GREATER CHINA
* The People's Bank of China and the China Banking Regulatory Commission issued new rules to crack down on the growth of the online microlending sector, Reuters reported, citing an official notice. The new rules include requiring all organizations and individuals to obtain a license to conduct lending business, as well as prohibiting lending to people with no income.
* China's banking regulator is planning to introduce rules to clamp down on the use of shell companies and proxies to hide the true ownership of Chinese banks and other companies, the Financial Times reported, citing a China Banking Regulatory Commission spokesman at a press briefing. The move comes amid heightened suspicions that some Chinese government officials or their families have used proxies to hide their shareholdings in large companies.
* China's State Administration of Foreign Exchange imposed a penalty of 7.75 million yuan on Shanghai Haitong Securities Asset Management Co. Ltd. for transferring US$16.28 million worth of Qualified Domestic Institutional Investor quota without regulatory approval between 2015 and June 2016, Caixin reported.
* Xiao Yuanqi, head of the prudential regulation bureau at the China Banking Regulatory Commission, said the regulator imposed penalties aggregating to 592 million yuan on the country's 1,486 financial institutions in the ten months ended October, Securities Times reported. The commission also banned 49 staff from working in the banking industry for a lifetime during that time.
* Wind Information Co. Ltd. said the liabilities of China's banking sector due in December surpassed 3.8 trillion yuan, Phoenix Finance reported. Market liquidity in the country is becoming tight as lenders face the macro prudential assessment test at the end of 2017.
JAPAN AND KOREA
* Japan-based Nippon Life Insurance Co. agreed to acquire a 24.75% minority stake in TCW Group Inc., a U.S.-based global asset management company, from Carlyle Group LP for an undisclosed sum. The Nikkei earlier reported that a potential transaction was being discussed by the parties.
* Aichi Bank Ltd. said Bank of Tokyo-Mitsubishi UFJ Ltd., which holds an approximately 7% stake in the lender, will sell almost all of its shares, or up to 749,800 shares, The Nikkei reported.
* Kyushu Financial Group Inc. will launch the operation of its new securities unit, named Kyushu FG Securities, on Jan. 22, 2018, with three branches in Kumamoto, Kagoshima and Miyazaki in Japan, The Mainichi Shimbun reported.
* Mitsubishi UFJ Capital Co. Ltd. invested US$5 million in a fund managed by Israel's Viola Ventures, the Nikkan Kogyo Shimbun reported.
* South Korea's financial regulator plans to illegalize trading in digital currencies in principle, and will allow digital currency exchanges only on a case-by-case basis on the condition that they comply with consumer protection requirements, The Dong-a Ilbo reported, citing Kim Yong-beom, vice chairman of the Financial Services Commission.
* KB Kookmin Bank, Shinhan Bank Co. Ltd. and Woori Bank will participate in a blockchain technology development promoted by R3 CEV LLC with an international banking consortium, the Maeil Business Newspaper reported. KEB Hana Bank will also participate as an adviser.
ASEAN
* Thailand's Securities and Exchange Commission is considering reducing the number of applicants allowed to apply for a securities business license, as it aims to cut regulatory costs as part of a reform process, the Bangkok Post reported. Currently, there are a total of 250 securities licenses in the country, the regulator noted.
* Thailand's Government Savings Bank plans to double the amount of loans it issues to small and medium-sized enterprises in 2018 to 40 billion baht from about 20 billion baht in 2017, Post Today reported.
* Indonesian insurer PT Adira Dinamika Multi Finance Tbk is expanding its business with the development of marine cargo insurance, Bisnis Indonesia reported.
SOUTH ASIA
* All 15 economists surveyed by Mint expect the Reserve Bank of India to hold the key repo rate steady at 6% when it announces its decision on Dec. 6, the publication reported. The central bank is expected to hold the rates for a prolonged period because of rising inflation.
* Private equity firm General Atlantic acquired an additional 1.5% stake, or nearly 2.5 million shares, in India's PNB Housing Finance Ltd. for about 3.36 billion Indian rupees, Mint reported, citing bourse data. This brings General Atlantic's stake in the housing finance company up to 8.36% from 6.86%.
* India's Infosys Ltd. named Salil Parekh as its CEO and managing director, effective Jan. 2, 2018. Parekh was previously a group executive board member at France-based consulting services company Capgemini SE.
* India-based Power Finance Corp. Ltd. priced US$400 million worth of ten-year green senior unsecured notes with a coupon of 3.75% from international debt capital markets. The notes will be listed on the Singapore Exchange and the international securities market segment of the London Stock Exchange.
AUSTRALIA AND NEW ZEALAND
* Steadfast Group Ltd., an Australia-based insurance broker, will acquire a 100% stake in Whitbread Insurance Group. The transaction will be funded through an underwritten institutional equity placement of A$100 million and a non-underwritten share purchase plan to retail shareholders in Australia and New Zealand for up to A$25 million.
* Australian credit union companies Queenslanders Credit Union Ltd. and Queensland Country Credit Union Ltd. are set to merge on April 1, 2018. The deal would create the second-largest credit union in Queensland, Australia, with assets nearing A$2.1 billion and a network of 33 branches and agencies.
* Spanish lender Banco Santander SA shuttered its operations in Australia after its license was suspended, The Australian reported, citing a confirmation from the Australian Prudential Regulation Authority. The bank's decision to depart the country was blamed on Australia becoming an increasingly uncertain market, regulatory regimen shifts and Basel III changes, according to the report.
* The Australian government was criticized for failing to consult the Australian Securities and Investments Commission before launching a royal commission into the country's banking, insurance and superannuation sectors, The Australian reported, citing Peter Kell, the regulator's acting chair. Kell, however, described the draft terms of reference for the inquiry as "broad."
* Former and current CEOs of Australia's major banks could be summoned to face the banking royal commission because of the inquiry's broad mandate to probe misconduct, The Australian reported. Former National Australia Bank Ltd. CEO Cameron Clyne said he would be happy to give evidence, while former Commonwealth Bank of Australia CEO Ralph Norris said he "would not have any issues in appearing before the commission," the publication separately reported.
Janna Estares, Sally Wang, Jonathan Cheah, Jaekwon Lim and Santibhap Ussavasodhi contributed to this report.
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