Lead Stories
China Looks to the Dumb Money for Its Financial Industry; A slowing economy suggests the sector is under strain and needs help.
By Noah Smith – Bloomberg
China is opening its financial firms to more foreign ownership. The opportunity might seem tempting. But developed-world buyers should beware — it’s possible that it’s a trap.
https://goo.gl/tqTq6J
Xi’s China will only showcase illiberalism and dogma; No real deleveraging and 2018 will probably see more monetary easing to assuage markets
George Magnus – FT
The Chinese Communist party’s 19th Congress continues to shape the way we think about China, policymaking and the state of the country’s financial and capital markets.
https://goo.gl/fYY5rc
China Clampdown Signals ‘New Era’ for $15 Trillion in Funds
Bloomberg News
China announced new asset-management product rules on Friday; Once adopted, the regulations will end implicit guarantees
China’s latest plan to rein in its shadow banking system is winning early plaudits from analysts, despite concern that it could fuel short-term market turbulence.
https://goo.gl/NbMZAG
How China’s Acquisitive HNA Group Fell From Favor; CEO Adam Tan drove the global ascent of the conglomerate, which is now drawing the scrutiny of regulators and Wall Street as its debt-fueled expansion hits a wall
By Anjani Trivedi and Julie Steinberg – WSJ
In the summer of 2016, Adam Tan, chief executive of China’s HNA Group Co., told an adviser he thought the conglomerate was growing too quickly. After an acquisition tear that vaulted HNA into the top tier of global buyers, it needed to digest its new holdings, he said, according to a person familiar with the conversation.
https://goo.gl/6iwLv8
FINANCIAL INSTITUTIONS ARE INVESTING IN CENTRAL ASIA
Kazakh.tv
Central Asian region is becoming attractive to international financial institutions. The financial centers actively invest in major infrastructure projects and development banks. The main focus is the support of industries with high added value as well as programs to improve the energy efficiency of the economy and of other areas. According to experts, interest in Central Asia is due to the economic growth of the region’s countries and a stable political environment. Furthermore, the important point is the fact that the region’s population has reached 70 million people.
https://goo.gl/WVvVge
Exchange News
India’s global exchanges await the ‘GIFT’ of rupee futures trade
TheHinduBusinessLine.com
The international financial services centre (IFSC) at the Gujarat International Finance Tec-City (GIFT) is evolving well, with the various exchanges in the zone progressing fast. There are, however, many regulatory issues that still need to be ironed out to help this nascent venture grow to its potential. The most important clearance awaited is with respect to allowing the trading of rupee derivatives.
https://goo.gl/gVMEc7
BSE warns trading members, investors against unsolicited messages; An official had said that Sebi would look into the complaints of some individuals allegedly circulating key financial details listed companies on social media groups before they were made public
Business Standard
Leading exchange BSE has cautioned traders and investors against unsolicited messages being circulated by unregistered entities to induce investment and sale of shares.
https://goo.gl/ANFHhU
NSE SME platform to touch 100-mark tomorrow, to see 50 IPOs in 6 months; 99 companies are listed on the NSE’s Emerge platform with an aggregate market capitalisation of over Rs 7,600 crore
Business Standard
The number of listed firms on NSE’s small and medium-sized enterprises (SME) platform would touch 100-mark on Monday and further traction is expected in the next six months with 50 more initial public offerings on this segment, the top official said.
https://goo.gl/TZFnoZ
Regulatory News
ASIC accepts enforceable undertakings from ANZ and NAB to address conduct relating to BBSW
ASIC
Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) have today entered into enforceable undertakings (EUs) with ASIC in relation to each bank’s bank bill trading business and their participation in the setting of the Bank Bill Swap Rate (BBSW), a key Australian benchmark and reference interest rate.
