|
10 - 17 June
2014 | Issue 208
Kindly
note the Asia Regulatory Review will take a summer break until the 15 July
2014.
Promoting Convergence and
Investments in EU-Asian Financial Markets, co-organised by ASIFMA &
CEPS on 18 - 20 June 2014.
ASIFMA comfort
letter initiative to speed up HK deals
The Asia Securities Industry and Financial Markets Association (Asifma) is
drafting an umbrella agreement to supplement Hong Kong's comfort letter
standard. It is expected to speed up negotiations between underwriters and
auditors. (IFLR)
The Monetary Authority of
Singapore (MAS) announced that a facility for providing overnight Renminbi
(RMB) liquidity to financial institutions in Singapore will be launched on
1 July 2014. MAS also welcomed the directive issued by the People's Bank of
China (PBC) Nanjing branch that will allow eligible corporates and
individuals in the Suzhou Industrial Park (SIP) to conduct cross-border RMB
transactions with Singapore. These initiatives will further promote the
international use of RMB and facilitate the growth of the RMB offshore
market in Singapore.
CHINA
China beefs up
financial support for trade
China's central bank called for more financing channels for the country's
import and export businesses, in efforts to stabilize foreign trade.
Commercial banks are urged to innovate their products and services, such as
expanding borrowing to companies on export credit insurance, and more
flexibility in lending to enterprises' short and medium-term capital needs,
said the People's Bank of China (PBoC), the central bank. (Xinhua)
The central bank recently
announced it would ease restrictions on cross-border use of the yuan to
support trade and facilitate foreign companies' operations. The
announcement, published on the central bank's website on June 11, says
"banking financial institutions can conduct cross-border yuan
settlement for individuals operating in goods and services trade
businesses." (Caixin)
The Chinese government's
selective reserve ratio cut went into effect Monday, with some nationwide
banks also allowed to participate, as Beijing continues to try to target
monetary easing without loosening conditions throughout the economy. Four
market sources said China Minsheng Bank and Industrial Bank of China have
been allowed by the People's Bank of China to cut their reserve requirement
ratios by the 50 basis points enjoyed by rural and city commercial lenders.
(MNI News)
PBOC extends
access to its credit rating system
Three micro credit companies in Shanghai are among the first to receive
access to the People's Bank of China's credit rating system, an important
tool for them to review credit records of potential borrowers. Shanghai
Changning Chang Cheng Micro-Loan Co, Jiading Jishiyu Micro-credit Co, and
Zhabei Shibei Hi-tech Micro-Loan Co can now make credit history inquiries
through the central bank's system. (Ecns)
CSRC issues rules
for Shanghai-Hong Kong Stock Connect scheme | (Chinese Only)
Following a two week consultation period, the China Securities Regulatory
Commission (CSRC) has issued the 'Provisions on the Mechanism of the
Connection between the Shanghai and Hong Kong Stock Markets', which are
intended to facilitate the launch of the Shanghai-Hong Kong Stock Connect
pilot programme. There are no substantial changes from the consultation
draft issued by the CSRC on 9 May 2014. Amongst others things, the rules:
- Set out the principle that trading and settlement activities must comply
with the regulations and rules of the jurisdiction where such activities
take place, and the relevant listed companies and brokers should be subject
to the regulations/rules where they are listed or incorporated;
- Prescribe the duties and authorities of the Shanghai Stock Exchange
(SSE), the Hong Kong Stock Exchange (HKSE), the securities trading service
agencies and the securities clearing and depository institutions in both
Shanghai and Hong Kong;
- Authorise the SSE and HKSE to suspend the programme under abnormal
circumstances; and
- Clarify the settlement procedures between the Shanghai and Hong Kong
clearing and depositary institutions.
- The rules became effective immediately
Policy fears
mount as FX reserves increase
China's rapid accumulation of foreign exchange reserves is leading to
difficulties in steering economic policy, analysts and officials with the
foreign exchange regulator said on Thursday.
The nation will keep reserves at a "reasonable" level, officials
of the State Administration of Foreign Exchange said in an online
interview. (Ecns)
China, Britain to
ink deals during Premier Li's visit
Chinese Premier Li Keqiang's upcoming visit to Britain will result in a
number of bilateral deals regarding energy, automobile and finance, said
Chinese Vice Minister of Commerce Gao Yan here on Thursday. Gao told a
press briefing the deals include both inter-governmental agreements and
business contracts. Li will attend the annual meeting of Chinese premier
and British prime minister and conduct official visits to Britain and
Greece from June 16 to 21. (Xinhua)
HONG
KONG
The Securities and Futures
Commission (SFC) and the Securities Commission Malaysia (SC) today jointly
organised a seminar in Hong Kong to explore the potential of Hong Kong as
an Islamic fund platform. In her opening remarks, the SFC's Deputy Chief
Executive Officer and Executive Director, Investment Products,
International and China, Mrs Alexa Lam, said Hong Kong is keen to further
develop its Islamic finance market.
