By Lulu Yilun Chen – Bloomberg
Face++ said to attract China state venture fund, Ant Financial; Russia-China Investment Fund, SK Group also took part
Megvii Inc., a Chinese developer of facial-recognition technology, has raised about $460 million from investors including billionaire Jack Ma’s Ant Financial and one of China’s largest state-backed venture funds, according to a person familiar with the matter.
https://goo.gl/Tri8r8
Investors should take heed of China’s congress themes; Healthcare and the environment emerged as key areas of focus
James Kynge – FT
Xi Jinping, China’s leader, took the members of his new Politburo Standing Committee to Shanghai on Tuesday. They did not visit the stock market or other monuments to economic reform, but instead toured historical sites redolent of the founding principles of the Communist party.
https://goo.gl/yRm5Nx
Hong Kong
Why investors are pulling out US$4.8b from Hong Kong ETFs; Demand for Hong Kong ETFs has been lagging, no thanks to an unfavourable regulatory environment, limited ETF choice and low product understanding
Karen Yeung – South China Morning Post
Exchange-traded funds (ETFs), listed securities which track a basket of stocks and favoured by investors for their lower costs and high transparency of the type and weight of stocks owned, have seen an explosive growth in the global financial world.
https://goo.gl/fsGZ2F
Beijing-driven crackdown puts Hong Kong activists on back foot; Out of prison, Joshua Wong says democracy movement struggling to find way forward
Ben Bland in Hong Kong – FT
Looking drained and sporting a prison buzz cut, political activist Joshua Wong is trying to put a brave face on the tribulations facing Hong Kong’s democracy movement.
https://goo.gl/VeKmMP
Hong Kong Claims Fintech Leadership Following Fintech Week
JD Alois
Hong Kong Fintech Week ended on October 27th. According to organizers, the main story emerging from the week long event is the fact that Hong Kong is very much a Fintech leader in Asia. Frequently compared to Singapore – regularly viewed as the leading Fintech hub in Asia, Hong Kong is claiming is spot in innovative finance. While Hong Kong may have started slowly in its recognition of looming disruption in the financial services industry, the country is now picking up momentum as it seeks to become the leading Fintech hub for all of Asia.
https://goo.gl/7PTEwk
Indonesia
Indonesian feedlots in ‘diabolical’ financial strife and at risk of closing, says vet consultant
By Lydia Burton – ABC.net.au
An Indonesian-based veterinary consultant has described the situation for live cattle importers and feedlotters in that country as “diabolical”.
https://goo.gl/Qp3kU6
Indonesia’s Most Valuable Bank Prowls for Acquisition Targets
By Fathiya Dahrul and Tassia Sipahutar – Bloomberg
Bank Central Asia has about $300 million to buy mid-sized bank; Received ‘many offers,’ none yet suitable, Setiaatmadja says
PT Bank Central Asia is seeking to buy a mid-size lender as intensifying competition and a sluggish Indonesian economy prompt some owners to consider exiting the industry, according to the firm’s top executive.
https://goo.gl/fafU7H
Singapore
UK may need to replicate Singapore’s regulatory approach
Intelligent Insurer
If the London Market is to enjoy overseas growth post-Brexit, its regulator will need to adopt a new approach, Peter Allen, partner in the insurance division at accountancy and consultancy firm Moore Stephens, told SIRC Today.
https://goo.gl/f7rguc
New book tells 85-year history of OCBC Bank
By Tang See Kit
]When OCBC Bank vacated its old headquarters at China Building in 1970, Deputy Prime Minister Teo Chee Hean remembered it being “quite a sight”.
https://goo.gl/JidSLv
DBS to re-skill 1,500 bank staff in its own professional conversion programme; To fund this programme, DBS will receive partial funding from Workforce Singapore (WSG), with the balance of the re-skilling costs borne by the bank.
Lynette Khoo – Straits Times
In a move to help employees sharpen their competitiveness and deepen their skillset, DBS Bank will proactively re-skill 1,500 employees over the next 18 months under a scheme known as Professional Conversion Programme (DBS PCP).
https://goo.gl/YPQ14m
Vietnam
BITCOIN Vietnam Puts The Brakes On Cryptocurrency Use, Including Bitcoin
PYMNTS
The use of Bitcoin as a form of payment has been banned in Vietnam, according to Monday (Oct. 30) ZDNet reports. The country’s state bank ruled that all cryptocurrency, not just Bitcoin, was an invalid form of payment.
https://goo.gl/ycWZES
Thailand
Tata eyes steel hub role for Thailand
By KWANCHAI RUNGFAPAISARN – THE NATION
TATA STEEL aims to build up its Thai operations under plans to make the country a hub for its operations in the region.
https://goo.gl/3KL6Ji
Website chronicles foreign deaths in Thailand
News.com.au
THAILAND is a fascinating place. It is one of the top destinations for Australian holiday-makers, with its unique cultural experiences, tropical beaches and delicious food.
