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China to scrap foreign ownership caps in 2020; Australia to probe big 4 banks

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China to scrap foreign ownership caps in 2020; Australia to probe big 4 banks

GREATER CHINA

* The China Securities Regulatory Commission said it will remove foreign ownership caps on fund management companies starting April 1, 2020, Xinhua News Agency reported. Further, foreign ownership limits on brokerages and futures companies will be removed from Dec. 1, 2020, and Jan. 1, 2020, respectively.

* The China Banking and Insurance Regulatory Commission penalized former executives of Shanghai Pudong Development Bank Co. Ltd. and warned those of China Guangfa Bank Co. Ltd. over irregularities in extending loans and risk management. Among those fined are Ji Xiaohui, former chairman of Shanghai Pudong Development Bank, and Zhu Yuchen, former president of the bank. The regulator issued administrative warnings to Dong Jianyue, former chairman of China Guangfa Bank, and and Li Mingxian, former president of the bank, over lapses in risk management between 2012 and 2016.

* The Macau Monetary Authority is preparing to set up a yuan-denominated security market, and has entrusted international consulting companies to conduct a feasibility study on the plan, according to a notice on the regulator's website.

JAPAN AND KOREA

* Mitsubishi UFJ Financial Group Inc. will acquire the fund administration operations of Luxembourg-based Maitland in the Americas for an estimated ¥3.5 billion, Tokyo's The Nikkei reported. The deal will increase MUFG subsidiary Mitsubishi UFJ Trust & Banking Corp.'s assets under management by US$26.3 billion to US$604 billion. The targeted business offers services for hedge funds and private equity funds such as estimating asset values and writing reports.

* Seoul-based KB Kookmin Bank is preparing to launch its Liiv Bank Pay payment service in Japan beginning November, BusinessKorea reported. It has revised its terms of service to make the payment service available outside of its home country and is also planning to rebrand the payment service to Liiv Pay by the end of October. The bank is cooperating with Danal Co. Ltd. as part of the plan.

* South Korea's Financial Supervisory Service conducted digital forensics to recover deleted documents from KEB Hana Bank's systems, The Korea Times reported. The lender was said to have deleted the data around the time the regulator said it would look into the alleged misselling of derivatives-linked funds. The regulator could take actions against the bank if the deletion was found to have disrupted its inspection, the publication added, quoting a FSS official. KEB Hana said it deleted the "data for internal review."

* South Korea's Financial Supervisory Service said the regulator will conduct a series of onsite consulting sessions with insurers starting Oct. 14 to check on how insurance companies are preparing for the new capital adequacy regulation, also known as the Korean Insurance Capital Standard, and to answer questions, the Maeil Business Newspaper reported.

* Investors are expressing growing concerns after South Korea's biggest hedge fund Lime Asset Management Co. declared that it has ceased the redemption of its funds worth 620 billion won due to liquidity issues, Yonhap News Agency reported, citing the industry insiders. The repayment on the investment has been deferred.

ASEAN

* Thailand-based Kasikornbank PCL appointed Kattiya Indaravijaya CEO, Krungthep Turakij reported. She succeeds Banthoon Lamsam who has been named the bank's nonexecutive chairman. The appointments will come into effect after the bank's 2020 annual general meeting.

* Thailand's TISCO Financial Group PCL said net profit for the third quarter rose 3.5% year over year to 1.88 billion baht, Manager Daily reported. The bank's net profit for the nine months ended Sept. 30 increased 2.2% year over year to 5.41 billion baht amid higher fee income from its bancassurance business.

* Government Savings Bank President and CEO Chatchai Payuhanaveechai said the state-owned Thai bank entered into a network-sharing agreement with Industrial & Commercial Bank of China (Thai) PCL, Bangkok Post reported. Under the partnership, Government Savings Bank will offer Alipay, WeChat and UnionPay services to Chinese tourists and investors, while ICBC Thai will be able to use the bank's network.

* Indonesian state lender PT Bank Negara Indonesia (Persero) Tbk is working to stabilize its stock price, which has been volatile throughout 2019, by optimizing performance and collaborating with global analysts, Bisnis Indonesia reported, citing international treasury director, Bob Tyasika Ananta.

SOUTH ASIA

* India's Bank of Baroda entered into an agreement with BNP Paribas Asset Management Asia Ltd. to merge Baroda Asset Management India Ltd. with BNP Paribas Asset Management India Private Ltd. The state-owned lender also agreed to merge Baroda Trustee India Private Ltd. with BNP Paribas Trustee India Private Ltd. Both mergers will be all-stock transactions.

* Credit Saison Co. Ltd. unit Credit Saison India, which operates under the registered name of Kisetsu Saison Finance India, has received a nonbanking financial company license from the Reserve Bank of India, The Economic Times reported. The Indian unit of the Japanese lender has received a US$30 million investment from its parent.

* The Reserve Bank of India instructed the country's cooperative banks to replace their current email-based reporting system with its Central Information System for Banking Infrastructure, The Economic Times reported, citing a central bank circular. The co-ops have a month until they inform regulators regarding their compliance.

AUSTRALIA AND NEW ZEALAND

* Treasurer of Australia Josh Frydenberg instructed the Australian Competition and Consumer Commission to investigate interest rate pricing arrangements on mortgages by the country's big four banks, The Australian reported. The government alleges that the lenders took additional profits of A$570 million in 2019 after they initially refused to pass on policy rate cuts to their clients.

* The Australian government approved the creation of a disciplinary body to regulate financial advisers, following recommendations by the financial services royal commission. The new body is expected to be established in 2021.

* The AMP Financial Planners Association has asked AMP Ltd. to extend an Oct. 31 deadline for financial advisers to decide whether they would stay on at the firm, merge or exit the company, The Australian reported, citing Neil Macdonald, head of the association.

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

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