|
03 - 10 June
2014 | Issue 207
As India awaits the Budget,
Bloomberg TV India tells you what are the FIIs expecting. Bloomberg TV
India discusses the same with Mark Austen, CEO, ASIFMA. (BTVin)
Promoting Convergence and
Investments in EU-Asian Financial Markets, co-organised by ASIFMA &
CEPS.
AFME issues a new report on
how to revive the securitisation market
CHINA
China sets
economic reform priorities for 2014
China's top economic planner on Tuesday released economic priorities for
2014 in a plan that has been approved by the State Council, the country's
cabinet. The National Development and Reform Commission said authorities
will cut red tape and slash items that need administrative approvals.
(Xinhua)
China's central bank unveiled
details of plans to let some banks lend more of their deposits, a move aimed
at bolstering slowing economic growth.The People's Bank of China said
Monday that it was making a "targeted cut" in the portion of
deposits that banks need to keep on reserve. It trimmed the rate by half a
percentage point for banks that lend to the rural sector and smaller
companies. (WSJ)
China Regulator
Pledges to Expand Credit as Economy Slows
China's banking regulator vowed to expand loans and cap borrowing costs,
seeking to boost the supply of funds to the real economy as growth slows
amid a clampdown on shadow financing. Lending to small businesses, major
infrastructure projects and first-home buyers will be a priority, the China
Banking Regulatory Commission said in a statement today. (Bloomberg)
China To Relax
Loan/Deposit Ratio To Help Agriculture, SMEs
The Chinese government is planning to loosen the bank loan/deposit ratio in
order to funnel more credit to areas such as agriculture and small
business, the China Banking Regulatory Commission said Friday. CBRC
Vice-Chairman Wang Zhaoxing told reporters at a briefing here the current
75% ratio is legally binding, but said the government is looking into ways
to relax the loan and deposit categories to make it easier for banks to
lend to credit-starved parts of the economy. (MNI News)
The China Securities
Regulatory Commission (CSRC) approved 10 initial public offering (IPO)
applications on Monday, marking the official restart of IPOs since
mid-February. Five applicants will be listed on the Shanghai Stock Exchange
and the rest on the Shenzhen Stock Exchange, the CSRC said in a Weibo posting.
But it did not provide their names. (Xinhua)
The securities regulator has
tightened rules for initial public offerings again, to the dismay of an
investment banker who wants the market to decide how shares are priced. The
China Securities Regulatory Commission (CSRC) has told IPO candidate
companies to promise not to raise more funds than their prospectuses aimed
for and to cap their offering price-to-earnings ratio at their industry's
average level, sources close to the regulator said. (Caixin)
IMF's Lipton:
China Faces Increased Credit Risk; Should Cut GDP Target
The Chinese economy is facing increasing risks from its reliance on
credit-fuelled investment, a senior International Monetary Fund official
warned Thursday, recommending that the government cut next year's growth
target to just 7%. First Managing Director David Lipton also told reporters
at a briefing here that the fund believes the yuan's real exchange rate is
still "moderately undervalued," an assessment that remains
unchanged from 2013 despite the currency's recent weakness against the
dollar. (MNI News)
SINGAPORE
This is a brief which aims to
provide a quick pictorial summary of recent economic developments in the
Singapore economy.
The Monetary Authority of
Singapore (MAS) has published a consultation paper on proposed amendments
to the Monetary Authority of Singapore Act (MAS Act) and Trust Companies
Act (TCA). The proposed amendments are intended to strengthen the
regulatory framework for combating money laundering and terrorism financing
(AML/CFT). Comments on the consultation paper are due by 7 July 2014.
Speech by Mr Lim Hng Kiang,
Minister For Trade & Industry, at the World Bank-Singapore
Infrastructure Finance Summit at Intercontinental Hotel Singapore On 3 June
2014
SGX proposes
regulatory framework for secondary listings
The Singapore Exchange (SGX) has published a consultation paper on its
proposed regulatory framework for secondary listed companies on the
exchange. Under the current framework, the SGX reviews the legal and
regulatory requirements of the primary listing venue or 'home exchange' for
each company from a jurisdiction new to the exchange.
Singapore's three biggest
banks are ramping up hiring to capture a surge in demand from western
multinationals wanting to use local banks - rather than global rivals - as
they expand in the fast-growing markets of Southeast Asia. The move
highlights how multinationals - whether in retail, consumer, manufacturing
or engineering - are changing their banking relationships and dealing more
with local players as they seek to take advantage of the creation of a
single market in the Association of Southeast Asian Nations. (FT)
INDIA
The Narendra Modi government
will take a series of steps to rebuild investor confidence while keeping
fiscal consolidation firmly in sight as part of its plan to mend the
economy in the next two years and then make an aggressive push for growth
in the remaining three years of its term. (Economic Times)
The finance ministry is
examining various suggestions made by investment bankers to merge the
country's biggest state-run banks to create much stronger financial
institutions. One proposal suggests Punjab National Bank, Indian Bank and
Dena Bank be merged to create a bank with an asset base of more than Rs 9
lakh crore. (Economic Times)
India, US trade
officials to start work on policy forum meet
Trade officials of India and the US are expected to meet here soon to
prepare the groundwork for the ministerial level meeting of Trade Policy
Forum (TPF). "Dy. USTR expected to travel to India to prepare
groundwork for upcoming Ministerial Trade Policy Forum meeting,"
Commerce and Industry Minister Nirmala Sitharaman tweeted. Deputy Unites
States Trade Representative (USTR) Wendy Cutler will meet Commerce Secretary
Rajeev Kher. (Economic Times)
The Reserve Bank of India,
today, signed the Memorandum of Understanding (MoU) on "Supervisory
Cooperation and Exchange of Supervisory Information" with the
Financial Services Commission and the Financial Supervisory Services,
Republic of Korea. With this, the Reserve Bank has now signed 20 such MoUs
and one Letter for Supervisory Co-operation.
