Lead Stories

Singapore unveils plan to bolster its status as an Asian financial hub
Masayuki Kitano – Reuters
Singapore unveiled a roadmap for strengthening its status as a financial hub in Asia, with the aim of growing the sector more than 4 percent a year and creating thousands of jobs.

A New Asia-to-Europe Railway Route Is Opening Up
By Zulfugar Agayev – Bloomberg
Baku-Tbilisi-Kars line links Asia and Europe via Caucasus; Leaders from five countries attend opening of project
Azerbaijan opened a long-delayed railway through the Caucasus region that’s intended to become a new transport corridor for goods carried between Asia and Europe.

Trump and rise of China spur global transformation; Tokyo conference tackles new reality in global financial and trading systems
It is a big challenge to keep the international financial and trading systems working as the world changes rapidly — they are two of the basic frameworks of the global economy. The financial system has been shaken by a series of crises in the past decades, while China’s initiatives, including the establishment of the Asian Infrastructure Investment Bank, are seen as a challenge to the old U.S.-dominated system.

Party’s Over? Chinese Markets Battered After Bout of Artificial Calm; Beijing stage-managed artificial calm in the country’s stock markets during last week’s Communist Party congress
By Shen Hong – WSJ
Chinese markets suffered a broad selloff Monday, losing some of the shine they maintained during last week’s major congress of the Communist Party.

Trump must tread carefully with his Asian bankers; It’s not like the U.S. is flush – it has a $666 billion deficit. Why, then, budget-busting tax cuts that increase inflation risk, imperil credit ratings and irk his bankers?
As Donald Trump angles to make America’s debt burden great again, he has some finessing to do with his bankers.

Asian funds in talks to buy Pearson’s English language unit: sources
Kane Wu, Pamela Barbaglia, Carol Zhong – Reuters
Two Asian funds are nearing a deal to buy Pearson’s (PSON.L) English-language school business after trumping a rival bid from private equity firm MBK Partners, sources familiar with the matter told Reuters.

Exchange News

Shanghai Stock Exchange to Seek Pacts With More Foreign Bourses
Bloomberg News
Plan is part of mainland’s ‘One Belt, One Road’ initiative; Chinese group bought a 40% stake in Pakistan Stock Exchange
Shanghai Stock Exchange outlined plans for closer links with other national markets, taking further steps to enact President Xi Jinping’s policy to project Chinese soft power around the world.

IHS Markit and KRX Launch Two Korean Stock Indices Based on Dividend Forecasting Metrics
IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, today announced the launch of two new stock indices – KRX-IHS Markit KOSPI 200 Dividend Forecast Yield Top 30 and KRX-IHS Markit KOSPI 200 Dividend Forecast Growth Top 30 – in alliance with Korea Exchange (KRX), a leading cash and derivatives exchange based in Seoul, South Korea.

Japan Exchange Group, Inc. and Consolidated Subsidiaries Consolidated financial results for the six months ended September 30, 2017 (Based on IFRS), unaudited

Overview of Earnings for Q2 FY2017
Japan Exchange Group, Inc.

Glencore to cancel Hong Kong secondary listing
Neil Hume, David Sheppard – FT
Glencore, the Swiss mining and trading giant, is set to cancel its secondary listing in Hong Kong amid a lack of interest from investors, according to people familiar with its plans.

Regulatory News

Financial advice firm to pay $1 million penalty for breach of best interests duty
The Federal Court has imposed a civil penalty of $1 million against Melbourne-based financial advice firm NSG Services Pty Ltd (currently named Golden Financial Group Pty Ltd) (NSG) for breaches of the best interests duty introduced under the Future of Financial Advice (FOFA) reforms.

Investing News

HSBC posts huge jump in profit as Asia business grows
Banking giant HSBC has reported pre-tax quarterly profits of $4.6bn (£3.5bn) for the three months to the end of September.

Billionaires Keep Bubbling Up as China Property Market Soars
Bloomberg News
Country’s property moguls more than double wealth in 2017; Limited liquidity, crossholdings common among billionaires
Nowhere on Earth is wealth being created faster than in China’s mainland property market.

Nomura’s Overseas Blip
Nisha Gopalan – Bloomberg
Nomura Holdings Inc. may be ruing its international presence right now. It shouldn’t.


Nikkei will launch new index to aid Asian-focused investors; Nikkei Asia300 Investable meets rules for indexes covering trusts and other financial instruments
Nikkei Inc. said Monday it will launch in December a new stock index for financial instruments covering the “Asia300” group of must-watch companies.

Lessons of the 1997 Financial Crisis in Japan
Karube Kensuke- Nippon.com
Japan’s economy is still under the grip of deflation and low growth, a situation that can be traced back to 1997 when a financial crisis led to the abrupt contraction of the economy. Two decades later, this article reviews what actually took place in November 1997

Japan bank Mizuho eyes cutting workforce by one-third: reports
Business Times
[TOKYO] Major Japanese bank Mizuho Financial Group is considering slashing its global workforce by about one-third over a decade, reports said, as it looks to replace clerical jobs with artificial intelligence and other technology.

