Lead Stories
CQG Announces Strategic Leadership Changes to Support CQG China Launch; Rod Giffen Named President, CQG APAC; Ryan Moroney Appointed President, CQG Europe and the Americas
CQG
CQG has had a focused effort to add China to its global network of data and execution. With the imminent launch of this initiative, the firm announced today that Rod Giffen, President, CQG, has relocated to China and will serve in the newly created position of President, CQG APAC. Ryan Moroney will return to CQG to assume the new role of President, CQG Europe and the Americas.
https://goo.gl/5S9bfV
Mainland China’s Investors Favor HSBC Over Tencent; Southbound investors hold about HK$808 billion in Hong Kong stocks
By Benjamin Robertson – Bloomberg
HSBC Holdings Plc is the favorite company of investors who use the stock connects in Shanghai and Shenzhen to trade in Hong Kong. About HK$76 billion ($9.7 billion) of the bank’s shares are held via the southbound connects, according to data from Hong Kong Exchanges & Clearing Ltd. New China Life Insurance Co. had the highest proportion of connect-using owners, with 32 percent of the company held via the links. In total, southbound traders owned about HK$808 billion of stock in the former British colony as of Oct. 31.
https://goo.gl/ZxHwuA
China banking on home-grown system to keep financial crises at bay; Macro prudential assessment system created after the 2008 global financial crisis, which conventional monetary policy frameworks failed to prevent
Frank Tang – South China Morning Post
The People’s Bank of China is pinning its hopes of fending off a financial crisis on a home-grown macro risk assessment system, according to the youngest of China’s five central bank deputy governors.
https://goo.gl/3RHMAs
How Much Is the Great Barrier Reef Worth? Economists Just Figured it Out; The Reef should be classed as too big to fail
By Michael Heath and Chris Bourke – Bloomberg
As mankind puts the world’s largest living structure at risk, economists have come up with a new solution: put a price tag on it.
https://goo.gl/28Tjed
China’s ‘Hard Bones’ Reform-Drive Seen Leaving Expansion Intact
Bloomberg News
Policy makers signal tempo of reform will accelerate next year; Goldman Sachs, Morgan Stanley see positive momentum for change
China’s reform drive is winning plaudits from economists who are increasingly confident that excesses in the world’s second-largest economy can be tackled without derailing growth.
https://goo.gl/X5nKwG
Japan Rail Operator Says Sorry, as Train Leaves 20 Seconds Early
By Eric Lam – Bloomberg
They put a high premium on punctuality in Japan. A politician once had to drop out of an election after he delayed a bullet train by pushing staff to halt it for a campaign stop. This time, though, it’s a rail company that’s apologizing after the 9:44 a.m. train on Tokyo’s Tsukuba Express line left earlier than scheduled on Tuesday — 20 seconds too early.
https://goo.gl/ZD94Uf
Military Drills Help China’s Best Bank Toughen Up Its Staff; The boot camp ethos would be laughable if Bank of Taizhou weren’t the country’s most profitable lender.
Angus Whitley, Alfred Liu and Jun Luo – Bloomberg
At Bank of Taizhou Co., trainees are pushed to count money with lightning speed, toughened up by ex-instructors from the People’s Liberation Army and mobilized to go after delinquent borrowers with the subtlety of an infantry battalion.
https://goo.gl/YL2EiP
Exchange News
HKEX Announces Results of Annual Review of Trading-fee Tiers for Stock Options
HKEX
Annual reviews conducted for possible reclassification within 3 trading-fee tiers; 14 Stock Option classes to be reclassified from 2 January 2018
Hong Kong Exchanges and Clearing Limited (HKEX) will change the trading-fee tier of several of its Stock Option classes from 2 January 2018 based on its latest annual review of the classifications.
https://goo.gl/3KauJL
Regulatory News
Caloundra man charged for insider trading
ASIC
Mr Jin Xi Li, 54, of Caloundra, Queensland, appeared in the Maroochydore Magistrates Court today charged with 88 insider trading related offences.
https://goo.gl/R8ABVf
Bell Potter Securities Limited pays $358,000 in infringement notice penalty
ASiC
Bell Potter Securities Limited (‘Bell Potter’) has paid a penalty of $358,000 to comply with an infringement notice given to it by the Markets Disciplinary Panel (‘the MDP’).
https://goo.gl/wuBgmi
ASIC releases guidance for the Financial Services and Credit Panel
ASIC
ASIC has today released regulatory guidance on the newly established Financial Services and Credit Panel (FSCP).
https://goo.gl/uBmn63
New study highlights major country differences in the regulation of bitcoin, blockchain and initial coin offerings; A new study has highlighted major differences in the way bitcoin and initial coin offerings (ICOs) are regulated across the world.