SINGAPORE
China, Singapore
vow to further deepen cooperation
Chinese State Councilor Yang Jiechi on Thursday met with Singaporean
Minister for Foreign Affairs and Law K. Shanmugam, vowing to further
strengthen bilateral ties. Highlighting the good momentum of
China-Singapore ties and mutually beneficial cooperation in various fields,
Yang said China would like to boost exchanges with Singapore at all levels.
China will work with Singapore to promote the healthy development of
China-ASEAN ties and contribute to regional peace and stability, said Yang.
(Xinhua)
The Republic will implement
all the provisions of the World Trade Organization's Agreement on Trade
Facilitation once it comes into force, which is expected to be by July 31,
2015, says the Ministry of Trade and Industry. (Channel News Asia)
INDIA
Narendra Modi to
Visit Japan in Early July
Indian sources are reporting that Indian Prime Minister Narendra Modi will
visit Japan in the first week of July. According to the Indian Express,
Modi will head to Japan following his first bilateral overseas visit, a
trip to Bhutan. India and Japan have held annual prime ministerial summits
since declaring a Strategic Global Partnership in 2006. Japanese Prime
Minister Shinzo Abe most recently visited New Delhi as the chief guest at
India's Republic Day celebrations in January 2014. (The Diplomat)
The Reserve Bank of India has
finalised banks' liquidity coverage ratio plan and told them to keep 60%
coverage from January 2015 and raise the level to 100% in phases. (Economic
Times)
The Financial Sector
Legislative Reforms Committee (FSLRC) Report is one of the most important,
well researched, as well as well-publicized reports in Indian financial
history. It not only lays out the functions of the financial sector and how
it should be structured, but also how legislation and regulation governing
it ought to look like. The authors of this report truly have to be
commended for their national service. The report's influence will be felt
for many years to come.
The
Reserve Bank of India (RBI) issued a circular dated April 03, 2014
regarding harmonization of KYC norms for FPIs. In the light of the
circular, it was decided:
- The
DDPs are advised to share the relevant KYC documents with the banks
concerned based on written authorization from the FPIs.
- Accordingly, a set of hard
copies of the relevant KYC documents furnished by the FPIs to DDPs may be
transferred to the concerned bank through their authorised representative.
- While transferring such documents, DDPs shall certify that the documents
have been duly verified with the original or notarised documents have been
obtained, where applicable. In this regard, a proper record of transfer of
documents, both at the level of the DDP as well as at the bank, under
signatures of the officials of the transferor and transferee entities, may
be kept.
Prime Minister Narendra Modi
has warned of tough measures to repair the economy. There is no denying
that restoring the economy would require some unpopular decisions, but the
tough talk could also be a calibrated move to tone down expectations. The
measures may also include an attempt spruce up the Railways, which has been
ailing due to populist steps taken by previous railway ministers. ET looks
at some possibilities (Economic Times)
JAPAN
The government of Prime
Minister Shinzo Abe on Monday unveiled policy steps aimed at ensuring
growth in the face of demographic challenges, including the increased use
of foreign workers and eased labor rules for white-collar employees. (WSJ)
Japanese Prime Minister
Shinzo Abe's latest growth strategy is coming into view weeks before its
formal unveiling, with a mixed bag that includes a corporate tax cut and a
retreat from an agriculture overhaul. Mr. Abe said Friday that the
government has decided to reduce the corporate-tax rate below 30% in
several years' time, down from around 35% now. The government agreed to
find offsetting revenue but put off a detailed plan until the end of the
year. (WSJ)
Bank of Japan
Raises View on Overseas Economies
The Bank of Japan raised its view on overseas economies Friday, setting the
stage for a future pickup in exports that the central bank has long hoped
for to make the country's economic recovery sustainable. As was widely
expected, the BOJ also decided unanimously to continue its easing campaign
of increasing the country's monetary base at an annual pace of 60 trillion
Yen to 70 trillion Yen ($590 billion to $690 billion) to stamp out
deflation. (WSJ)
Japan's government is
readying to unfetter its huge public pension fund, freeing managers to dump
low-yield sovereign bonds and go in search of higher, but riskier returns,
in a move that could see cash flood global markets. (Channel News Asia)
AUSTRALIA
The Board decided to leave
the cash rate unchanged at 2.5 per cent.
