Lead Stories
What’s Next for China’s Markets Now Xi Jinping’s Party Is Over
Bloomberg News
Angst about deleveraging plans fueled post-congress selloff; Trump visit, outlook for yuan regime in focus going forward
The games are over. Let the games begin. China watchers had long suspected that Beijing would be more tolerant of bigger market moves after the Communist Party’s once-in-five-years congress ended last week — but the ferocity of the selloff in bonds and stocks took analysts by surprise.
https://goo.gl/yv9gww
Trump will tell Asia that world ‘running out of time’ on North Korea: White House
Steve Holland – Reuters
President Donald Trump will tell leaders on a five-nation Asia tour that the world is “running out of time” on stopping North Korea’s nuclear crisis and that the United States is prepared to defend itself if needed, a top Trump aide said on Thursday.
https://goo.gl/uzRzoi
Goldman’s Blankfein Is Only Major Financial Firm CEO to Join Trump on China Trip
NY Times
Goldman Sachs Group Inc Chief Executive Lloyd Blankfein will visit China as part of a business delegation in November at the same time as U.S. President Donald Trump, a Goldman spokesman confirmed.
https://goo.gl/3vdRqF
Mukesh Ambani pips China’s Hui Ka Yan to become Asia’s richest man
BT Online
With a net worth of $93.3 billion, Amazon founder and CEO Jeff Bezos raced past Bill Gates to become world’s richest man. Microsoft co-founder Bill Gates ranked 2nd with his $89.5 billion fortune. Facebook founder Mark Zuckerbeg stood at 5th spot with a $75.8 billion fortune.
Exchange News
Shenzhen Stock Exchange Earnestly Studied And Implement The Spirit Of The 19th National Congress Of The Communist Party Of China
Mondovisione
The 19th Communist Party of China (CPC) National Congress was a significant conference convened on the critical phase of China’s securing a decisive victory in building a moderately prosperous society in all respects, and of Socialism with Chinese Characteristics crossing the threshold into a new era.
https://goo.gl/GFA3Ni
Japan Exchange Group released Trading Overview in October 2017.
JPX
Cash Equity Market – In October 2017, the daily average trading value for the TSE 1st Section (domestic common stocks) reached JPY 3.1077 trillion, a high in 2017.
Derivatives Market- In October 2017, total derivatives trading volume was 28,686,801 contracts, the second highest record for October; Total derivatives trading value was JPY 208 trillion.
https://goo.gl/JiNPAi
FinTech News
TransferWise Raises $280 Million to Fund Expansion in Asia
By Jeremy Kahn – Bloomberg
Old Mutual, IVP lead investment round in London fintech; Company now valued at $1.6 billion, source familiar said
TransferWise Ltd., one of Europe’s largest financial technology startups, has raised an additional $280 million to fund its continued expansion, including a big push into Asian markets.
https://goo.gl/YfT3gq
Regulatory News
ASIC updates work on fee transparency for super and managed investment schemes
ASIC
ASIC is committed to improving the transparency and comparability of fees and costs for managed investment and superannuation funds, through its work on Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (RG 97).
https://goo.gl/Vm5EWT
Japan
Japanese stocks, long shunned, attract billions of foreign dollars
Trevor Hunnicutt, Hideyuki Sano – Reuters
Japan is shaking off currency gains that typically punish its stocks, enticing foreign investors including Goldman Sachs Group Inc and BlackRock Inc, which are pumping billions of dollars into the country’s equities.
https://goo.gl/wbp6qm
Japanese Financial Regulator Issues Warning on ICOs Daniel Dob November 2, 2017 Finance, News japan ico
TheMerkle.com
While many people consider initial coin offerings to be high-risk investments, the rewards are often worth it for investors throughout the world. However, ICOs remain an unregulated market, and recently, Japan’s Financial Services Agency (FSA) warned of the risks posed by these crowdfunding campaigns.