https://goo.gl/ugxFCK
Investing News
Indian Bonds Jump Most in Year After RBI Cancels OMO Debt Sale
By Subhadip Sircar – Bloomberg
RBI cites evolving liquidity at banks as reason to scrap sale; ‘Markets have witnessed a smart bounceback’: Trust Capital
Sovereign bonds rose the most in a year in India after the central bank scrapped a debt sale due later this week that was designed to reduce banking liquidity.
https://goo.gl/XnqJF1
Japan
Japan’s best export performance since 2008 crisis rolls on
Financial Express
Japan’s exports grew by double digits for a fourth straight month in October, continuing the best year-to-date performance since the global financial crisis.
https://goo.gl/CLhv8y
Poverty among Japan’s elderly spurs grey crime wave; Reoffending rates among ‘ultra-aged’ society exceed the younger population
Leo Lewis in Tokyo – FT
In its ascent to becoming the world’s first “ultra-aged” society, Japan has arrived at an inflection point, where criminals past the age of 65 are more likely to reoffend within two years of release from prison than their younger counterparts.
https://goo.gl/gNihRD
Japan’s small-caps invite scrutiny as liquidity taps turn off; Below-the-radar stocks appear undervalued against a backdrop of less stimulus
Henny Sender – FT
Ihara Science is neither a well-known nor a widely followed stock but the Tokyo-based manufacturer stands out for stockpickers who advocate hunting for small companies that have pricing power.
https://goo.gl/Kvyoyn
Volatility returns to Tokyo markets
BY MIN JEONG LEE AND KEIKO UJIKANE – Japan Times
Bryan Goh says there’s no clear reason why Japanese stocks suddenly started falling after a turbocharged rally sent them to their highest in a quarter century.
https://goo.gl/hfrQVB
Mainland China
Chinese shadow banking has slowed — but that’s not as good as it seems; Growth in China’s shadow banking sector is falling; But the borrowing is just moving around
Huileng Tan – CNBC
China is on a drive to reduce its reliance on debt, a habit that some experts warn could lead to a global financial crisis.
https://goo.gl/XrS2wq
China’s Shadow Bank Clampdown Hits Stock Market
Bloomberg News
Shanghai Composite recovers after decline to two-month low; Rebound on bargain-hunting, state support speculation: analyst
Chinese stocks rallied in late trade as markets took a closer look at the nation’s new plans to rein in shadow banks and some traders speculated that state funds would act to stem excessive losses.
https://goo.gl/Qc9bjG
Why does China need to deepen its financial reform now?
Ligang Song, ANU – East Asia Forum
Financial sector reform in China has lagged behind reform in other areas. There has been some progress in opening the financial sector, but it has been hampered by various constraints.
https://goo.gl/mD7Qtd
Fall expo to showcase Sichuan’s financial potential in West China
Asia Times
Event to feature the province’s banking, insurance, securities funds, foreign finance, science and technology finance and wealth management sectors
https://goo.gl/TVb57r
China War Risk Syndicate launched
Seatrade Maritime News
Chinese and Asian shipowners now have added support with the launch of a new marine insurance facility aimed at protecting them from the risks of war and related perils such as piracy.
https://goo.gl/utNqcv
Rosneft deal boosts Russia-China relationship; State group to supply CEFC with 61m tonnes of oil over next five years
Henry Foy in Moscow – FT
Russia’s state-run oil group Rosneft has agreed to supply its new partner CEFC China Energy with almost 61m tonnes of oil over the next five years, strengthening the most high-profile corporate link in the burgeoning relationship between Moscow and Beijing.
https://goo.gl/HLdUJM
China’s Xiaomi focuses on India with $1bn investment; Telecoms group among world’s top smartphone makers thanks to success outside home market
Yuan Yang in Beijing – FT
Chinese telecoms group Xiaomi will prioritise India over its home market and invest $1bn in the country’s start-ups as it looks to accelerate growth outside of its highly competitive home market.
