GREATER CHINA
* Industrial & Commercial Bank of China Ltd. agreed to pay a US$5.3 million fine to the U.S. Financial Industry Regulatory Authority over inadequate anti-money laundering measures, Caixin in China reported. The regulator found that the bank's U.S. unit had assigned critical monitoring duties involving so-called penny stocks, or stocks valued at less than US$1, to a nonexistent employee title, with no employee actually performing such duties. ICBC also agreed to pay US$860,000 to the U.S. Securities and Exchange Commission for failing to report suspicious activities in penny stock transactions.
* The People's Bank of China vowed to improve information disclosure and transparency in its policy-making process to better communicate its intention with markets, Reuters reported, citing a notice published on the bank's website. The central bank said it will release its policy intentions in a timely manner, and will closely observe media reports and public opinion to prevent its intentions from being misread by the financial market.
* Ant Financial Services Group entered into a strategic cooperation agreement with China Everbright Bank Co. Ltd. and its financial technology affiliate, Everbright Technology, to help the lender in its digital push, the South China Morning Post in Hong Kong reported. The deal will allow the Alibaba Group Holding Ltd. affiliate to share its financial technology know-how and capabilities with the bank, and enable the establishment of an innovation lab to incubate fresh fintech applications.
JAPAN AND KOREA
* Japan-based Monex Group Inc. CEO Oki Matsumoto told The Mainichi Shimbun that the company's digital currency exchange operator, Coincheck Inc., is working to restart cryptocurrency operations in June, following a US$530-million theft in January. Matsumoto added that Monex plans to expand its cryptocurrency business in the U.S., Australia and Hong Kong.
* Seiji Nakata, president of Japan's Daiwa Securities Group Inc., said the company plans to increase customer assets to ¥100 trillion by fiscal 2023 from ¥68 trillion at the end of March, the Nikkan Kogyo Shimbun reported.
* South Korea's Financial Services Commission said its Securities and Futures Commission approved a money market license for NH Investment & Securities Co. Ltd. May 23, giving the company full-fledged investment bank status, The Dong-A Ilbo in South Korea reported.
* South Korea's Samsung Securities Co. Ltd. started disciplinary actions, including dismissals, job suspensions and salary cuts, against 23 employees involved in the dividend payout blunder in April, The Chosun Ilbo in South Korea reported.
* Park Hyeon-joo, chairman of South Korea-based Mirae Asset Financial Group, will withdraw from the group's day-to-day operations as chairman and concentrate on overseas business as the global investment strategy officer, The Chosun Ilbo reported. Park's term as chairman expired May 12.
ASEAN
* The State Bank of Vietnam approved the acquisition of Vietnam Posts and Telecommunications Group's finance unit, Post and Telecommunication Finance Co. Ltd., by Southeast Asia Commercial Joint Stock Bank, or SeaBank, Viet Nam News reported, citing a decision signed by central bank Governor Le Minh Hung. The two parties will have to complete all procedures related to the transaction before Aug. 22.
* Japan-based Daiwa Securities Group Inc. purchased 3.68 million shares in Vietnam-based Saigon Securities Inc. in a series of transactions between April 19 and May 18, Viet Nam News reported. The transactions brought Daiwa Securities' stake in Saigon Securities to 20.39%, or 101.98 million shares, from 19.66%.
* Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, will debut on the Ho Chi Minh City Stock Exchange June 4 after raising about US$922 million in its IPO in April, Reuters reported, citing a company statement. Techcombank will list at a reference price of 128,000 dong, appraising the lender at US$6.5 billion and making it the country's second-biggest listed bank after state-controlled Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank.
* Former Malaysian Prime Minister Najib Razak's government had tapped Bank Negara Malaysia to pay off a US$500 million debt by troubled state fund 1Malaysia Development Bhd., or 1MDB, The Wall Street Journal reported, citing unidentified sources. The sources said the money came from a land deal involving the central bank, as opposed to a December 2017 statement from 1MDB, saying the funds came from an "ongoing rationalization program" that involved divesting holdings in power plants and land.
* Indonesia's Financial Services Authority is looking for a new board of directors for PT Asuransi Jiwa Bersama Bumiputera 1912 after stepping in to address financial issues at the country's oldest insurer, Bisnis Indonesia reported.
* The Bank of Thailand appointed Ronadol Numnonda as the central bank's new deputy governor for monetary stability, effective Oct. 1, the country's Manager Daily reported.
SOUTH ASIA
* The Indian government is mulling the establishment of a regulator, called the Alternate Markets Commission, for the US$500 billion startup funding market for local enterprises, the country's Mint reported. The proposed commission, which would be a separate entity from the corporate affairs ministry and the Securities and Exchange Board of India, would be in charge of drafting regulations to encourage and facilitate ways for unlisted companies to raise funds from investors.
* Gunit Chadha obtained approval from India's National Housing Bank to set up his proposed housing finance venture, named APAC Housing Finance, The Economic Times in India reported. Harpreet Singh will lead the venture, which is part of APAC Financial Services, according to the publication. The license granted to APAC Housing Finance bars it from accepting public deposit.
* India's Financial Services Secretary Rajeev Kumar said the country will make sure all state-owned banks meet their minimum capital requirements after the lenders posted huge losses in the quarter ended March 31, Reuters reported. The lenders' bad loans increased after the Reserve Bank of India removed a number of loan restructuring schemes to speed up the bad debt cleanup in February.
* The Pakistan government appointed three United Arab Emirates banks — Commercial Bank of Dubai PSC, Emirates NBD Bank PJSC and Noor Bank PJSC — to raise a US$200 million loan, with a one-year maturity, Reuters reported, citing anonymous banking sources. Finance Minister Miftah Ismail confirmed that Pakistan was borrowing US$200 million, which would support the country's debt repayments.
AUSTRALIA AND NEW ZEALAND
* Australian investment company Yorkway Partners is making a "significant minority investment" in local broking and underwriting business Insurance House, The Australian Financial Review reported, citing Paul Batchelor, who currently heads the investment firm. Insurance House has over 180 employees across 11 offices, as well as a network of 50 authorized representatives, according to the newspaper. Batchelor, who was the former chief of AMP Ltd., noted that the revelations involving big companies at the Australian royal commission, an inquiry into the country's scandal-ridden financial sector, will help the smaller private groups.
* Australia's royal commission into the financial sector heard that bankers at Westpac Banking Corp. still receive bonuses mainly based on selling financial products despite an industry-wide review discouraging the practice, The Australian reported. Meanwhile, Australia & New Zealand Banking Group Ltd. refuted allegations at the inquiry that its push to lure new business loans caused bankers to ignore proper due diligence, The Australian Financial Review reported.
* Commonwealth Bank of Australia hired Citigroup to manage the sale of its 37.5% stake in China-based BoCommLife Insurance Co. Ltd., a joint venture with Bank of Communications Co. Ltd., The Australian reported. The stake will be sold to Japan's Mitsui Sumitomo Insurance Co. Ltd. for A$668 million.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Emirates NBD snaps up DenizBank; Nigeria holds rates; Misr to list 2 units
Europe: Barclays said to be mulling StanChart merger; Julius Bär AUM passes CHF400B
Latin America: Tanner looks to become Chile's largest fintech; Argentina holds key rate
North America: Independent Bank buying Guaranty for $1B; Far Point Acquisition to raise $400M
North America Insurance: American Equity eyeing sale; Q1 US annuity sales flat; insurtech investments up
Janna Estares, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.
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