* China-based Xiamen Bank Co. Ltd. posted a net profit of 686 million yuan in the first half, while its nonperforming loan ratio stood at 1.38%, Shanghai Securities News reported. The lender intends to issue no more than 25% of its total shares and use proceeds to replenish capital.
* An investment company under China Construction Bank Corp. obtained a license to operate as a private equity fund manager with a registered capital of 200 million yuan, China Fund reported. Chinese authorities are introducing policies to support major banks to set up private placement funds to facilitate debt-to-equity swaps.
* China-based Hua Xia Bank Co. Ltd.'s shareholders passed a resolution to raise 29.24 billion yuan in a private placement of shares, Shanghai Securities Newspaper reported.
* Hong Kong's Securities Futures and Commission vowed to take action against those involved in opening "fake" stockbroker trading accounts to hide instances of misconduct, the South China Morning Post reported, citing Julia Leung Fung-yee, deputy chief executive of the commission. Leung said the regulator discovered the "worrying trend" of brokers helping clients make use of the accounts to allow third parties to be nominated to act on behalf of companies.
* Taiwan's 15 listed financial holding companies saw combined after-tax net profit of NT$14.14 billion in September, down 45.46% from the previous month, the island's Central News Agency reported. The drop was due to the the conclusion of life insurers' cash dividend incomes, turbulence in the capital market and the appreciation of the local currency.
JAPAN AND KOREA
* Tokyo Stock Exchange Inc. said about 40 brokerages were affected by a technical failure in one of the channels connecting them to the bourse's stock trading system, adding that it is not considering compensating the companies since they were able to execute trades by switching to working routes, Reuters reported. The exchange, which has yet to identify the number of transactions impacted, said regular trade will resume Oct. 10.
* Japan Post Bank Co. Ltd. suspended its mortgage lending business partnership with Suruga Bank Ltd. due to the regional bank's real estate loan scandal, The Asahi Shimbun reported.
* Japanese credit card firm JCB Co. Ltd. partnered with IDEMIA France SAS, a France-based company that develops and provides augmented identity services, to roll out Google LLC's digital payment platform in Japan. Local users can add their JCB cards in the Google Pay app on their payment-enabled phones.
* The Seoul Eastern District Court will decide Oct. 10 whether to issue an arrest warrant against Shinhan Financial Group Co. Ltd. Chairman Cho Yong-byoung, who faces employment-related corruption allegations, Money Today reported. The legal case is expected to affect a regulatory review of Shinhan Financial's acquisition of Orange Life Insurance Co. Ltd.
* Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, is set to gain about 1 trillion dong from selling 53.4 million shares in Military Commercial Joint Stock Bank and 45.37 million shares in Vietnam Export Import Commercial Joint Stock Bank, or Eximbank, Viet Nam News reported. The divestments bring Vietcombank's stake in Military Bank to 4.5% from 6.07%, and in Eximbank to 4.5% from 8.19%.
* Indonesia-based PT Bank Central Asia Tbk President Director Jahja Setiaatmadja said negotiations are underway to acquire a small domestic bank in 2018, Bisnis Indonesia reported.
* Indonesian lender PT Bank Pembangunan Daerah Banten Tbk will conduct a rights issue to raise 2.9 trillion rupiah of fresh funds, Bisnis Indonesia reported.
* Indonesia's PT Bank OCBC NISP Tbk will receive 2 trillion rupiah from the International Finance Corp. following an issuance of komodo bonds. The funds are earmarked for green and environmental projects, Bisnis Indonesia reported.
* Myanmar-based Yoma Bank Ltd. infused a second tranche of 6.8 billion kyat in BRAC Myanmar Microfinance Co. Ltd.'s follow-on financing round, DealStreetAsia reported, citing an announcement. BRAC Myanmar Microfinance will use the funds to expand its services in the country.
* State Bank of India will acquire cash-strapped nonbanking financing companies' assets amounting to 450 billion rupees, Press Trust of India reported. Indian Economic Affairs Secretary Subhash Chandra Garg said in a tweet that the bank's decision to buy assets would ease the companies' liquidity woes to a great extent.
* WhatsApp Inc. set up a system to comply with the Reserve Bank of India's directive to store payment-related data locally, Reuters reported, citing an emailed statement. The move comes amid parent Facebook Inc.'s plan to gain a foothold in the country.
* Arundhati Bhattacharya, former chairperson of State Bank of India, was appointed an adviser of India-based ChrysCapital Advisors LLP, as confirmed by a spokesperson for the private equity firm, The Economic Times reported. Bhattacharya will advise on ChrysCapital Advisors' strategy and investments and work with Managing Partner Kunal Shroff and other partners.
* Bangladesh Bank published new risk management guidelines for lenders amid rising nonperforming loans and growing risk in the banking sector, the country's New Age reported. The circular released by the central bank's off-sight supervision department requires banks to prepare a comprehensive risk management guideline, among other things.
AUSTRALIA AND NEW ZEALAND
* The landmark cartel case against Australia & New Zealand Banking Group Ltd., Citigroup Inc., Deutsche Bank AG and six senior bankers in relation to a share placement by ANZ in 2015 was adjourned until Feb. 5, 2019, with the prosecution ordered to file the full details of their case by Dec. 11, Reuters reported. The firms could face penalties of up to A$10 million or triple the benefit of the conduct, while the individuals charged could face 10 years in jail if convicted, the report said.
* Australia-based Perpetual Equity Investment Co. Ltd. raised a total of about A$101.2 million in funds under the entitlement, top up facility, shortfall and general offers. The company said the allotment of new shares under the shortfall and general offers was conducted Oct. 9.
* The Australian Banking Association seeks to stop the practice of charging deceased customers and fees-for-no-service, which would address the issues to emerge from the royal commission, The Australian Financial Review reported, citing Anna Bligh, chief executive of the association. The group will also outline plans to ban commission payments linked to legacy financial advice products with a series of changes to the banking code of practice to be announced Oct. 10.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Bank of Israel holds rate; Abraaj's stake in fund to be divided among investors
Europe: Aviva CEO Wilson stepping down; Wirecard eyes more than €10B revenues by 2025
Latin America: Chinese firm invests in Nubank; IMF cuts growth forecast for Latin America
North America: Goldman cuts Marcus' 2019 lending target; Hedge fund Tourbillion to shut down
Global Insurance: Michael menaces Florida panhandle; Aviva boss steps down; Vivat could be sold
R Sio, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.
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