https://goo.gl/ja1mYs
U.S. Rebuffs China’s Charm Offensive, Edging Closer to Trade War; U.S. looks at sanctions with the goal of fundamentally challenging Chinese trade practices
By Lingling Wei, Jacob M. Schlesinger, Jeremy Page and Michael C. Bender – WSJ
A month before President Donald Trump’s visit to Beijing, Chinese officials presented an offer they thought Washington couldn’t refuse.
https://goo.gl/s7xgf9
Hong Kong
Hong Kong keeps North Korea ties despite pressure; FT investigation finds companies hit by US sanctions still operate in Chinese territory
Don Weinland in Hong Kong – FT
Businesses targeted with US sanctions over their ties to North Korea are continuing to operate in Hong Kong despite growing pressure for the Chinese territory to curb trade with the Kim Jong Un regime.
https://goo.gl/fU8Gyy
HKMA chief urges Hong Kong companies to improve corporate governance
Karen Yeung – South China Morning Post
Hong Kong financial companies have made progress in safeguarding against risky behaviour, but further improvements are needed, said HKMA deputy chief executive Arthur Yuen.
https://goo.gl/5ejbiK
Mom and Pop Pile Into Hong Kong IPOs in $163 Billion Bonanza
By Crystal Tse – Bloomberg
City experiences biggest retail investor frenzy since 2009; China Literature has best debut of any major tech IPO globally
Mom-and-pop investors haven’t been this crazy for Hong Kong initial public offerings since 2009.
https://goo.gl/mjj9VE
Indonesia
KB Financial eyes Indonesia, Vietnam
The Investor
[THE INVESTOR] The chairman of KB Financial Group said on Nov. 20 that he is considering making inroads into Indonesia and Vietnam as part of efforts to secure future growth.
https://goo.gl/EUbF6Q
Singapore
Singapore’s fintech dive now delves for proof beyond concept
JAMIE LEE – Business Times
FINTECH (financial technology) is starting to be plugged into Singapore for real economic value, as the city-state seizes technology such as blockchain and goes international with its fintech approach.
https://goo.gl/9oc8zY
Singapore PM Says Economy Needs Restructuring
Financial Tribune
Singapore’s economic growth could exceed 3% in 2017, higher than previous forecasts of 2 to 3%. Prime Minister Lee Hsien Loong said this on Sunday at the People’s Action Party’s convention held at Big Box in Jurong.
https://goo.gl/f13KgF
Singapore Tax Bump, Hong Kong Nectar
By Andy Mukherjee – Bloomberg
Asia’s two rival financial centers are starting to look very different, and the gap is going to widen.
https://goo.gl/8J9Qm9
GST tax hike in S’pore ‘likely’ but not in near term, experts say
By KENNETH CHENG – Today Online
Raising the Goods and Services Tax (GST) is the likeliest means through which Singapore could bump up tax revenues, though there is no pressing need to undertake such a “politically challenging” move anytime soon, economists and tax experts said on Monday (Nov 20).
https://goo.gl/FVGBhg
Vietnam
Rising global coal prices a threat to budget; As a coal importer, Vietnam will pay substantially more for energy source in coming years, according to recent analysis.
Vietnamnet.vn
Vietnam may have to spend an additional $1.27 billion each year on the fuel to 2021, given the global price of coal has doubled since the beginning of 2016, new analysis reveals.
https://goo.gl/RMH7Cj
VN firms urged to trade with HK
Vietnamnews.vn
As one of the leading trade and financial centres of the world, Hong Kong would be a gateway for Vietnamese enterprises to enter the Chinese mainland market and other regional and global markets, the deputy executive director of the Hong Kong Trade Development Council (HKTDC) said.
https://goo.gl/qgbuak
Will Jack Ma and Alipay make things happen in Vietnam?
