GREATER CHINA
* Tom Atkinson, head of enforcement at Hong Kong's Securities and Futures Commission, said some IPO sponsors in the city have been "extremely reckless," and the regulator is planning to impose a range of penalties, including large monetary fines, on such companies, Bloomberg News reported. The authority is investigating 15 companies and will disclose more results in the next six months, Atkinson said. This comes after the SFC fined and suspended a UBS Group AG unit in relation to its role as sponsor in an offering listed on the local bourse.
* The China Securities Regulatory Commission imposed a record fine of 5.5 billion yuan on Bei Ba Dao Group for manipulating stock prices, Reuters reported, citing the official Shanghai Securities News, which in turn cited a regulatory statement. The group was said to have illegally made a profit of 945 million yuan by manipulating shares in newly listed companies, such as Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd. and Jiangsu Jiangyin Rural Commercial Bank Co. Ltd., the report said.
* Officials at the People's Bank of China, as well as the country's banking, insurance and securities watchdogs, are said to be stepping up actions against misconduct, amid concerns they may get in trouble for not acting fast enough or being strict enough on financial companies, Reuters reported, citing "multiple sources with direct knowledge of the situation." Senior industry sources, however, said some of the fresh regulations, including the central bank's rules restricting asset management, are unnecessarily harsh and could impede development of the economic and financial system.
* Fitch Ratings said the proposed merger of the China Banking Regulatory Commission and the China Insurance Regulatory Commission may strengthen regulatory oversight and help curb contagion risks in the country's financial system, which would be positive for the system's long-term stability. The rating agency added that the overall result must be that authorities have more control over leverage and threats to financial stability over time.
* Taiwan's Financial Supervisory Commission plans to revise six financial laws and real estate securitization regulations, including laws on banks, financial holding companies and insurance, United Daily reported, citing Chairman Wellington Koo. The move is expected to be the largest financial regulation overhaul in the island's history, the report said. Koo added that the most difficult revision is on the insurance law.
JAPAN AND KOREA
* Japanese online services and e-commerce giant Rakuten Inc. said it completed its tender offer for 16,773,720 shares of nonlife insurer Asahi Fire & Marine Insurance Co. Ltd. The company made a tender offer of ¥2,664 per share of common stock and ¥10,656 per share of Series A class stock of the insurer.
* Japan's major financial institutions are exploring business opportunities in China as the country allows more foreign capital to access its market, The Nikkei reported. Sumitomo Mitsui Banking Corp. invested a few hundred million yen into asset-backed securities in China, while Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. issued yuan-denominated bonds in the country. Japanese company Nomura Holdings Inc. is also considering rolling out securities business for wealthy clients in China.
* Hirohisa Uehara, incoming president of Japan-based T&D Holdings Inc., said in an interview with The Nikkei that the company will aim to increase profit across the group, and is considering converting its affiliate Pet & Family Small-amount Short-term Insurance Co. into a general insurer, the publication reported.
* The total balance of South Korea's mortgage loans rose to 573.2 trillion won in February, an increase of 1.8 trillion won from the previous month, despite the government's enforcement of stricter regulations on the real estate market, The Chosun Ilbo reported, citing data from the Bank of Korea.
ASEAN
* The Thai government plans to collect a 7% value-added tax on trading in digital assets in addition to a planned 15% withholding tax on capital gains, Manager Daily reported, citing Finance Minister Apisak Tantivorawong. Retail investors, however, will be exempted from the additional VAT.
* Indonesian state-owned lender PT Bank Rakyat Indonesia (Persero) Tbk said it is fully responsible for the financial losses of dozens of its customers due to alleged skimming, The Jakarta Post reported, citing a report from Bisnis Indonesia. Consumer Director Handayani said the bank was conducting an internal probe following reports of unknown fund withdrawals from accounts in the bank's branches in Kediri, East Java, Indonesia. The lender has since reported the incident to the police, and rolled out preventive measures to secure clients' funds.
* Singapore-based Oversea-Chinese Banking Corp. Ltd. became the first local lender to set up an artificial intelligence unit, called AI Lab@TOV, to strategically develop in-house AI capabilities. The new unit will get an initial investment of S$10 million from the bank over three years, and will be headed by Ken Wong.
* The Philippines' Insurance Commission shuttered the operations of five nonlife insurers for failing to comply with the minimum net worth requirement set by the country's insurance code at 550 million pesos, The Philippine Star reported, citing a regulatory statement. Commissioner Dennis Funa said the five insurers under conservatorship are First Integrated Bonding and Insurance Co. Inc., Investors Assurance Corp., Metropolitan Insurance Co. Inc., Plaridel Surety and Insurance Co. and Premier Insurance and Surety Corp.
SOUTH ASIA
* India's ICICI Bank Ltd. set the price range for unit ICICI Securities Ltd.'s planned IPO at 519 to 520 rupees per share. The offering comprises 77,249,508 shares of ICICI Securities, with a proposed reservation of up to 3,862,475 shares for both individuals and Hindu Undivided Family shareholders of the parent bank. The IPO will kick off March 22 and close March 26.
* Reserve Bank of India Governor Urjit Patel called for reforms that would give the central bank more power over state-run lenders following the discovery of a US$2 billion fraud case at Punjab National Bank, Reuters reported. Patel said the regulator have "very limited authority" over public banks, including its inability to remove directors, change management, force a merger or start liquidation. Patel also noted that India's dual-regulation system, which gives the government supervision over state-run banks, could "lead to tremors such as the most recent fraud."
* Indian lenders sought clarification from the central bank on alternative instruments to replace letters of undertaking, or LOUs, after the regulator banned banks from issuing such guarantees after it was discovered that the instruments were used in the fraud case at Punjab National Bank, Mint reported, citing two unnamed officials. Banks issue LOUs to fund companies importing goods to India.
* The Reserve Bank of India is expected to cut its key policy rates by 25 basis points in August, which would cause lending rate cuts and in turn support growth, Press Trust of India reported, citing a research note from Bank of America Merrill Lynch. BofA Merrill Lynch said the country's inflation rate in March will likely reach 4.2%, which is well within the central bank's 2% to 6% mandate.
AUSTRALIA AND NEW ZEALAND
* National Australia Bank Ltd. told the banking royal commission, a judicial inquiry into the country's scandal-plagued financial industry, that its own remuneration structure encouraged bankers to participate in fraudulent lending practices to boost their incomes, Reuters reported. The inquiry on March 14 disclosed that A$630,000 was paid to "introducers," or nonbank employees who collected commissions for customer referral, between 2013 and 2016. Introducers were found to have collected commissions by forging loan documents and inappropriately using customers' signatures, which in turn resulted in bank staff earning bigger bonuses.
* The Australian Securities and Investments Commission suspended the Australian financial services license of Corpac Partners Pty. Ltd. over its failure to lodge financial statements and auditor's reports over a four-year period. The suspension took effect Feb. 28 and will end Aug. 28. The regulator noted that failure to lodge the required documents within the period may result in the cancellation of the license, which Corpac Partners has held since July 2004.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Bahrain exits EU tax haven blacklist; Angola issuing bonds to tackle bad debts
Europe: Pru to demerge UK, European ops; EU banks face new bad loan provision rules
Latin America: Bank of China gets approval in Chile; Bradesco mulls closing 200 branches
North America: JPMorgan invests in London-based fintech startup; CIC divests Blackstone stake
North America Insurance: Admin costs among drivers of high US healthcare spending; Centene invests in PBM
Janna Estares, Sally Wang, Sarun Saelee, Cathy Hwang and Emi White contributed to this report.
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