The most read financial stories in S&P Global Market Intelligence's Asia-Pacific coverage include China's increased scrutiny on the banking sector, while editors' picks feature analysts' opinion on Commonwealth Bank of Australia's new CEO.
Most read
1. Chinese insurers join others to invest 10.2B yuan in state-owned shipbuilders
New China Life Insurance Co. Ltd., China Life Insurance Co. Ltd., China Pacific Insurance (Group) Co. Ltd. unit China Pacific Property and Casualty Co. Ltd. and People's Insurance Co. (Group) of China Ltd. are participating in a round of capital injections into the subsidiaries of two listed China State Shipbuilding Corp. units, China CSSC Holdings Ltd and CSSC Offshore & Marine Engineering (Group) Co. Ltd.
2. Report: AIG eyes CBA's general insurance operations
American International Group Inc. is reportedly interested in Commonwealth Bank of Australia's general insurance arm, as the U.S. insurance giant considers building up its presence in Australia.
3. Report: MetLife eyeing sale of Hong Kong biz
New York-based MetLife Inc. is reportedly looking to sell its Hong Kong insurance unit in a deal that could raise more than US$600 million.
4. China to strengthen rules on banking sector, target irregular lending practices
The China Banking Regulatory Commission said it will inspect shareholders of banking institutions to see whether they have funded their investments without using borrowed funds, as the regulator strengthens scrutiny on the banking sector, particularly on irregular lending practices and shadow banking.
5. QBE Insurance forecasts US$1.2B after-tax loss for FY'17
Australia's QBE Insurance Group Ltd. expects to report an after-tax loss of approximately US$1.2 billion for the 2017 full year on the back of a higher combined operating ratio and two significant one-off, noncash items. The insurer said it forecasts a combined operating ratio of about 104% for the 2017 full year, higher than its previously outlined target range of between 100% and 102%.
Editors' picks
1. Commonwealth Bank of Australia's pick of insider as new CEO meets skepticism
Commonwealth Bank of Australia has picked a rising insider as its new CEO to fix its operational and compliance issues and rebuild public trust, but opinions are divided among analysts regarding the appointment. Matt Comyn, currently head of retail banking services, will begin his new role as CEO on April 9, replacing Ian Narev, who announced his departure in August 2017.
2. Fake Chinese data highlights pressure on local governments
A round of scandals over inflated economic data in China has highlighted the financial pressures faced by local authorities as the central government tries to curb mounting debts and shift the nation's economic growth priorities to quality over expansion at any cost.
3. China revises investment rules to nudge insurers to take longer-term view
New investment rules in China will further push the transformation of insurers that previously pursued aggressive expansion strategies and reward insurers that focus on long-term protection-oriented business, industry sources said. The China Insurance Regulatory Commission has published dozens of rules and notices since spring 2017 to push insurers toward selling long-term, protection-oriented insurance policies, rather than short-term contracts that had been offered as a type of wealth management, while voicing concern that selling short-term insurance policies to make long-term investments could cause asset-liability mismatches.
4. Rising Taiwan dollar tests life insurers' risk management, pressures earnings
Renewed gains for the New Taiwan dollar against the U.S. dollar demonstrate the peril that Taiwanese life insurers face in having to search outside their own borders for investment opportunities. With nearly two-thirds of Taiwanese life insurers' investment portfolios allocated to foreign-currency assets, mostly in U.S. dollars, gains in the Taiwanese currency against the greenback could mean heightened risk of foreign-exchange losses and a rise in hedging costs.
5. Philippines central bank chief: No rate hike yet, despite inflation pressures
The Philippines' central bank governor sees no need to raise interest rates at the current time, in spite of an expected increase in inflation stemming from tax reforms. Speaking to S&P Global Market Intelligence, the central bank's governor, Nestor Espenilla Jr., said it was understood that tax reforms will have an impact on certain consumption items and that the bank does not have to react to first-round effects.