VietNamNet Bridge
Jack Ma, the Chinese self-made billionaire, visited Vietnam to advertise Alipay and non-cash payment methods.
https://goo.gl/FsmLj4
Thailand
Thailand Sees Strong Growth Next Year as GDP Beats Forecasts
By Suttinee Yuvejwattana – Bloomberg
Economy seen expanding 3.6 percent to 4.6 percent next year; Central banks will need to guard against inflation risks
Thailand’s economy grew faster than economists estimated last quarter and is on track for a strong year in 2018, underpinned by a pick-up in exports and booming tourism.
https://goo.gl/rzdEtC
Taiwan
Economic sentiment hits highest level in more than 2 years
Focus Taiwan
Positive sentiment about the local economy reached its highest point in more than two years after a recent slew of economic data pointed to improved performance, a November survey released by Cathay Financial Holding Co. (國泰金) showed Monday.
https://goo.gl/4JbgMa
South Korea
Trump Says U.S. Is Labeling North Korea a Sponsor of Terror
Justin Sink – Bloomberg
U.S. President Donald Trump said he is designating North Korea a state sponsor of terrorism, subjecting the regime to additional sanctions and reinforcing its status as an international pariah.
https://goo.gl/ESEz6U
South Korean Banks Reject iPhone X Face ID Over Security Concerns
BY CORAZON VICTORINO – IbTimes
Looks like iPhone X users in South Korea won’t be able to use the smartphone’s Face ID technology when doing transactions in local banks. Apparently, Korean banks have rejected the idea of providing support for the 10th anniversary iPhone’s advanced biometric system. The banks’ decision reportedly comes after Face ID security concerns were reported.
https://goo.gl/xuBdUm
Philippines
Duterte Invites China to Enter Philippine Mobile-Phone Market
By Andreo Calonzo – Bloomberg
Philippine president says offer made in talks with Premier Li; No specific Chinese company selected yet, spokesman says
Philippine President Rodrigo Duterte has invited Chinese companies to take a role in the country’s wireless communications industry to add a third carrier to compete with PLDT Inc. and Globe Telecom Inc.
https://goo.gl/cTJyAg
Malaysia
No need to table 1MDB’s financial statements, Putrajaya tells Parliament
TheMalaymailOnline.com
The financial statements of 1Malaysia Development Bhd (1MDB) does not need to be tabled in the Dewan Rakyat, Prime Minister and Finance Minister Datuk Seri Najib Razak said today in a written reply.
https://goo.gl/W7mYCd
India
The Modi magic behind India’s unstoppable rally; Optimism fuelled by view PM still committed to reforms and popular enough to see them through
Kiran Stacey in New Delhi – FT
It was difficult to tell who was more delighted by Moody’s decision to upgrade India’s sovereign rating on Friday: the government in New Delhi or investors.
https://goo.gl/eQhWYA
Explained: Why your eggs are suddenly so costly in India
Financial Express
Past six months, farm-gate prices of eggs in Pune and adjacent areas have increased from Rs 375 to Rs 585 per 100 pieces, even as the rates for broiler birds have crashed from Rs 90 to under Rs 60 per kg.
https://goo.gl/q3uKmM
Australia
Conspiracy theories drive bank inquiry
The Australian Financial Review
Just as it looked like Australia had reached peak political madness, the Turnbull government delayed the House of Representatives’ scheduled sitting next week. Ostensibly this was to give the Senate time to debate the gay marriage bill before it is sent to the lower house. In reality, it is to help give the government one less week to survive a vote legislating for a commission of inquiry into the banks. Some will argue that such a vote could amount to a vote of no confidence in the government and, according to convention, possibly precipitate an election.
https://goo.gl/cgr4v9
APRA financial crisis powers attacked by fringe party
James Eyers – AFR
A Senate committee will examine concerns raised by fringe political party the Citizens Electoral Council of Australia that a bill expanding the Australian Prudential Regulation Authority’s financial crisis powers may allow it to commandeer customer deposits.
https://goo.gl/8Ax56D
The post Asia Pacific Financial News from John Lothian News – November 20, 2017 appeared first on John Lothian News (JLN).