Out-Law.com
The study, carried out by Pinsent Masons, the law firm behind Out-Law.com, found that financial regulators differ over how best to address risks in the use of digital currencies, particularly bitcoin, and ICO investments.
https://goo.gl/ed1aYa
Investing News
Chinese developers dive back into offshore debt issuance
Gabriel Wildau – FT
Bank of China’s Paris branch priced a triple-currency “climate bond” worth $1.5bn on Thursday, the bank’s third green bond issued to international markets over the last 18 months.
https://goo.gl/ieeGfr
This Australian Pension Fund Has Beaten the Rest This Decade
By Ruth Liew and Matthew Burgess – Bloomberg
A not-for-profit retirement fund for Australian retail workers is the nation’s top-performing pension fund since the global financial crisis.
https://goo.gl/e6Di7n
Japan
Tokyo governor Yuriko Koike promotes city’s global financial hub vision on Singapore visit
Seow Bei Yi – Straits Times
A vision for sustainability and establishing Tokyo as an international financial hub took centre stage in Tokyo governor Yuriko Koike’s three-day visit to Singapore, which ends on Friday (Nov 17).
https://goo.gl/eSjpNV
Japan’s Expanding Economy Hides Wealth Disparity; Many households have few financial assets or savings
By James Mayger – Bloomberg
Not everybody is celebrating Japan’s seven-straight quarters of economic expansion.
https://goo.gl/Cd9WBt
Japan considers tightening leverage rule for Mrs Watanabe
Reuters Staff
Japan’s Financial Services Agency is considering reducing the maximum leverage allowed for margin FX trading to 10 times from the current 25 times, sources familiar with the matter said on Thursday.
https://goo.gl/YRWWLd
Banking body head warns about impact of Bank of Japan’s negative rate policy
Taiga Uranaka – Reuters
The head of Japan’s banking industry said on Thursday the Bank of Japan’s massive monetary easing could cause disruption for the country’s financial system if it remains in place too long.
https://goo.gl/qqF7k9
Japan’s cross-shareholding still a tough habit to break; Corporate governance goals challenged by survival of equity blood-pacts
Leo Lewis – FT
“There is definitely a temptation,” says one veteran investor let loose on the subject of Japan and corporate governance and stewardship reform, “to celebrate these happy marriages by banging one’s head against a wall”.
https://goo.gl/LLq9hW
Bitcoin is a bubble, no plans to short-sell: Japan Post Bank CIO
Tomo Uetake, Hideyuki Sano – Reuters
Bitcoin BTC=BTSP is in a bubble and its fair value should be around $100, or about 99 percent below the current level, Katsunori Sago, chief investment officer of Japan Post Bank (7182.T) said on Thursday.
https://goo.gl/GMqm4t
Mainland China
China central bank adviser expects less forceful deleveraging in 2018
Kevin Yao – Reuters
A Chinese central bank adviser said on Thursday he expects the government’s financial deleveraging to be less forceful next year, a campaign that has weakened credit expansion at a time when the world’s second-biggest economy is showing signs of slowing.
https://goo.gl/mSmcif
Are China’s US$3 trillion reserves an economic curse?; Central bank should stop drip feeding cash into the economy, fuelling asset price bubbles and wayward investment, government adviser says
Frank Tang – South China Morning Post
China’s US$3 trillion foreign exchange reserves managed by the central bank have been a major source of the country’s financial problems, according to a government economic adviser.
https://goo.gl/NHoyzp
China central bank adviser: Expect China financial deleveraging to be less forceful in 2018
Reuters Staff
A Chinese central bank advisor said on Thursday that he expects China’s financial deleveraging to be less forceful next year.
https://goo.gl/9eYdsm
China’s laid-off workers pose welfare challenge; Largest intervention in nearly a year sends bonds down from 3yr high
Don Weinland in Hong Kong and Yuan Yang in Beijing – FT
China’s central bank injected $47bn into its financial system on Thursday, its largest intervention in nearly a year, in an effort to calm investor fears that Beijing’s crackdown on debt-fuelled growth would put a break on the country’s rapid expansion.
https://goo.gl/Xg5UXL
Amid Push To Open China’s Financial Markets, Some Banks May Hesitate
PYMNTS
Will China’s invitation get the party started? Put a different way: If you open a country’s financial markets, will the (foreign) banks bring the capital?
https://goo.gl/9uEX6t
Volkswagen commits €10bn to build electric cars in China; Group works with joint venture partner to meet Beijing’s new-energy vehicle quotas
Emily Feng and Tom Mitchell in Beijing 7 comments
Volkswagen is investing €10bn to develop new-energy vehicles (NEVs) in China by 2025. The European carmaker will launch 40 locally produced vehicles in China, Jochem Heizmann, VW’s China head told reporters at the Guangzhou Auto Show on Thursday. Production of electric vehicles will begin during the first half of next year with VW’s new joint venture partner Anhui Jianghuai Automobile Group (JAC Motors).
