* U.K.-based Standard Chartered PLC is looking to consolidate its Asian operations to two new hubs in Singapore and Hong Kong to cut costs and simplify the company's extensive network, sources familiar with the plan told Bloomberg News. The bank plans to combine as many as 10 Southeast and South Asian operations under a new Singaporean unit as soon as 2019, the sources said, adding that the non-China North Asian operations could be consolidated into a separate Hong Kong unit.
GREATER CHINA
* The China Securities Regulatory Commission has approved Hong Kong-listed People's Insurance Co. (Group) of China Ltd.'s plan to seek a secondary listing on the Shanghai Stock Exchange to replenish its capital. The group is looking to issue up to 4.6 billion China-listed A shares, or 9.78% of its enlarged share capital, Shanghai Securities News reported.
* Ant Financial Services Group, an Alibaba Group Holding Ltd. affiliate, is shifting its focus to technology services from payments and consumer finance, partly driven by growing regulatory pressure on the company's core financial businesses, Reuters reported, citing four sources with knowledge of the matter. According to confidential company projections viewed by the news outlet, technology services would represent 65% of Ant Financial's revenue in five years against an estimated 34% in 2017.
* Chinese government entities including the China Securities Regulatory Commission and the Ministry of Science and Technology are studying a proposal to set up a new trading venue in Shanghai that would have lower thresholds for biotechnology and technology firms, Bloomberg News reported, citing unnamed sources. The new market is likely to operate at the Shanghai Stock Exchange, the sources said.
JAPAN AND KOREA
* Japan's Financial Services Agency is looking to reject the registration of Yokohama-based virtual currency trader FSHO, alleging that the latter's customer verification systems were substandard, Tokyo's The Nikkei reported. The regulator will make the move amid plans to establish a sound currency trading environment in the country.
* South Korean private equity firm MBK Partners Ltd. stalled its plan to divest its 59.19% stake in ING Life Insurance Korea Ltd. after KB Financial Group Inc. backed out of the estimated US$2.30 billion deal, The Korea Times reported. A KB Financial official said the group decided to withdraw its bid as MBK Partners' asking price for ING Life's management rights is beyond the company's budget.
* Export-Import Bank of Korea signed a memorandum of understanding with the Philippines' Department of Finance to offer a US$173 million loan for building container ports in the Southeast Asian country, the Korea Economic Daily reported.
* South Korea-based Woori Bank is in discussions with its union as the lender plans to close up to 30 branches every year, The Korea Times reported, citing an unnamed representative of the union. A bank official, however, said there would not be massive layoffs during the move. Details surrounding the planned restructuring have not been disclosed, the report said.
ASEAN
* Malaysia is in talks to name a new central bank governor, as Governor Muhammad Ibrahim reportedly offered to resign from his post, two unidentified sources told Reuters. Nor Shamsiah Mohd Yunus, former deputy governor of Bank Negara Malaysia, is among those being considered to succeed Muhammad, the sources said.
* Islamic Bank of Thailand appointed Pornlert Lattanan its new chairman, effective Sept. 1, Post Today reported, citing sources from the bank. Pornlert will continue to serve as acting president until the lender names a successor, sources said, adding that the company is opening applications for the post soon.
* Thailand-based Government Savings Bank President and CEO Chatchai Payuhanaveechai said the lender extended a total of 40 billion baht in loans in the four months ended April 30, reaching half of its full-year target, Manager Daily reported.
* Land Bank of the Philippines President and CEO Alex Buenaventura said the state-run lender received a nondisclosure agreement signed by Philippine Stock Exchange Inc., a prerequisite before proceeding with further talks on the acquisition of a stake in Philippine Dealing System Holdings Corp., BusinessWorld reported. The bank expects to sign a share purchase agreement before June 9.
SOUTH ASIA
* Indian bourses National Stock Exchange of India and Bombay Stock Exchange cleared the proposed merger between Bharat Financial Inclusion Ltd. and IndusInd Bank Ltd., following comments received from the Securities and Exchange Board of India. In October 2017, IndusInd Bank agreed to acquire Bharat Financial in an all-stock transaction.
* U.S.-based Ebix Inc. completed the acquisition of CentrumDirect Ltd., a unit of India-based Centrum Capital Ltd. CentrumDirect provides foreign exchange services, distributes financial products and provides investment advice.
* The Indian government is considering lowering its stake in IDBI Bank Ltd. through a preferential share issue to allow multiple investors to take part, rather than a strategic sale to a single entity, The Economic Times reported, citing anonymous government officials. One senior official said they are looking at a number of options amid concerns of inadequate interest in the bank due to its bad loans.
* Bangladesh Bank will impose stern action against local bankers showing negligence in granting loans and carrying out other responsibilities, The Daily Star reported, citing the regulator's instruction to managing directors of domestic lenders. A central bank official said most lenders have not complied with the instruction in March 2017, leading to a surge in default loans.
AUSTRALIA AND NEW ZEALAND
* Australia-based Blue Sky Alternative Investments Ltd. said One Managed Investment Funds Ltd., the entity responsible for the Blue Sky Alliance Fund, is closing the hedge fund and handing all proceeds back to investors, following a review of the asset manager's businesses. The Australian reported that professional service firm KPMG is finalizing an independent review and may recommend divesting Blue Sky's private equity division.
* Australia's Small Business Ombudsman called on small-business lender Prospa to enhance transparency to make sure borrowers understand the real cost of its loans, as the company is about to list on the Australian Securities Exchange with a market capitalization of A$576 million, The Australian Financial Review reported. In May, Prospa reportedly reset the price range for its IPO at between A$3.44 and A$3.83 per share.
* Key executives of Australian private equity firm Archer Capital including Ben Frewin, Peter Gold and Frank Heckes are considering starting their own fund, two months after Archer Capital founder Peter Wiggs announced his retirement and began winding down the firm's operations, The Australian Financial Review's Street Talk blog reported. The three dealmakers are reportedly making early stage preparations for a cash call.
* CBL Insurance Ltd. Managing Director Peter Harris said the Reserve Bank of New Zealand pulled out of a liquidation hearing involving the CBL Corp. Ltd. unit, which was scheduled for the week of June 4, BusinessDesk reported. An RBNZ official said the central bank requested for the interim liquidation to continue until the substantive hearing is scheduled.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Cerberus bids for Abraaj's PE unit; Deutsche Bank to scale back in South Africa
Europe: UK raises £2.5B from RBS stake sale; SocGen settles US probes for $1.3B
Latin America: Bci-TotalBank deal gains final approval; Agibank sets price range for IPO
North America: Legg Mason to pay $64.2M to settle probe; Wells Fargo sues team of ex-advisers
North America Insurance: AmTrust adjourns meeting; Fidelis launches sidecar; Cigna in Asia data breach
R Sio, Sally Wang, Sarun Saelee, Cathy Hwang, Emi White and Aditya Suharmoko contributed to this report.
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