TOP NEWS IN BANKING & FINANCIAL SERVICES
– China's central economic work conference set the country's economic priorities for 2026, emphasizing the continuation of a more proactive fiscal policy, which involves maintaining necessary fiscal deficit, debt levels and total expenditure while tackling local government financial difficulties, Xinhua News Agency reported. The government also pledged to enhance counter-cyclical and cross-cyclical adjustments, improve fiscal management and optimize the structure of fiscal expenditures.
– South Korea is planning to establish a sovereign wealth fund that will invest in state-owned assets valued at approximately 1,300 trillion won, The Korea Economic Daily reported, citing the finance minister. This fund will be modeled after Singapore's Temasek Holdings (Pvt.) Ltd. and the Australian Government Future Fund.
➤ November $10B+ M&A deals set Q4 up to outpace prior quarter
Four deals announced in November, with transaction values exceeding $10 billion, bring the quarter's total in line with that of the prior quarter.
➤ India, Japan to drive Asia-Pacific dealmaking in 2026 as China slows
Following their lead in driving Asia-Pacific's M&A market in 2025, India and Japan are expected to maintain their momentum in 2026, supported by favorable macroeconomic conditions.
READ MORE about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus
BANKING
– Bank of Baroda Ltd. and State Bank of India will each subscribe to 10 million equity shares of Indian Digital Payment Intelligence Corp. at 10 Indian rupees per share to acquire a 50% stake in the company and become its initial promoters, according to separate stock exchange filings. The new entity's platform will combat payment fraud by using advanced technologies and enabling real-time data sharing across the payment ecosystem.
– JPMorgan Chase & Co. is opening a new branch in India after nearly a decade, Bloomberg News reported, citing a company statement. The US-based investment bank obtained in-principle approval from the Reserve Bank of India to establish its fourth branch in Pune. JPMorgan's CEO for Asia-Pacific, Sjoerd Leenart, said India's domestic growth and its increasing integration with the global economy present "huge opportunities" for both Indian and foreign clients.
– Westpac Banking Corp. CEO Anthony Miller and Chairman Steven Gregg defended gas industry lending after activists accused the bank of diluting climate commitments, the Australian Financial Review reported. The leaders said the Australian lender would not abandon long-term borrowers, rejecting claims that it had failed to rigorously assess customers' transition plans.
– HSBC Holdings PLC gave its sell-side advisers clearance to scale down the sale process of its A$30 billion-plus loan book after failing to find buyers for its Australian retail business, the Australian Financial Review 's Street Talk blog reported, citing sources. Citigroup Inc. is preparing a fresh auction for the portfolio, the sources said.
– More than 20 Chinese banks, including China Zheshang Bank Co. Ltd. and Chongqing Rural Commercial Bank Co. Ltd., decided to eliminate their supervisory boards or plan to do so, China Securities Journal wrote, citing industry sources. The report added that the powers of these supervisory boards will be transferred to the audit committee to reduce operational costs and improve governance efficiency.
– Mizuho Financial Group Inc. CEO Masahiro Kihara said he expects investment-banking momentum to continue in Japan and the US, where the bank has been expanding, Bloomberg News reported. The lender has successfully integrated US-based independent investment bank Greenhill & Co. Inc., which was acquired in 2023, and is now seeing positive results. This integration enables the Japanese megabank to pursue larger M&A transactions, Kihara said.
– Philippine National Bank raised 15.7 billion Philippine pesos from a dual-tranche Southeast Asian sustainability bond offering under its 50 billion bond and commercial paper program. The bank raised 10.88 billion pesos from its fixed-rate series A sustainability bonds due 2028 at 5.4877% per annum and 4.82 billion pesos from its fixed-rate series B sustainability bonds due 2030 at 5.7764%, according to a stock exchange filing.
– PT Bank CIMB Niaga Tbk expects to complete the spinoff of its sharia business unit by May 2026, Bisnis Indonesia reported. The Indonesian bank's sharia banking director, Pandji Djajanegara, said the move to create a standalone entity aligns with regulatory mandates and aims to accelerate growth.
FINANCIAL SERVICES
– The Japanese government proposed allowing bond-focused mutual funds into the installment-based tier of its tax-free Nippon Individual Savings Account investment program, which has an annual limit of ¥1.2 million, The Nikkei wrote. Previously, the scheme required more than 50% equity exposure, excluding designated funds. By adding lower-risk bond funds, this change is expected to broaden investment options and help investors tailor their portfolios to suit their individual risk preferences and generational needs.
– South Korea's Financial Services Commission launched the National Growth Fund, a 150 trillion won program designed to accelerate high-tech strategic industries over the next five years. The fund will comprise 75 trillion won in government-guaranteed bonds and an additional 75 trillion won from private-sector financing.
– India's Aditya Birla Capital Ltd. completed its conversion to an investment and credit company from a core investment company, according to a stock exchange filing.
– The Australian Securities and Investments Commission suspended MW Planning Pty Ltd.'s Australian financial services license until June 8, 2026, for failing to replace a banned responsible manager. The regulator said the firm violated its competence obligations by failing to appoint a successor to Robert John Tohill after his removal in August.
POLICY AND REGULATION
– The Hong Kong Monetary Authority lowered its base interest rate by 25 basis points to 4.0%, effective immediately. The Hong Kong central bank's decision comes in response to the 25-basis-point decrease in the target range for the US federal funds rate Dec. 10, according to a news release.
– The Securities and Futures Commission imposed a penalty of HK$10.85 million on Swiss lender EFG Bank AG for failures in product due diligence, recordkeeping and timely reporting between 2015 and 2020. The enforcement action followed EFG's self-report and a referral from the Hong Kong Monetary Authority, according to a news release. The regulators said EFG has taken remedial measures to enhance its product due diligence framework and cooperated with them in resolving the concerns identified in the investigations.
– Reserve Bank of India canceled the licenses of The Gem Investment & Trading Co Pvt Ltd, Shri Lakhavi Financial Services Ltd., Vistar Financiers Pvt. Ltd. and Ambica Barter Pvt. Ltd. Four other Indian nonbank lenders — YG Capital Ltd., Intell Invofin India Pvt. Ltd., Gangotri Commodities and Finvest Pvt. Ltd. and Perkin Dealers Pvt. Ltd. — surrendered their registrations.
– The Australian Prudential Regulation Authority said it imposed license conditions on H.E.S.T. Australia Ltd over risk and governance concerns during an administration provider switch. The Australian regulator said the transition, which was finalized in June, had severely disrupted services and harmed members.
INDUSTRY NEWS
– China's Ministry of Finance said it will roll over 750 billion yuan in special treasury bonds that will mature Dec. 12. The bonds, which will be issued to designated banks through a targeted issuance in the national interbank bond market, include 400 billion yuan of 10-year bonds and 350 billion yuan of 15-year bonds.
– South Korea will start issuing three-year treasury bonds for retail investors in 2026, Yonhap News Agency reported. The initiative is part of the government's efforts to broaden the investor base in the bond market, aligning with the country's planned inclusion in a major global government bond index, Finance Minister Koo Yun-Cheol said at a conference.
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As of Dec. 11, US$1 was equivalent to 7.06 Chinese yuan, ¥155.26, 1,470.97 South Korean won, 58.95 Philippine pesos and 90.20 Indian rupees.
R Sio, Eden Estopace, Sally Wang, Emi White, Aditya Suharmoko and Sarun Saelee contributed to this report.
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