Know Your Customer
Norms/Anti-Money Laundering Standards/ Combating of Financing of Terrorism
/ Obligation of banks under Prevention of Money Laundering Act, 2002 -
Clarification on Proof of Address
JAPAN
Abe Orders Review
of Japan Pension Fund Assets: Tamura
Japan Prime Minister Shinzo Abe ordered an earlier review of the biggest
pension fund's portfolio, Health Minister Norihisa Tamura said today, amid
speculation the fund is already buying more stocks. Tamura will ask the
128.6 trillion yen ($1.3 trillion) Government Pension Investment Fund to
work on an overhaul of its investments, he said in Tokyo. (Bloomberg)
The Japan Financial Services
Agency has published a draft amendment to the regulations under the
Investment Trust and Investment Corporations Act (ITICA). The proposed
amendment aims to expand the scope of 'specified assets', which consists of
assets of investment trusts and investment corporations established
pursuant to the ITICA. According to the FSA, this proposal is in response
to growing investor interest in infrastructure investments, including in
infrastructure funds listed on stock exchanges. The draft amendment
proposes to include the following assets within the scope of 'specified
assets': renewable energy power generating facilities; and rights to manage
public facilities. Comments on the draft amendment are due by 7 July 2014.
AUSTRALIA
Speech by Governor Glenn
Stevens, to the Federal Reserve Bank of San Francisco's Symposium on Asian
Banking and Finance.
Reserve Bank governor Glenn
Stevens is backing moves requiring banks to aggressively build up capital
buffers ahead of schedule, saying this will leave them better prepared for
future shocks. As lenders complain that the Australian Prudential Regulation
Authority is being too hasty in implementing key parts of global banking
rules, Mr Stevens makes the case for banks increasing their capital levels
''faster, rather than slower.'' (Sydney Morning Herald)
THAILAND
The Joint Standing Committee
on Commerce, Industry and Banking has proposed a three-pronged strategy
aimed at boosting economic growth, supporting small and medium-sized
enterprises and enhancing foreign investor confidence. At the same time,
economic growth of between 2% and 2.5% is expected this year on the back of
resumed public stimulus measures. (Bangkok Post)
CYBERSECURITY
ASIFMA has compiled various
reports and articles listed below to raise awareness of the latest issues
and policy proposals to inform interested parties of the rapid developments
in the cyber world.
The Bank of
England launches new framework to test for cyber vulnerabilities
In a speech today at the British Bankers' Association, Andrew Gracie,
Executive Director, Resolution at the Bank of England, formally launched a
new framework to help identify areas where the financial sector could be
vulnerable to sophisticated cyber-attack. This is part of the Bank of
England's response to the Financial Policy Committee's recommendation to
test and improve resilience to cyber-attack.
The number of companies
reporting concerns about cyber security to US regulators more than doubled
in the past two years to 1,174, according to official data. Commercial
bankers and oil and gas producers were among those most worried about
attacks. Awareness of cyber crime has definitely increased due to the
severity of attacks.
INTERNATIONAL
The International
Organization of Securities Commissions today published a consultation
report on Good Practices on Reducing Reliance on CRAs in asset management.
The report is aimed at gathering the views and practices of investment
managers, institutional investors and other interested parties, with a view
to developing a set of good practices on reducing over reliance on external
credit rating in the asset management space.
UNITED STATES
US Senate Finance
Chiefs Set Summer Hearings on Tax Reform
Senate Finance Committee Chairman Ron Wyden and Sen. Orrin Hatch, the
ranking Republican on the panel, said Thursday they have agreed on a set of
hearings this summer to spur movement toward comprehensive tax reform. In a
joint statement, Wyden and Hatch said it's time to build momentum for tax
reform by breaking the issue into smaller pieces. (MNI News)
EUROPE
When deciding to lower the
key ECB interest rates at its meeting, the Governing Council of the ECB
took the decision to cut the interest rate on the deposit facility to
-0.10%.
Today, national ministers in
the Justice Council backed the Commission's proposal to modernise European
rules on cross-border insolvency. The modernised Insolvency Regulation will
provide a new approach to help businesses overcome financial difficulties,
shifting the focus away from liquidation, while protecting creditors' right
to get their money back.
ESMA announces
three open hearings on MiFID II
ESMA has opened registrations for the three open hearings on MiFID
II/MiFIR. The hearings will take place on 7 and 8 July and are open to the
public free of charge. Please note however that due to the expected high
level of interest attendance is limited to one person per
company/association.
The International Monetary
Fund has warned that a housing bubble could derail the UK's economic
recovery, as it urged the government to consider reining in the Help to Buy
scheme and called on the Bank of England to clamp down on risky mortgages.
(The Guardian)
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.