Market Infrastructure

Hong Kong, China Agree to Cooperate on Audit Regulation

28/05/2019

Hong Kong’s Financial Reporting Council will be able to access audit papers located in the mainland “through an effective mechanism and clear procedures”.

Market Infrastructure

Decline in Correspondent Banking is Universal – CPMI

28/05/2019

Over the last seven years, active relationships in the global correspondent banking network have declined by about 20%, and the number of active corridors has fallen by roughly 10%.

Enforcement

SFC Fines China Merchants Securities for IPO Sponsor Failures

28/05/2019

China Merchants Securities was a joint sponsor with UBS – fined in March – for the 2009 IPO of China Metal Recycling, which was found to have fabricated financial information.

AML / KYC

Japan FSA Orders Seibu Shinkin Bank to Improve Loan Screening

27/05/2019

The bank reportedly extended loans to persons connected to ‘antisocial forces’, and potentially executed over 100 fraudulent real estate loans.

Market Infrastructure

S. Korea FSC Rejects Remaining Internet-Only Bank Applicants

27/05/2019

The FSC will accept applications again during Q3 this year. Kiwoom Bank and Toss Bank can address their shortcomings and resubmit their applications.

Capital / Liquidity

RBI Proposes Liquidity Risk Management Norms for NBFCs

27/05/2019

Under the draft rules, NBFCs will have to meet to a 60% LCR requirement from April 2020, increasing each year to the full 100% LCR in April 2024.

Securities / Derivatives

HK to Suspend Stocks on Disclaimer, Adverse Audit Opinions

27/05/2019

Trading in a Hong Kong listed company will be suspended if the auditor issues a disclaimer or adverse opinion for any financial year commencing on or after 1 September 2019.

Securities / Derivatives

Sino-Japan ETF Connect Launched; Six Cross-Border ETFs Approved

27/05/2019

The announcement follows an ETF Connectivity Agreement signed by JPX and the SSE last month, where both agreed to establish an system for cross-listings of ETFs.

Capital / Liquidity

UPDATED – PBOC, CBIRC Take Control of Inner Mongolia Bank

27/05/2019

The PBOC and CBIRC have said they are taking control of Baoshang Bank, a small privately-owned bank whose owner disappeared two years ago.