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China overseeing 5 financial firms; SGX, NSE end trading link talks

GREATER CHINA

* China's financial regulator has started supervising five financial holding companies under a pilot program, while detailed supervisory measures are still under discussion, the 21st Century Business Herald reported, citing people close to the country's central bank. The five companies are China Merchants Group Ltd, Ant Financial Services Group, Suning Holdings Group Co, Ltd., Shanghai International Group Co. Ltd. and Beijing State-owned Capital Operation and Management Center.

* Ant Financial Services is said to have finalized the last round of funding before its IPO in one or two years, China Daily reported, citing tech news portal All Weather TMT, which in turn cited a source familiar with the matter. The Alibaba Group Holding Ltd. affiliate is expected to raise US$9 billion, to be settled in June. GIC Pvt. Ltd., U.S. private equity firm Warburg Pincus LLC, Canada Pension Plan Investment Board and Singapore state investment firm Temasek Holdings (Pte.) Ltd. are among the investors, with GIC expected to inject the largest capital into the company.

* China's Anbang Insurance Group Co. Ltd. said it is in the process of looking for a strategic shareholder after the Chinese government took control of the insurer in February, Reuters reported. It added that it has ample cashflow and is operating normally following the takeover. China International Capital Corp. Ltd. and UBS Group AG have reportedly been appointed to advise regulators on plans to unwind Anbang Insurance's investments.

* The China Banking & Insurance Regulatory Commission fined China Development Bank's Jilin, China branch and the branch's two staff for providing guarantees against regulations, the country's Caijing reported. The regulator fined the branch 500,000 yuan and fined the head of the branch and another staff 100,000 yuan and 50,000 yuan, respectively, for taking direct responsibilities for the guarantees.

* China Development Bank plans to issue up to 11 billion yuan of benchmark bonds in two tranches. The lender said it will issue up to 7 billion yuan of five-year bonds with a coupon of 4.69%, and up to 4 billion yuan of seven-year bonds with a coupon of 4.73%. The notes will be issued June 4.

JAPAN AND KOREA

* Japan's SBI Holdings Inc. signed an agreement with Russian sovereign wealth fund Russian Direct Investment Fund to co-invest in fintech and biotechnology companies, Tokyo's The Nikkei reported.

* Tokyo-based Resona Holdings Inc. will set up a ¥100 billion fund in June aimed at supporting companies that promote the United Nation's Sustainable Development Goals, The Nikkan Kogyo Shimbun in Japan reported.

* Korea Credit Guarantee Fund said it will increase its fund supporting the spin off of startup companies by 200 billion won by 2020, the Korea Economic Daily reported.

* South Korea's Financial Supervisory Service is urging Samsung Life Insurance Co. Ltd. to sell its shares in Samsung Electronics Co. Ltd. due to a new bill requiring financial companies to hold not more than a 3% stake in an affiliate company, the country's Money Today reported. The life insurer has not yet given a reply to the regulator with regard to its stake.

ASEAN

* Singapore Exchange Ltd. and National Stock Exchange of India Ltd. ended talks on a cross-border trading link after the bourses failed to reach a consensus on the timing and regulatory guidelines, among others, for the project, Bloomberg News reported, citing people familiar with the matter. Disagreements between the two exchanges escalated after NSE filed for a court injunction to stop SGX from launching derivatives based on Indian stocks in June.

* The Monetary Authority of Singapore will require investors to report their short positions and short sell orders in securities listed on the Singapore Exchange through the regulator's online portal. The new rule will take effect Oct. 1, and aims to improve transparency on short selling activities.

* Five insurers in Thailand — Dhipaya Insurance PCL, Bangkok Insurance PCL, MSIG Insurance (Thailand) PCL, Tokio Marine Insurance (Thailand) PCL and Thaivivat Insurance PCL — will launch an insurance product based on the Insbee peer-to-peer car insurance platform that rewards people for responsible driving in July, the country's Post Today reported. Policyholders who can retain a no-claim record for one year will receive a refund of up to 30%.

* Allianz Malaysia Bhd.'s net profit for the first quarter ended March 31 rose to 87.2 million ringgit from 67.2 million ringgit in the prior-year period. The increase was partly due to higher contributions from the general and life insurance segments.

SOUTH ASIA

* The Bangladesh government plans to establish a banking commission to probe the cause of the current vulnerability in the financial sector, The Daily Star in the country reported, citing Finance Minister AMA Muhith. The minister's comments come at a time when the country's banking sector is suffering from loan scams and a lack of good governance, the publication noted.

* The Bangladesh central bank is in the process of granting licenses to three new commercial banks, namely Bengal Bank, People's Bank and Community Bank Bangladesh, The Daily Star reported. The regulator completed the primary process for Bengal Bank and People's Bank's license applications, while Community Bank Bangladesh is under consideration.

* United Bank of India reported a net loss of 2.61 billion rupees for the fourth quarter ended March 31, compare with a net profit of 735.6 million rupees in the prior-year period. The bank's provision for nonperforming assets rose to 13.33 billion rupees from 7.51 billion rupees in the prior-year period.

* Bank of India's net loss for the fourth quarter ended March 31 widened year over year to 39.69 billion rupees from a loss of 10.46 billion rupees in the prior-year quarter, partly due to higher provisions for bad loans. Loss per share was 32.65 rupees, compared with a loss per share of 9.91 rupees in the prior-year quarter.

AUSTRALIA AND NEW ZEALAND

* Australia's financial services royal commission, a year-long government inquiry into the scandal-ridden financial sector, will question Commonwealth Bank of Australia executives over how the bank treated Bankwest business customers after it acquired the lender in 2008, the Australian Associated Press reported. Two former Bankwest customers have given evidence about how CBA changed loan terms following the acquisition, the report said.

* Germany-based Deutsche Bank AG laid off Australian director and derivatives trading head Thomas Ciszewski, and three others in the trading division, as part of a global push to reduce staff, The Australian Financial Review reported, citing unnamed sources.

* Commonwealth Bank of Australia, Westpac Banking Corp. and National Australia Bank Ltd. launched new mobile payment platform, called Beem It, to allow instant payment for Australians and small business units, Verdict reported. The new app will also allow users to request payment or split a bill.

* Commonwealth Bank of Australia is expected to announce the appointment of senior banker Fergus Blackstock as head of term funding, The Australian reported. Blackstock comes from UBS where he was head of debt capital markets for Australasia.

IN OTHER PARTS OF THE WORLD

Middle East & Africa: Kenyan watchdog probes central bank officials; S&P affirms South Africa

Europe: Italy in fresh turmoil; Swiss Re ends investment talks with SoftBank

Latin America: Colombia election set for runoff; Banrisul files for card payment unit IPO

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

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