MALAYSIA
The Government has announced
further liberalisation measures to strengthen the economy and promote
investment. This includes lifting the barrier on new foreign unit trust
management companies entering Malaysia. This new measure, to take effect
immediately, is aimed at making a wider range of competitive products
available to investors and increasing competition in the sector. (The Star)
Bursa Malaysia Bhd plans to
introduce more sophisticated investment products, as it steps up efforts to
lure investors to the local stock exchange. Among the initiatives taken to
broaden the bourse's appeal is the establishment of a Bursa
Malaysia-centric Environmental, Social and Governance (ESG) Index. This,
according to Bursa, will strengthen its position as a leading exchange in
the region. (The Star)
CYBERSECURITY
U.S. telecom
chief tells industry to lead on cybersecurity
The top U.S. telecom regulator on Thursday told communications companies to
take the lead in fortifying their networks against cyberattacks, saying
they can do more to bolster security short of new government regulations.
In his first major speech devoted fully to cybersecurity, Federal
Communications Commission Chairman Tom Wheeler urged the private sector to
"step up to assume new responsibility and market accountability for
managing cyber risks" before the FCC weighs a regulatory approach to
the problem. (Reuters)
INTERNATIONAL
International
housing bubble is forming, IMF warns
The American housing market is frothy with some already seeing signs of a
legitimate bubble, and now the International Monetary Fund is raising the
alarm about housing markets in developed countries. (Housing Wire)
IOSCO Intensifies
work on Market-Based Finance
The Board of the International Organization of Securities Commissions
(IOSCO) met in Madrid this week to drive forward IOSCO's work on
market-based finance. Chairman Greg Medcraft said 'Capital markets are
emerging as a key source of the finance needed across the globe to drive
economic growth. Through a work agenda focused on fostering markets as a
trusted source of capital, IOSCO is playing an important role in supporting
that growth.'
Clock ticking to
resolve third country CCP rules
Regulators are running out of time to agree on cross-border rules for
listed and OTC derivatives clearing and risk damaging Europe's financial
markets, according to panelists at the International Derivatives Expo (IDX)
2014. (The Trade)
UNITED STATES
The International Monetary
Fund (IMF) has slashed its US growth forecast, urged policy makers to keep
interest rates low and raise the minimum wage to strengthen its recovery.
The crisis lender said it expects 2% growth this year, down from its April forecast
of 2.8%, after a "harsh winter" led to a weak first quarter.
(BBC)
EUROPE
The European Securities and
Markets Authority (ESMA) has published a report on the application of
accounting requirements for business combinations in IFRS financial
statements. The report, based on a review of the annual IFRS financial
statements of 56 issuers in the European Union (EU), examines the
consistency of how key requirements of IFRS 3 - Business Combinations are
applied and provides recommendations to issuers, and suggestions to the
IASB, on areas where the usefulness and quality of the financial
information could be improved.
The report provides an
overview of ESMA's activities in 2013 as the European Union's securities
market regulator, focusing on its tasks and achievements and setting out
the Work Programme for 2014.
Bank Recovery and Resolution Directive
published in Official Journal
The Directive provides national authorities with tools to pre-empt bank
crises by introducing instruments at preparatory and preventative, early
intervention and resolution stages of bank failure. Member States have
until 31 December 2014 to transpose the Directive into national law.
The UK Government
announces review of wholesale financial market
The government is today announcing further steps to raise standards of
conduct in the financial system with a joint review by the Treasury, the
Bank of England and the Financial Conduct Authority (FCA) into the way
wholesale financial markets operate. Strong and successful financial services
that set the highest standards are an essential part of building a
resilient economy. The government will consult on these steps in the
Autumn. The Review will run for 12 months.
The EU is threatening to
exclude banks, hedge funds, insurers and other financial companies from a
trade deal with the US amid a fight with Washington over how to co-operate
on regulation. Brussels and Washington are negotiating the terms of what
would be the world's biggest regional trade agreement, covering almost half
of global economic output and a third of world trade. With many
transatlantic tariffs already low, the mooted pact's biggest goal is to
lower regulatory and other non-tariff barriers to trade between the EU and
US. (FT)
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.