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ASIFMA Asia Regulatory Review

12 - 19 April 2016 | Issue 295


ASIFMA's 6th China Capital Markets Conference to be held on Wednesday 27 April 2016 in Singapore
ASIFMA's signature conference provides an industry-wide platform for global and regional policymakers, senior regulators, asset managers, corporate treasurers, financing firms, fintech firms and China-watchers to discuss the development of China's capital markets and the renminbi's internationalization. Register now given seats are limited!

3rd Annual Symposium on EU-Asia Relations in Financial Services to be held on 25-27 May 2016 in Beijing
This closed-door symposium on EU-Asian capital markets regulation provides a unique opportunity for European and Asian policy makers, high-level industry influencers, leading academics and markets representatives to meet and discuss important issues affecting EU-Asia trade, investment and capital markets. The event is limited to 100 participants. Register now given seats are limited!



No limit for investment by foreign banks, institutions in Chinese interbank market
China will not limit investments by foreign central banks and similar institutions in the Chinese interbank foreign exchange (FX) and bond markets, officials said. But foreign banks and institutions must abide by Chinese laws and regulations and register their investments in the interbank FX market with the China Foreign Exchange Trade System and register their bond investments with the People's Bank of China (PBOC), the central bank said on its official website. (Xinhua)

China Securities Regulator to Draft Domestic Private Equity Fund Law
China Securities Regulatory Commission (CSRC) has been tasked to draft a new regulation to oversee the domestic private investment fund industry, the country's State Council said. The proposed law is listed as one of dozens of urgent projects that need to be completed on a priority basis, according to a statement posted on the Chinese government's official website. (China Money network)

China's AMAC to impose tough new rules on hedge funds in 'Wild East' crackdown
China's hedge fund operators can expect more stringent regulation from their self-regulatory industry body in an intensifying crackdown on "Wild East" fraud and illegal money raising, the Asset Management Association of China (AMAC) said. AMAC, the self-regulatory body that oversees private funds, said the new rules were intended to further protect investors' legal rights and to regulate the private fund management industry, described by some insiders as a "Wild East" rife with fraud. (Reuters)

Shanghai introduces yuan-denominated gold benchmark price
The Shanghai Gold Exchange, the world's largest physical gold exchange, launched a yuan-denominated benchmark price on Tuesday in Shanghai, a measure that will benefit both China's domestic gold market and the global precious metals market. SGE said in a circular that the launch of the Shanghai Gold Benchmark Price will be useful as it adequately reflects the gold supply and demand in China, and represents the price trend of China's gold market.


HKMA - Frequently asked questions on the Basel III leverage ratio framework
The Basel Committee on Banking Supervision (BCBS) has recently published an updated version of the document Frequently asked questions on the Basel III leverage ratio framework incorporating responses to a third set of frequently asked questions (FAQs). Institutions are expected to take into account the guidance set out in the FAQs in calculating their leverage ratio for the purposes of completing the HKMA's Quarterly Template on Leverage Ratio.

EUBIP Position Paper - Financial Services Business Council (FSBC) of the European Chamber of Commerce in Hong Kong
Recommendations include: pursue agreements between the European Union (EU) with China and Hong Kong instead of national bilateral agreements in order to streamline rules and reduce complexity; create an access mechanism for UCITS funds to the Mainland-Hong Kong Mutual Recognition of Funds scheme; ease the distribution of Hong Kong and Chinese funds to Europe; and participate in other Asian Fund passport initiatives.

HKEX Supports Mainland Roadshow for Stock Connect Stocks
Hong Kong Exchanges and Clearing Limited (HKEX) has encouraged Hong Kong-listed companies to enhance their transparency and their communication with investors. HKEX supported the Hong Kong Investor Relations Association's (HKIRA) first-ever roadshow in the Mainland as the HKIRA took a delegation of Hong Kong-listed companies to Shanghai to meet with leading Mainland brokers' research houses.


MAS - Speech by Mr. Tharman Shanmugaratnam, Deputy Prime Minister and Coordinating Minister for Economic and Social Policies, and Chairman of MAS
The speech addresses the tensions and development of fintech.

SGX aims to be multi-asset exchange
Amid consolidation among major global bourses, Singapore Exchange has decided to pursue a different strategy from many of its peers. One of its focuses will be to offer new derivative products in the hope of tapping investor demand. In a recent interview with The Nikkei, Loh said that SGX would like to grow as a "multi-asset exchange" and would consider all "activities" necessary to achieve that goal. (Nikkei Asian Review)


The FSA's Approach to Introduce the TLAC Framework
Taking account of the progress in international discussions on developing a framework for an orderly resolution of global systemically important banks (G-SIBs), the Financial Services Agency (FSA) releases its approach to introduce the TLAC framework for Japanese G-SIBs.

