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Great Eastern in Malaysian M&A talks; Macquarie ups FY'18 profit guidance

GREATER CHINA

* The People's Bank of China will impose more stringent regulations on local investors taking part in overseas transactions of initial coin offerings and virtual currency, as part of efforts to guard against financial risks and to sustain stability, Xinhua News Agency reported, citing a statement from the regulator. The central bank said overseas ICO transaction platforms pose risks including illegal offerings, false information, fraud and pyramid schemes.

* China-based Bank of Communications Co. Ltd. unit BOCOM Financial Asset Investment Co. Ltd. has formally commenced operations with a registered capital of 10 billion yuan. The bank had received regulatory approval in December 2017 to open the investment unit, which will engage primarily in debt-to-equity swaps and other supporting businesses.

* Alibaba Group Holding Ltd. affiliate Ant Financial Services Group is applying for a consumer finance license in China, the 21st Century Business Herald reported. Once the application is approved, the consumer finance company will be established in the Chinese city of Chongqing.

* The balance of China's wealth management products at the end of 2017 clocked in at 29.54 trillion yuan, up 1.69%, but with growth down by 21.94 percentage points compared with 2016, Xinhua News Agency reported, citing a report by an industrial body that tracks the sector. Among them, the balance of financial interbank wealth management products declined over 50% year over year.

JAPAN AND KOREA

* Akira Kondo, governor of Japan Bank for International Cooperation, said the company is considering an issuance of Chinese yuan-denominated bonds, known as panda bonds, to diversify channels and to procure yuan funds for Japanese companies expanding into China, Jiji Press reported.

* Japan's monetary base in January declined 4.1% on an annualized basis compared with December 2017, as the central bank cut back on bond purchases in early 2018, The Nikkei reported. This marks the first decrease of the monetary base since November 2012.

* Japan-based Nanto Bank Ltd. decided to acquire Nara Securities by March 2019, The Nikkei reported. Entering the securities market would allow the lender to expand its fee income, the report said.

* Choi Jong-ku, chairman of South Korea's Financial Services Commission, said the government would grant more banking licenses, a move aimed at boosting the lending sector while relaxing regulations on other services, Yonhap News Agency reported. The regulator will roll out regulatory reform packages during the first quarter, Choi added.

ASEAN

* The working committees of four Thai authorities — the Securities and Exchange Commission, the Bank of Thailand, the Anti-Money Laundering Office and the Finance Ministry — will report the results of their cryptocurrency study to the government by Feb. 28, Manager Daily reported, citing Pornchai Thiraveja, an adviser to the Fiscal Police Office. The SEC is also issuing regulations for initial coin offerings by local private companies, Pornchai said.

* Thailand's Revenue Department is deploying nearly 3,000 electronic data capture terminals to its offices across the country to support personal and corporate tax payments, following an agreement signed by the department with Kasikornbank PCL and Krung Thai Bank PCL, Manager Daily reported. The device installation is expected to be completed in February, while the system implementation is set to begin in early March.

* Thailand-based Bank of Ayudhya PCL unit Ayudhya Capital Services Co. Ltd. plans to offer digital lending services in the second quarter, Post Today reported, citing Nayanee Peaugkham, managing director of the unit. The company is looking to extend a total of 7 billion baht in loans through its digital channels in three years.

* PT Bank Kesejahteraan Ekonomi is planning a rights issue of 200 billion to 300 billion Indonesian rupiah in April, CEO Sasmaya Tuhuleley told Bisnis Indonesia. The lender is also planning to file an IPO during the second half.

* Singapore-based Great Eastern Holdings Ltd. is in talks with Malaysia's Employees Provident Fund to sell a minority stake in unit Great Eastern Life Assurance (Malaysia) Bhd. in a deal that could fetch up to US$1 billion, The Wall Street Journal reported, citing "people familiar with the discussions." The talks are part of Great Eastern's strategy to meet a June deadline to comply with a 70% ownership cap imposed by Bank Negara Malaysia. If no agreement is reached, Great Eastern may consider listing its insurance unit, with the pension fund having the option to take part in the IPO, the sources noted.

SOUTH ASIA

* The Indian government will take steps to make cryptocurrencies illegal within the country's payment system, and will appoint a regulator to oversee unregulated exchanges trading in "crypto assets," Reuters reported, citing Economic Affairs Secretary S.C. Garg in a statement to CNBC TV18. A panel set up by the government to look into cryptocurrency-related issues is expected to submit its report on or before March 31, Garg noted.

* Canada's Fairfax Financial Holdings Ltd., U.S.-based Warburg Pincus LLC and General Atlantic LLC joined the race to acquire Legal & General Group Plc's 26% stake in IndiaFirst Life Insurance Co. Ltd., Mint reported, citing "two people aware of the development." Legal & General is said to have appointed investment bank Ambit Corporate Finance Pvt. Ltd. to find a buyer for its stake in the South Asian insurer.

* Indian Overseas Bank is looking to launch a qualified institutional placement to raise about 10 billion rupees and will hire bankers for the process, Mint reported, citing a tender on the lender's website. The bank said the amount to be raised is indicative and the issue size may change depending on its discretion. The deadline for submission of bids is Feb. 23, the tender showed.

* India-based Mahindra & Mahindra Financial Services Ltd. is in discussions to raise as much as US$300 million through masala bonds, or rupee-denominated offshore bonds sold to overseas investors and settled in U.S. dollars, Mint reported, citing "two people directly aware of the company's discussions with potential lenders." The bonds will be placed in two tranches and will mature in five years and seven years, the sources said.

* India Post Payments Bank will roll out its branches across the country between May and September, with an investment of about 14.50 billion rupees, Press Trust of India reported, citing Postal Secretary Ananta Narayan Nanda. The country's Department of Posts in January 2017 obtained a license from the central bank to commence operations of its payments bank.

AUSTRALIA AND NEW ZEALAND

* The Reserve Bank of Australia is expected to keep its interest rate unchanged at 1.5% on Feb. 6, citing a weak inflation reading of 1.9% for the fourth quarter of 2017, well below the central bank's 2% to 3% target range, Australian Associated Press reported, citing economists.

* Macquarie Group Ltd. expects its net profit for the fiscal year ending March 31 to be about 10% more than its fiscal 2017 net profit of A$2.22 billion. Macquarie noted that trading conditions across the group were "satisfactory" in the quarter ended Dec. 31, 2017, and that the annuity-style businesses' net profit contribution for the quarter was up year over year.

* Australia-based Challenger Ltd.'s interest in acquiring AMP Life Ltd. from AMP Ltd. is said to have waned in recent weeks, The Australian Financial Review's Street Talk blog reported. Unnamed sources said AMP had hoped to announce an asset sale at its full-year results on Feb. 8, but the timetable for the life insurance unit may have been too optimistic considering the complexity involved in the deal and related distribution arrangements.

* The Reserve Bank of New Zealand is widely expected to maintain its benchmark official cash rate at 1.75% on Feb. 8, as a strengthening of the country's labor market fails to generate inflation, Stuff.co.nz reported.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: CI Ratings downgrades Oman; South Africa fines Chinese bank branch

Europe: Deutsche's Postbank lawsuit drags on; Allianz bets on Sri Lanka

Latin America: 2 Bradesco execs face charges; bankruptcy filings in Brazil down 26.1% YOY

North America: Fed sanctions Wells Fargo; JPMorgan clients air concerns over healthcare venture

North America Insurance: States eyeing insurance mandates; some insurers worried about new health venture

R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.

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