Mainland China

Xi Appoints New Leader to Run China’s Biggest Financial Hub
By Ting Shi – Bloomberg
Li Qiang to head Shanghai; Li Xi leads Guangdong province; Moves expand Xi’s options for remaking China’s top leadership
One is China’s most reliable political springboard, the other is its largest regional economy. Both got new party chiefs in a weekend reshuffle that expands President Xi Jinping’s options for remaking the top leadership.

This start-up lets Chinese investors pour cash into US tech firms before they go public
Ryan Browne – CNBC
An online investment platform that allows Chinese investors to access a number of “alternative” U.S. investments officially launched Monday.

China’s New, Severe Curbs on the Internet Leave Little Left to Censor; Google and Facebook now face an even tougher time nosing their way into the world’s biggest market.
Bloomberg News
In late October, as he pushed to cement his grip on China’s ruling Communist Party for another five years, President Xi Jinping made it clear that with him in charge, the country’s internet wouldn’t be getting more liberal.

Chinese capital makes rapid ascent in global aircraft leasing; Banks and lessors on path to claim a third of world market by 2022
Peggy Hollinger, Industry Editor – FT
Chinese capital is expected to claim more than a third of the $261bn aircraft leasing market by 2022, a seven-fold rise in just 14 years, according to a leading aviation data provider.

China Bond Selloff Spreads to Stocks as Deleveraging Risks Mount
Bloomberg News
ChiNext leads fall as bond yields rise near a three-year high; There’s concern economic data in October will weaken: KGI
Chinese stocks fell the most since early August, breaking the calm that persisted through the recent Communist Party Congress, as sovereign bonds extended a monthly rout amid concern the government will step up efforts to reduce leverage in the financial sector.

The Biggest Stock Collapse in World History Has No End in Sight
By Kana Nishizawa and Aibing Guo – Bloomberg
PetroChina, the first $1 trillion company, has sunk since 2007; The oil producer will report third-quarter earnings on Monday
It’s going to take more than the biggest stock slump in world history to convince analysts that PetroChina Co. has finally hit bottom.

China’s central bank drama; For investors, the PBOC succession story will come center stage
Chinese President Xi Jinping’s “new era” looks anything but fresh. All six comrades he chose to help run China are in their 60s, likely to retire at the end of this five-year term. By pointedly not naming any potential heirs, Xi telegraphed that he may remain the helmsman for quite some time.

China’s Debt Battle Has Global Growth at Stake
By Enda Curran and Chris Anstey – Bloomberg
China is the biggest single contributor to global GDP growth; Plan to rein in debt will have ramifications for world economy
It used to be that when America sneezed, the world caught a cold. This time around, it’s the risk of a sickly China that poses a bigger threat.

Banks benefit from China’s economic rebalancing; ICBC is trading above book value in Hong Kong for the first time in two years
Henny Sender – FT
As part of China’s anti-corruption drive, the free liquor and even bottled water disappeared from the hotels housing guests for the 19th Party Congress, which concluded last week. But despite the austere note on which the core leadership insisted, there was a congratulatory air about the proceedings.

Hong Kong

A Classy Compromise for Hong Kong
By Nisha Gopalan – Bloomberg
Hong Kong’s markets are closing the week on a dramatic note. As the stock exchange shut its iconic trading floor Friday, it appeared the government was preparing to leave the past behind in a more significant way by abandoning the principle of one share, one vote.

A tale of two cities: how home prices affect Hong Kong and Shanghai’s competitiveness; A new study says Hong Kong’s lofty home prices ‘threaten’ its competitiveness. But too much intervention can be just as damaging
Daniel Ran – South China Morning Post
As Shanghai and Hong Kong battle for supremacy on the economic and financial fronts, property prices in the two cities could potentially become the game changer.

NY Times, Economist, Financial Times, Guardian, and BBC barred from Xi Jinping speech
Hong Kong Free Press
President Xi Jinping Wednesday encouraged members of the press “to visit and see more of China” when he unveiled his new leadership — but five Western media outlets were excluded from the event.


Indonesia’s Economy May Beat Expectations, Indrawati Says
By Karlis Salna , Tassia Sipahutar , and Rieka Rahadiana – Bloomberg
Trump tax-cut plan could be significant headwind for Indonesia; Full impact of interest rate cuts likely felt next year
Indonesia’s finance minister said Southeast Asia’s biggest economy could expand at a faster pace next year than initially forecast.

Indonesia’s Ministry Of Finance Deploys Matrix Centralized Biometric Time-Attendance System
Financial management has existed right from the era of Kingdoms in Indonesia. The Ministry of Finance is an institution under Indonesian Government, which has an important role in conducting economic development. In Indonesia, the important role of the Ministry of Finance is managing state’s finances and assisting the leader in the state’s finance and asset. Therefore, the Ministry of Finance can be considered as the guard of state finance.