https://goo.gl/Vw6pZ5
Japan: A Forward Thinking Bitcoin Nation
Ken Yagami – Forbes
By 2014, Bitcoin was just about ready to hit the mainstream in Japan. Mt. Gox was a Tokyo based bitcoin exchange which boasted 70% of the global turnover of Bitcoin trading. However, in February of 2014 Mt. Gox suddenly closed its website and shut down its exchange when it was discovered that it had been hacked. Approximately 850,000 bitcoins worth about $450 million at the time was missing and presumed to be stolen. The CEO Mark Karpeles was eventually arrested in Japan and charged with fraud and embezzlement, and the saga was widely broadcast throughout Japan. The true nature of the incident is still a mystery and due to the widely publicized saga, the word “Bitcoin” in Japan continued to have a strong association with fraud, theft, and ponzi schemes for many years to come.
https://goo.gl/Gva1nQ
David Rosenberg: Fifteen reasons why investors should love Japan; Things are starting to look up in the Land of the Rising Sun
David Rosenberg – Financial Post
Over the past few decades, Japan has made headlines for its moribund economy and lagging stock markets. But things are starting to look up in the Land of the Rising Sun, according to David Rosenberg. Here, the chief economist at Gluskin Sheff + Associates lays out fifteen reasons why investors should love Japan:
https://goo.gl/nnZt1t
Mainland China
America still holds the aces in its poker game with China; The US has advantages over its challenger that will outlive the present administration
Joseph Nye – FT
After the Chinese Communist party’s celebratory 19th congress, which ended last week, some observers proclaimed Xi Jinping a new emperor. Mr Xi, for his part, called China a “great and strong” power and touted his Belt and Road infrastructure initiative to promote Chinese economic and political power around the world.
https://goo.gl/Vq8ViQ
How China’s Economy Is Poised to Win the Future
By Ian Bremmer – Time Magazine
President Trump has plenty of work to do during his 10-day tour of Asia in November. In Japan and South Korea, he must reassure nervous allies that an “America first” foreign policy does not mean the U.S. has ceded regional dominance to China. In Vietnam and the Philippines, he has to communicate deep U.S. interest in balancing China’s influence in Southeast Asia.
https://goo.gl/1LZtPb
Foreigners Try a New Strategy in China’s Fragile Bond Market
Bloomberg News
Global funds’ holdings of NCDs jump six-fold in two months; Short-dated securities enjoy high yields, solid liquidity
China’s deleveraging campaign has foreign investors flocking to the nation’s short-term bank debt.
https://goo.gl/xTRMdA
An Army of Chinese Millennials Is Reshaping Global Travel; Chinese age 18 to 34 accounted for 60 percent of the country’s foreign travel last year and spent more than $150 billion, Bloomberg Intelligence estimates.
By Carol Matlack – Bloomberg
When Ronnie Hou finished her master’s degree last spring, her parents gave her a trip to Seattle—a city that has fascinated Hou since her teen years in the central Chinese province of Henan, when she got hooked on Grey’s Anatomy. “I love traveling!” says the 24-year-old, who’s planning a Christmas trip to New York City and after that, “Europe, Australia, Japan, Korea.”
https://goo.gl/9hWexu
Backlash Against Chinese Products Ramps Up in India
By Vrishti Beniwal – Bloomberg
Affiliates of Modi’s party pushing boycott of Chinese goods; India struggling to compete with China’s manufacturing might
In Mohit Gogia’s stationary and gift store in Noida, near India’s capital, the only decorative lights for sale ahead of last month’s festival of lights were Chinese made.
https://goo.gl/rYNVbJ
Hong Kong
Andy Lau’s Wall Street style TV series Trading Floor secret weapon of Fox+ in Hong Kong; The online streaming service is spending big on local TV series
Jane Li – South China Morning Post
Fox Networks Group Asia, the multimedia arm of American media giant 21st Century Fox, has launched its video streaming platform Fox+ in Hong Kong – the latest entrant in a market overcrowded with television content providers.
https://goo.gl/x1FwTc
Indonesia
Indonesia finance minister says economy can weather shocks from Fed hikes
By Ed Davies and Fransiska Nangoy – Reuters
Indonesia’s economy is now in a much better position to weather any shocks on global markets due to further increases in U.S. interest rates, Finance Minister Sri Mulyani Indrawati said in an interview on Thursday.