https://goo.gl/P4VQr4
Few banks seen queuing for China’s red carpet invite
Sumeet Chatterjee – Reuters
China stunned the finance world last week when it unveiled plans to allow foreign control of its financial institutions. Few bankers thought their long-held dream of better access to the world’s largest banking market was within reach.
https://goo.gl/H4zbyX
Hong Kong
FS jobs returning to Hong Kong
By Fintech Innovation
Specialist recruiter Robert Half revealed the findings of a new research that suggests Hong Kong’s financial services companies are increasingly bringing their offshored operations back to the city as companies are being affected by rising costs and lackluster service in offshore regions.
https://goo.gl/Bvs2XL
20 banks likely to join frenemy trade pact between Hong Kong and Singapore; Blockchain-based trade network targeted for 2019 could set new global standards for the trillion-dollar industry
JAMIE LEE – Business Times
SOME 20 global banks are expected to join the landmark partnership between Singapore and Hong Kong to build a blockchain-powered trade network – the first in the world and one that could cement the two trade hubs’ position as global players – said two top central bankers from Singapore and Hong Kong.
https://goo.gl/4mNqMH
Indonesia
In a largely-unbanked Indonesia, Amartha uplifts women micro-entrepreneurs
Dola Samanta – Yourstory.com
Twenty-six people, four nationalities, 10 days. Travelling across Southeast Asia as a Startup AsiaBerlin Roadshow delegate to explore startup ecosystems was an experience unto itself.
https://goo.gl/hQDvzJ
Mauritius Lawsuit Accuses Top Indonesian Officials of Laundering Billions
John Berthelsen – Asia Sentinel
Billions of US dollars belonging to Indonesian taxpayers have allegedly been spirited out of Indonesia and into bank accounts in Singapore, Lebanon, Russia, Cyprus, the UK and Bermuda by some of the most powerful financial figures in Jakarta with the help of an international cabal of money launderers, according to a lawsuit filed in the Supreme Court of Mauritius on Sept. 29
https://goo.gl/bVuBLe
Philanthropy for the aged; The region’s ageing population and eldercare issues demand more attention from philanthropists.
FRANCIS KAN – Business Times
AGEING has not traditionally been a popular cause for philanthropists in Southeast Asia. However, the issue is becoming more difficult to ignore, particularly in Singapore, Malaysia, and Indonesia, which will face an increasingly ageing population in the next few decades.
https://goo.gl/PHtjfM
Singapore
Singapore Government, financial sector and local universities sign MOI for TeSA Fintech Collective
DEAN KOH – OpenGovAsia.com
“We are very encouraged by the support from all six local universities and the industry associations to ensure that we have the right talent to accelerate the growth of the FinTech sector a key part of Singapore’s digital economy.”
https://goo.gl/3RQZRW
Singapore gets lion share as fintech funding surges in Asean
SIOW LI SEN – Business Times
FUNDING for the financial technology sector in Asean is surging, fuelled by the potential of its young and underbanked population.
https://goo.gl/gJpgzK
India, Singapore discuss ways to strengthen trade ties
Financial Express
Finance Minister Arun Jaitley today called on Prime Minister Lee Hsien Loong and discussed ways to strengthen economic ties between the two countries, an official release said. Both the leaders recalled the shared history of the countries, rooted in strong commercial, culture and people- to-people links.
https://goo.gl/At5qS2
Vietnam
Nikkei forum strikes note of cautious optimism
VietnamNews
Viet Nam’s exports are growing, but its industries are not proceeding at the same pace, an expert noted at the Nikkei Asian Review forum held in Ha Noi on Wednesday.
https://goo.gl/mkRWjN
Thailand
Thai investor secures export financing for geothermal project in Japan
Alexander Richter
Thailand-based Thai Luxe Enterprises has secured financing of $18m from Thailand’s Export-Import Bank for its eight small-scale geothermal projects in Beppu, Oita Prefecture in Kyushu/ Japan.
https://goo.gl/qmtH4n
Baht appreciates to 30-month high BoT chief tells forum stability is paramount 17
PAWEE SIRIMAI – Bangkok Post
The baht rose to 32.95 versus the greenback Thursday, hitting a 30-month high, with Bank of Thailand governor Veerathai Santiprabhob saying the firmer baht is in line with regional peers, driven by the…
https://goo.gl/cQMf6S
Thailand May Be Joining Southeast Asia Growth Boom Despite Baht
By Suttinee Yuvejwattana – Bloomberg
Economists see 3.8% third-quarter GDP growth, best since 2013; Rising exports and tourism weathered surge in the currency
An economic boom that’s reverberated across Southeast Asia has finally crossed over to Thailand.
https://goo.gl/FrG7Yn
South Korea
Korean Giants Are Under the Microscope Again, Now for Their Giving; South Korea is about to start auditing the charitable arms of Samsung, Hyundai, and the nation’s other powerful conglomerates. Their nightmare: Kim Sang-jo, the “chaebol sniper.”
