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JPMorgan credit index slashes China weight; ICBC chairman to retire

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University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

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JPMorgan credit index slashes China weight; ICBC chairman to retire

* TheJACI Diversified, a new credit index designed by JPMorgan Chase & Co. has slashed China's weight in halfto 20.5% from the current 40.2% to cut concentration risk, Reuters reported.

* TheAsian Development Bankhas called for countries in Asia to build greater resilience into their nationalroad maps for countering factors that may destabilize their economies, The Philippine Star reported.

* isappealing a HK$605 million fine imposed by Hong Kong's securities regulator foralleged misconduct in selling products to private banking clients, The Wall Street Journal .

* JPMorganChase became the first investment bank to be affected by stricter IPO rules in HongKong introduced in 2014 after a listing application sponsored by the bank was returned,Reuters reported.

GREATER CHINA

* JiangJianqing, chairman of Industrial &Commercial Bank of China Ltd., is set to retire, China Business News said. Jiang, 63, has led ICBC since 2000.

* Followingan unprecedented number of defaults in 2016, numerous high-yield bond issuers aredue to repay debts in China, with the high-yield bond market estimated at US$8 trillion,Reuters reported.Data from the news agency show that 28 bonds yielding more than 10% have couponpayments due in May, with around 17 billion yuan of capital. In June, interest forcoupon payments on another 8 billion yuan of similarly yielding bonds will be duefor payment.

* TheChina Insurance Regulatory Commission warned that mutual help programs on accidentand diseases some internet companies are offering are not insurance products, theChina Securities Journal reported.The regulator also asked insurers to stop cooperating with internet companies thatare not qualified to conduct insurance business.

* HuWeijun, chief economist for Greater China at Macquarie Securities Group, said thatwhile the probability of a debt crisis in China is very low, the country's enterprisehigh debt levels are still at risk, Caixinreported. Hu notedthat most enterprise debts in China are by state-owned enterprises, with small chancesof a large-scale default among them.

* Twenty-twofinancial institutions have launched mobile credit card businesses in Taiwan, and16 lenders have launched mobile financial card businesses, with a total mobile turnoverof nearly NT$870 million as of the end of March, Taiwan's Central News Agency reported.

JAPAN AND KOREA

* said it willdiscontinue buying newly issued Japanese government bonds due to the possibilityof diminishing investment profit after the Bank of Japan implemented its negativeinterest rate policy, Tokyo's The Nikkeireported.

* JapanesePrime Minister Shinzo Abe said the government should expedite fiscal stimulus measuresbefore the country plunges into an economic crisis, The Sankei Shimbun reported.

* LeeJu-yeol, chairman of the Bank of Korea, said funding the country's state-owned bankswith no securities-backed investment financing would not align with the centralbank's risk-minimizing principles, the KoreaEconomic Daily reported.

* SouthKorea's Hanjin Heavy Industries & Construction Holdings Co. Ltd. will sign anagreement for the operative normalization of the company with its creditor banksMay 13, following its request for joint supervision by the creditors in January,The Financial News reported.

* SouthKorea's "credit loan 19" program, an initiative to inform and consultalternative options for debtors who are able to repay loans at least two monthsprior to the maturity date, is set to start in June, the Maeil Business Newspaper reported.

ASEAN

* KASIKORNResearch believes the Bank of Thailand's monetary policy committee will keep thepolicy rate unchanged at 1.5% at its May 11 meeting, Krungthep Turakij reported. Manyeconomic stimulus measures implemented by the Thai government and low cost of financeswill support the decision, the research center said.

* KASIKORNSecurities said factors that should be monitored for stock market movement duringthe week of May 9 include the meeting of the Thai monetary policy committee, businessresults of Thai-listed companies, the Morgan Stanley Capital International ThailandIndex and key economic figures in the U.S. and China, Krungthep Turakij reported.

* Post Today reported that is seekingapproval from the Ministry of Finance for its plans to support startups in Thailand.The bank is keen to provide local startups with business and financial solutions.

* IndonesianFinance Minister Bambang Brodjonegoro said the Asian Development Bank should continueefforts to improve procedures for its lending and procurement rules, The Jakarta Post reported.Indonesia is the ADB's third-biggest loan recipient after India and Pakistan, withUS$2.92 billion in outstanding debt as of 2015.

* Malaysiais not planning to revise its GDP or fiscal deficit targets despite global crudeoil prices stabilizing at around US$45 a barrel and above the US$35 mark set inits 2016 budget, The Star reported,citing Treasury Secretary-General Mohd Irwan Serigar Abdullah. He said the governmentis watching the oil price movement closely.

* TheBangko Sentral ng Pilipinas said consumer loans from large banks crossed the 1 trillion-pesomark in 2015 with a 17.5% increase from the previous year, The Philippine Star reported.

SOUTH ASIA

* TheReserve Bank of India has proposed to grant universal banking licenses to both individualsand some businesses, Business Standardreported.However, the criteria for approval will rule out many large business groups fromacquiring the license.

* has selected Citigroup Inc.,JPMorgan Chase, Morgan Stanleyand Kotak Mahindra Bank Ltd.to work on the listing of HDFC StandardLife Insurance Co. Ltd.'s IPO, which is expected to raise up to US$400million, Bloomberg News reported,citing "people with knowledge of the matter."

* announced thelaunch of its mobile-based payment solution called mVisa, which will allow customersto make payments using their smartphones, the Press Trust of India reported.

AUSTRALIA AND NEW ZEALAND

* TheAustralian Prudential Regulation Authority has called the country's private healthinsurance sector "prudentially sound," The Australian reported,citing a report sent to the parliament. APRA also suggested that insurers remainresponsive to an ever-changing environment.

* CEOAndrew Thorburn said recent cuts will lead to record-low interest rates and shouldincrease consumer spending, but are unlikely to reignite a debt-fueled economicboom, The Sydney Morning Herald reported.

IN OTHER PARTS OF THE WORLD

* CoStarEurope Ltd., the U.K. subsidiary of CoStarGroup Inc., has acquired100% of the equity of Thomas Daily, a German commercial real estate informationbusiness.

* Afterbattling with poor operating performance for some time, Banco Gerador SA has reached a deal to be acquired by Agiplan Financeira after two yearsof negotiations, Valor Econômico reported.

* BancoCentral de la República Argentina adoptedmeasures to elevate the monthly minimum of U.S. dollar currency purchasesto $5 million from $2 million, the bank said in a statement.

* 's boardappointed Robert Stanleyas the company's president May 4, according to a regulatory filing submitted May5.

Sally Wang, Sarun Saelee, CathyHwang, Emi White and Aditya Suharmoko contributed to this report.

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