Singapore Unveils Plan to Create 4,000 Finance Sector Jobs
By Chanyaporn Chanjaroen – Bloomberg
Aims to offset bank jobs lost due to financial technology; Plans to develop wealth management, foreign-exchange trading
Singapore wants to bolster its status as a wealth management and foreign-exchange center as part of plans to create more financial-sector jobs and mitigate the effect of rapid changes in technology.


Vietnam follows China and BANS Bitcoin – here’s why banks and governments hate the cryptocurrency; The State Bank of Vietnam has prohibited the use of virtual currencies for payments in the country
Jeff Parsons – Mirror
Vietnam has introduced a ban on Bitcoin and other virtual cryptocurrencies, echoing a similar move made by China last month.

Vietnam bans payments in Bitcoin and other cryptocurrencies; Those who continue accepting payments in cryptocurrency face heavy fines.
Charlie Osborne – ZDNet
The State Bank of Vietnam has ruled that cryptocurrency, including Bitcoin, is not a legal method of payment.

APEC 2017: APEC – Important force supporting Vietnam’s reform
The statement was made by Vice Chairman of the National Committee on APEC 2017 and Standing Deputy Foreign Minister Bui Thanh Son during a recent interview with Vietnam News Agency ahead of the APEC Economic Leaders’ Meeting slated for November in the central city of Da Nang.


SEC spots no signs of share manipulation 3
There are no signs of share manipulation even as the Thai bourse rose 9% in the third quarter, as most active trading involves large and medium-cap stocks on the SET100, says the market regulator.

Thais wary of using robots
JESUS ALCOCER – Bangkok Post
While experts estimate that close to 50% of jobs in Thailand could be automated with current technology, the public may not be ready to welcome robots into key jobs, according to the latest survey by UK…


Taiwan Apple suppliers gain after strong demand for new iPhone
Edward White – FT
Taiwan-listed Apple suppliers climbed on Monday after demand for the new iPhone X exceeded supply when pre-orders for the device opened late last week.

State-run banks to decide on their own on US units
By Crystal Hsu – Taipei Times
State-run lenders can assess whether to exit the US market or downsize operations if legal compliance costs seriously erode profitability, Minister of Finance Sheu Yu-jer (許虞哲) said yesterday.

South Korea

Top three South Korean banking groups post robust 3Q profits’; But rising debt, government clampdown on mortgages loom over sector
The three leading banking groups in South Korea posted better-than-expected earnings in the third quarter, as interest rates look set to be hiked as early as November.


MIA: Malaysia on track to become high-income nation
By NST Business
The Malaysian Institute of Accountants (MIA) has welcomed the numerous programmes and incentives focused on the development of micro entrepreneurs, following the recent announcement of the Budget 2018.


REMONETISATION, OR THE GREAT INDIAN HOPE TRICK;Finance Minister Arun Jaitley plans to revitalise the country’s state banks with a 2 trillion rupee injection – money he wants to raise by selling those exact same financial institutions special bonds. Will such sorcery pay off?
BY TOM HOLLAND – South China Morning Post
EVERYONE LOVES A good conjuring trick. Unfortunately, when you work out how it is done, the magic quickly wears off. Last week, India’s Finance Minister Arun Jaitley announced a financial conjuring act which, if he can pull it off, will be a worthy rival to the fabled Great Indian Rope Trick

India’s richest man has a message for investors: India first!
Financial Express
“A few years ago, the fashion in India was to invest abroad. If you don’t invest abroad, you are left out.” Not anymore!

PM Narendra Modi says more green energy should power India
Financial Express
Prime Minister Narendra Modi said green energy like solar power would power India as 175 gigawatt (GW) of electricity is expected to be generated from renewable sources.

Road Map to Save India’s Cash-Strapped Banks Near Completion
By Shruti Srivastava and Vrishti Beniwal – Bloomberg
India may include recapitalization bonds in mandatory reserves; Modi to infuse $32 billion to spur lending by state banks
India is considering all options including making bank recapitalization bonds eligible for inclusion in statutory limits for investment in government securities, a senior government official said.


Australian banks get slap on the wrist for attempts to break securities laws
By David Fickling – Bloomberg
IF a tree falls in the forest and no one’s around, does it make a sound? If a bank tries to manipulate an interest-rate benchmark and gets off with a slap on the wrist, does it make a difference?

Hefty $1m penalty a warning to Aussie financial advisers
By Tom Carnegie – International Advisor
An Australian financial advice firm has been hit with a A$1m ($766,575, £581,700, €659,100) civil penalty, the first handed out by the Federal Court of Australia for failing to act in the best interests of its clients in accordance with the Future of Financial Advice (Fofa) reforms.

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