The Bank of Japan - Toward a Robust Financial Market and the Role of the Bank of Japan
Speech by Executive Director Amamiya, BoJ


RBI - Indian Debt Market 2020: The Underpinnings & the Path Ahead
By Shri Harun R Khan, Deputy Governor.


RBA - Financial Stability Review report
The review includes sections on the Australian Financial System, the Global Financial Environment, and developments in the Financial System Architecture.


KRX launches probe over 'mysterious' stock price surge
Korea's bourse operator launched a probe over a "mysterious" fluctuation of an apparel brand's share price, which led to distortions in the tech-heavy KOSDAQ market. The Korea Exchange (KRX) said that it has ordered a number of securities firms to hand over ledgers and information on accounts that intensively made buy orders on shares of apparel company Codes Combine, under suspicion of stock price manipulation. (Korea times)


G20 Finance Ministers and Central Bank Governors Meeting Communique
The G20 Finance Ministers and Central Bank Governors have published a Communique following their meeting in Washington, DC on 14-15 April 2016.

BIS - Prudential treatment of problem assets - definitions of non-performing exposures and forbearance - consultative document
At present, banks categorize problem loans in a variety of ways and there are no consistent international standards for categorizing problem loans. The definitions proposed by the Basel Committee aim to foster harmonization in the measurement and application of two important measures of asset quality and thereby promote consistency in supervisory reporting and disclosures by banks.

Joint UN/FATF open briefing on depriving terrorist groups of sources of funding
The joint UN/FATF open briefing on 14 April provides an opportunity to discuss new and emerging terrorist financing trends and highlight initiatives to prevent and counter terrorist financing.


EBA - EBA publishes Opinion on the application of customer due diligence measures to customers who are asylum seekers from higher-risk third countries or territories
The European Banking Authority (EBA) published an opinion setting out measures credit and financial institutions can take to comply with EU Anti- Money Laundering and Counter-Terrorist Financing (AML/CFT) requirements when providing asylum seekers from higher-risk jurisdictions with access to basic financial products and services.

ESMA announces EU-wide stress tests for CCPS
The European Securities and Markets Authority (ESMA) announced the publication of its first EU-wide stress test exercise regarding Central Counterparties (CCPs) on 29 April 2016.

ESMA publishes opinion on EU framework for loan origination by investment funds
The European Securities and Markets Authority (ESMA) published an opinion addressed to the European Parliament, the Council and the Commission on the components necessary for a common European framework which applies to loan origination by investment funds.

FCA publishes the interim report of its investment and corporate banking market study and a discussion paper on the IPO process
The FCA published the interim conclusions of its investment banking market study, finding that while many clients feel well served by primary capital market services, there were also some areas where improvements could be made to encourage competition.

FCA and PRA jointly publish proposals to enhance enforcement decision-making processes
The FCA and the PRA published proposals aimed at strengthening the transparency and effectiveness of their enforcement decision-making processes.

Bank of England to become administrator of SONIA interest rate benchmark
From 25 April the Bank will assume overall responsibility for the SONIA benchmark and will provide oversight and governance. The WMBA will continue to calculate and publish SONIA, in exactly the same way as at present, but on behalf of the Bank. The Bank will administer SONIA in line with international best practice, as encapsulated by the IOSCO Principles for Financial Benchmarks.

UK leads European calls for G20 action on beneficial ownership
Chancellor George Osborne unveiled an international deal to automatically share information on the ultimate owners of companies with key EU allies, making it more difficult for firms to dodge tax or funnel corrupt funds. Britain has initiated an agreement with Germany, France, Italy and Spain that will see tax and law enforcement agencies from the five countries exchange data on company beneficial ownership registers and new registers of trusts, allowing for more effective investigation of financial wrongdoing.


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Standard & Poor's


China, Commodities, And Capital Flows Make For A Choppy Ride For Asia-Pacific In 2Q 2016


Chinese Banking Sector Heading For Profit Decline As Problem Assets Mount


Japan Has An Opportunity To Profit In Asia's Overheating Infrastructure Market If It Enhances Risk Management


The Market For Liquefied Natural Gas: Staying Afloat In A Sea Of Supply


For China's Department Stores, The Going Won't Get Easier Anytime Soon

Clifford Chance




Eric Tang



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