China

The National Internet Finance Association has launched a 23-firm pilot scheme to address concerns around risks to user privacy from financial institutions' mobile apps.

The regulator has fixed the minimum net capital for commercial lenders' wealth management subsidiaries at 500 million yuan, and at least 40 percent of the net assets.

Mainland investors' profits made through Stock Connect and the MRF scheme will be exempt from income tax until 31 December 2022.

Standard Chartered and the four large national bad debt managers are among the firms allowed to sell NPL-backed securities as China looks to expand its 2016 plan to clean up bank balance sheets.

The measures are part of China's efforts to clean up the ratings industry and open up to foreign competition, in order to boost foreign participation in the domestic bond markets.

Approved lenders can opt to convert to small finance companies in the two year grace period, as authorities moved to shut down the scandal-ridden sector. 

The index provider has laid out market access concerns for Chinese authorities to resolve before any more Chinese A shares can be included in its indexes. 

The requirement for small lenders to sell shares in the OTC markets before issuing preferred shares has been removed to allow them to more easily raise capital.

The overseas transfers were reportedly used by mainland residents to participate in online gambling sites tied to popular Macau casinos with international licenses.

Moody's says the regulation may widen credit divergences between large and small banks, as the latter are less likely to receive less government support.