https://goo.gl/6G5sMB
Taiwan
Prosecutors seek 24-year jail term for property tycoon
Focus Taiwan
The Taipei District Prosecutors’ Office on Tuesday sought a sentence of 24 years in prison for Farglory Group founder Chao Teng-hsiung on charges that include bribery and breach of trust.
https://goo.gl/TCJLmz
South Korea
China rows back on South Korea economic blockade; Beijing’s relaxation of punitive measures marks diplomatic victory for Seoul
Bryan Harris in Seoul and Charles Clover and Sherry Fei Ju in Beijing – FT
China has signalled it will dismantle a year-old unofficial economic blockade against South Korean companies, marking a diplomatic victory for Seoul.
https://goo.gl/PYb3ih
Philippines
Philippines renews pledge of $1-B loan to IMF
By Lawrence Agcaoili
The Philippines has renewed its commitment to strengthen the global financial safety net with the extension of the $1-billion loan facility with the International Monetary Fund (IMF).
https://goo.gl/3M8dCG
Malaysia
Asia ripe for Islamic finance as fintech comes to the fore; IFSB head sees capacity building and international standards required
KAZUKI KAGAYA, Nikkei
The potential for growth of Islamic finance in the Asian market is much bigger than might be expected, said Zahid ur Rehman Khokher, acting secretary-general of the Islamic Financial Services Board, in a recent interview with the Nikkei Asian Review.
https://goo.gl/SeJQgb
Malaysia works to solidify position as Islamic finance hub; Central bank assistant governor sees potential in fintech to propel growth
CK TAN, Nikkei
Malaysia’s banking system, including Islamic finance, is open to the use of financial technology, said Marzunisham Omar, the country’s central bank assistant governor said in a recent interview with the Nikkei Asian Review.
https://goo.gl/XyQzqf
Malaysia Reopens 1MDB Case: A Return To Asia’s Biggest Corruption Scandal
Jonathan Webb – Forbes
The attorney-general of Malaysia has announced that investigations into the 1MDB scandal will reopen. It was thought that the police had concluded its investigation which caused significant business disruption across South-East Asia, but we may see more revelations going forward.
https://goo.gl/oxGjaV
India
Seven reasons why Chinese-made Hindu gods rule Indian markets
Farok J Contractor – Quartz
Gaily coloured resin figurines of Hindu gods are plentiful in India’s hundreds of thousands of bazaars. Most shopkeepers do not know where the figurines were manufactured or, if they do, will not tell. India increasingly imports mass-produced idols of Hindu deities from China—by the millions since 2000.
https://goo.gl/9XWqVP
Ebix Expands on Leadership Position in Financial Exchange Markets in India through the Acquisition of Leading Travel Exchange Via
By GlobeNewswire
Ebix, Inc. (NASDAQ:EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, e-governance and healthcare industries, today announced that one of its Singapore subsidiaries has entered into an agreement to acquire Via.com, an Omni-channel online travel and assisted e-commerce exchange. The acquisition of Via expands on Ebix’s distribution network to over 224,000 distribution outlets in the South East of Asia, besides offering significant cross selling opportunities for Ebix’s EbixCash Financial Exchange portfolio of products.
https://goo.gl/CYrVm1
Centrum Group to buy micro finance business of FirstRand Bank India
By Saikat Das, ET
Centrum Group has agreed to buy Indian microfinance business of South Africa’s First Rand Bank in what could be the latest in a series of large-scale expansions after ex-Standard Chartered banker Jaspal Bindra joined the firm as its chairman.
https://goo.gl/x6JYa2
India Jumps to 100th Spot in Ease of Doing Business Rankings
By Vrishti Beniwal – Bloomberg
Gain of 30 positions in World Bank report on back of reforms
Among top 10 improvers, India the biggest gainer in South Asia
Prime Minister Narendra Modi has made it easier to do business in India, according to the World Bank, which showed the country moving up 30 places from last year’s ranking.
https://goo.gl/XQ3yU7
Australia
Deloitte climate expert says large parts of Australia could become ‘uninsurable’
Alice Uribe – AFR
The models used by insurers to predict risks associated with catastrophes are not exacting, with climate change now presenting a range of potential reputational and financial risks for general insurance companies.
https://goo.gl/22krcz
Australian government to extend investor tax incentives to support fintech startups; The tax incentives introduced last year excluded companies that have finance activities as their predominant activities, making the legislation restrictive.
Tas Bindi – ZDNet
The Australian government has published draft legislation aimed at incentivising investors to support early-stage fintech startups with “high-growth potential”.
https://goo.gl/Zaq1x8
The post Asia Pacific Financial News from John Lothian – October 31, 2017 appeared first on John Lothian News (JLN).