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China scraps cap for overseas investors; ASIC appeals Westpac ruling

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China scraps cap for overseas investors; ASIC appeals Westpac ruling

GREATER CHINA

* China will scrap the limit on overseas funds buying domestic stocks and bonds as the world's second-largest economy continues opening its financial markets to foreign investors. Under the proposal, foreign institutional investors will no longer be required to apply for quotas before purchasing stocks, bonds and other financial instruments listed on the country's stock exchanges in Shanghai and Shenzhen, the State Administration of Foreign Exchange said.

* The Securities and Futures Commission of Hong Kong fined HSBC Holdings PLC HK$2.1 million for failing to record 5,830 client order instructions via phone calls in its private banking division. The commission said the lapse in fulfilling the regulatory requirement occurred between April 8, 2017, and Jan. 31, 2018, and was self-reported by HSBC.

* Moody's said potential spillover risks presented by troubled regional banks in China would be limited as long as the government spot the problem and provide support in a timely manner. According to the rating agency, the rapid growth of regional lenders and recent episodes of financial distress in the sector could result in tighter liquidity for companies that heavily rely on them.

JAPAN AND KOREA

* The board of Hiroshima Bank Ltd. approved a plan to transform the bank into a holding company by October 2020, pending shareholder approval and regulatory clearance.

* Korea Development Bank Chairman and CEO Lee Dong-gull said in a press briefing that he plans to discuss a potential merger of the bank and Export-Import Bank of Korea with the government, The Korea Herald reported. Lee said consolidating the two policy banks would result in increased capital and manpower to focus on key sectors such as investments in information technology.

* Woori Financial Group Inc. said in filings that Woori Card Co. Ltd. and Woori Investment Bank Co. Ltd. became wholly owned units on Sept. 10 through share swap transactions.

* South Korea's National Tax Service initiated a three-month inspection into Korea Investment & Securities Co. Ltd., The Korea Times reported. The tax audit comes amid allegations that an employee took part in questionable investment practices relating to a private equity fund using information provided by Justice Minister Cho Kuk. Officials from the tax agency and the securities firm denied that the probe is connected with the allegations, noting that it is part of a routine audit done on large companies.

ASEAN

* Kasikorn Research Center expects Thailand's life assurance industry to see a 3% year-over-year decline in total premiums in 2019 — its first decline in a decade, Krungthep Turakij reported. In the first half, total premiums fell 6.1% from the prior-year period.

* Indonesia's National Sharia Finance Committee is preparing a roadmap for the sharia financial technology industry, which is expected to be completed in 2020, Bisnis Indonesia reported.

* Malayan Banking Bhd. is looking to enhance its international business by expanding its franchise network in select locations in Asia, particularly Greater China, the Philippines and Cambodia, the Philippine Daily Inquirer reported, citing Michael Foong, chief strategy officer and CEO for the lender's international business.

SOUTH ASIA

* One97 Communications Ltd.-owned financial technology unit Paytm Mobile Solutions Pvt. Ltd. is considering investing in private sector lender Yes Bank Ltd., Indo-Asian News Service reported, citing an unnamed source. The two entities are in the preliminary stage of discussions for a potential deal that must comply with regulatory guidelines, as One97 Communications currently holds a stake in another payments bank.

* Goldman Sachs Group Inc. agreed to cooperate with Indian law enforcement officials to initiate criminal charges against a senior executive in connection with fraudulent transactions, Indo-Asian News Service reported. The company terminated Ashwani Jhunjunwala from his role as vice president of foreign exchange and equity settlements in India for allegedly transferring 380 million rupees to his personal account.

* Bank of Baroda and State Bank of India are planning to hire 15 sector specialists and 477 information technology candidates, respectively, Mint reported, citing two separate advertisements from the public sector lenders. Of the 477 roles, SBI is looking to hire 248 for a number of general positions that range from developers to system or server administrators.

AUSTRALIA AND NEW ZEALAND

* The Australian Securities and Investments Commission is appealing a landmark ruling by Australia's Federal Court in favor of Westpac Banking Corp., The Australian Financial Review reported. Judge Nye Perram ruled that the bank did not engage in irresponsible lending, which the regulator disputes, accusing the lender of violating relevant guidelines 261,987 times.

* An Enstar Group Ltd. unit reached an agreement with Munich Re Co. subsidiaries to acquire some portfolios from their Australian branches of Great Lakes Insurance and HSB Engineering Insurance. As a part of the deal, Enstar's subsidiary will receive total assets of about A$228.2 million for assuming the associated net insurance reserves.

* Banks in New Zealand are offering bonds with locked-in low interest rates, as part of efforts to attract potential home-buyers with attractive mortgage rates, The New Zealand Herald reported, citing a survey by KPMG.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Kenya's Equity targets Congo lender; Standard Bank Namibia takes Mobipay stake

Europe: Barclays sees up to £1.6B PPI hit; Dexia H1 loss widens; Portugal fines banks

Latin America: Banco Pan, Banrisul launch share offerings

North America: Wells Fargo, Citi feel the pinch of low rates; 2 New York credit unions to merge

Global Insurance: Commercial insurance prices; Root's valuation; Fidelity-Stewart deal off

Janna Estares, Emily Lai, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.

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