By Sohee Kim , Yoojung Lee , and Bruce Einhorn – Bloomberg
A tumultuous year for Samsung Group and other conglomerates threatens to get worse as South Korea’s competition authority, the Korea Fair Trade Commission, probes whether their founding families use the cloak of charity to maintain power without having to pay billions of dollars in taxes.
https://goo.gl/W26SDX
Philippines
Comprehensive Financial Protection In The Philippines: Building a resilient future
World Bank
The Philippines is located in the Pacific Ring of Fire, and about 74% of its population is vulnerable to natural disasters, including typhoons and earthquakes. In 2013, Typhoon Haiyan, the deadliest Philippine typhoon on record and the strongest in terms of wind speed, killed 6,340 people. Disasters like Haiyan have serious short- and long-term economic and fiscal impacts , with average annual asset losses that can be upwards of $3.5 billion. Over the past 20 years, economic losses to the agriculture and infrastructure sectors reached $500 million, equivalent to 0.5% of the country’s GDP.
https://goo.gl/vALqQb
Philippines is 12th country most affected by terrorism
By Audrey Morallo – Philstar
The Philippines ranked 12th globally in terms of terrorism’s impact due to an increase in the number of fatalities and terrorist activity, according to a global terrorism index.
https://goo.gl/32dro2
Singapore and Philippines ink fintech agreement
Finextra
Monetary Authority of SingaporeThe Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) today signed a FinTech Co-operation Agreement (CA) to promote innovation in financial services in their respective markets.
https://goo.gl/3PoiCL
UnionBank readies $1 B term notes
Lawrence Agcaoili -Philippine Star
Union Bank of the Philippines has completed the establishment of a $1 billion medium term note program to beef up its working capital and at the same time manage its liabilities.
https://goo.gl/WcVqbk
Malaysia
South East Asia’s Largest Bank Calls Bitcoin A Financial Scam
MalaysianDigest.com
Bitcoin has been enjoying an upward trend with prices surging close to $8,000 per bitcoin but it is still not enough to convince banks to adopt the cryptocurrency.
https://goo.gl/93LRYR
Former Malaysian PM: Current government ‘must go’
TED ANTHONY, ASSOCIATED PRESS
The man who led Malaysia through the final two decades of the 20th century and has waded back into its politics in recent months said Thursday the country’s current government is deeply problematic and “must go.”
https://goo.gl/E6Efwx
India
India woos Chinese tourists with promotional events
Financial Express
India today organised a seminar in China to promote its tourist destinations including 32 world heritage sites in a bid to attract travellers from the world’s top tourism source market.
https://goo.gl/q5UxGX
India Removes Restrictions on Pulses Exports on Bumper Harvests
By Pratik Parija and Bibhudatta Pradhan – Bloomberg
Pulses output climbed to record 22.95 million tons in 2016-17; Unrestricted exports to boost earnings of farmers, Dongre says
India scrapped curbs on exports of pulses to help farmers in the world’s top producer to access overseas markets and get better prices amid record harvests.
https://goo.gl/V8E8NL
Australia
Australia’s Santos shares soar after spurns $7.2 billion takeover approach
Sonali Paul – Reuters
Australian gas producer Santos Ltd said on Thursday it rejected a A$9.5 billion ($7.2 billion) takeover approach in August, sending its shares up 13 percent on speculation another offer was likely to emerge.
https://goo.gl/hkQZp4
When total shareholder return is no longer enough
Jennifer Hewett – AFR
Simon Longstaff, executive director of The Ethics Centre – which helps advise corporate Australia – jokes he feels he’s been trying to sell umbrellas in a drought for nearly 30 years.
https://goo.gl/BqctqF
Well poised for digital economy, although hurdles remain
by Mark Eggleton – AFR
Australian business is well placed to prosper in a globalised digital economy but we still have a few hurdles to overcome. Interestingly, the changing nature of work in the new economy is also changing the way we perceive workplace culture, suggested several speakers at the recent Businesses of Tomorrow roundtable co-hosted by The Australian Financial Review and Westpac.
https://goo.gl/H44soG
The post Asia Pacific Financial News from John Lothian News – November 16, 2017 appeared first on John Lothian News (JLN).