https://goo.gl/LU4Ghh
Singapore
Singapore seeks to muscle in on market for catastrophe bonds; City state prepared to pay upfront costs for issuers as it seeks to tap Asian demand
Oliver Ralph in London – FT
Singapore has fired the latest shots in the growing global battle for the catastrophe bond market, promising to pay the upfront costs of new issues.
https://goo.gl/P5sTu8
Private banks in Asia shifting the game towards advisory
JAMIE LEE – Business Times
THE private-banking segment is expected to edge away from a brokerage model towards advisory, amid moves by the Monetary Authority of Singapore (MAS) this week to grow the financial sector into a global force.
https://goo.gl/1CgiWY
Why Singapore should embrace blockchain technology soon
SBR
Broadridge APAC head David Becker discusses the potential of blockchain technology and the challenges that hinder its evolution.
https://goo.gl/mXRDmD
Wee Cho Yaw to retire from UOB board
Straits Times
United Overseas Bank veteran Wee Cho Yaw – one of the giants of Singapore’s financial service industry – is retiring after 60 years with the company.
https://goo.gl/j1vKzZ
UOB hires from DBS (again) for expanding team in Singapore
by Simon Mortlock – eFinancialCareers
UOB has made its second senior structured finance hire from DBS in just the last four months. Alvin Wong has joined as a director in structured finance within UOB’s Singapore-based global financial institutions group (GFIG).
https://goo.gl/dAjRhs
Monaco Cryptocurrency Debit Card Gets Visa’s Approval in Singapore
JP Buntinx – The Merkle
Any company issuing a cryptocurrency debit card will face an uphill battle these days. More specifically, there have been new restrictions imposed by both Visa and Mastercard when it comes to issuing such cards outside of the European Economic Area (EEA). In a surprising turn of events, Monaco – which recently held a cryptocurrency ICO – saw its card approved by Visa. It’s an interesting turn of events, although there are some caveats to take into account.
https://goo.gl/216jGr
Maybank Names Singapore CEO
Finews.asia
Malaysia’s Maybank announced a change of chief executive officer and other senior appointments in its Singapore operations.
https://goo.gl/rgTcnY
Vietnam
Vietnamese banks tap foreign execs to drive growth; Listed lender Vietcombank hires HSBC veteran to head retail operations
Nikkei
Vietnamese banks are recruiting more foreigners to key positions in a bid to expand their businesses in a market where incomes are rising and most people still lack bank accounts.
https://goo.gl/KMZUdx
South Korea
South Korea ranked fourth worldwide for business environment; The country matched its previous best score in the World Bank assessment “Doing Business 2018”
TheHankyoreh
South Korea rose to fourth place in a World Bank assessment on how good an environment countries offer for doing business. The ranking is a return to the all-time high it previously hit in 2015. Published on Oct. 31 by the World Bank, the “Doing Business 2018: Reforming to Create Jobs” report findings showed South Korea ranked fourth out of 190 economies evaluated, up one spot from fifth place in 2016. South Korea has risen every year in the rankings since coming in 23rd in 2008. It previously reached a historic high of fourth place in 2015, but slid back a spot the following year.
https://goo.gl/TCY1aM
Philippines
Finance officials seek help from Jack Ma
JEANDIE O. GALOLO – SunStar
ECONOMIC managers of the country will meet with Chinese business magnate Jack Ma by January in China to discuss how to accelerate the Philippines’ e-commerce landscape.
https://goo.gl/8vNptv
India
Hey, don’t label India as currency manipulator: Raghuram Rajan
Financial Express
US Treasury said that it was going to “closely monitor” the Reserve Bank of India’s activities as there was a “notable increase in the scale and persistence” of dollar purchases.
https://goo.gl/aNwDZP
For business, India’s at least gotten a bit easier
Financial Express
Given that the Indian economy has been reeling from one shock after another, a bit of good news would be welcome.
https://goo.gl/rnu1kg
The post Asia Pacific Financial News from John Lothian News – November 2, 2017 appeared first on John Lothian News (JLN).