Lead Stories

Banks invited to work on Great Wall’s $2bn Hong Kong float; Asset management company tasked with cleaning up China’s bad debt plans IPO for 2018
Don Weinland in Hong Kong – FT
China Great Wall Asset Management has asked banks to pitch for work on a Hong Kong initial public offering that is expected to raise at least $2bn for the company tasked with cleaning up China’s bad debt.

Behind Abe’s Biggest Reform Win, Old Japan Inc. Culture Lives On
By Keiko Ujikane and Takako Taniguchi – Bloomberg
Some stock buybacks are linked to companies’ foundations; ‘Isn’t this simply a form of stealing,’ fund manager asks
While Prime Minister Shinzo Abe’s vaunted third arrow — structural reforms — has generally been rated as unsuccessful, his administration has received high marks from Japan analysts for shaking up the country’s corporate-management system.

Ant Financial keeps loan delinquency low on a diet of big data, exercise in risk management
South China Morning Post
Reliance on big data and real-time credit risk management helps Ant Small Loan maintain low delinquency and NPL levels thus far

North Korea Launches ICBM Near Japan, Ending Two-Month Lull
By Kanga Kong , David Tweed , and Nick Wadhams – Bloomberg
Trump has warned of military action to defend against threats; Launch follows sixth nuclear test in defiance of UN statements
North Korea shattered a two-month period of relative quiet by firing an intercontinental ballistic missile, in its first provocation since U.S. President Donald Trump’s decision this month to label the country a state sponsor of terrorism.

Exchange News

Bull Run: BSE, NSE Set For High Volume Growth
By: Sreekumar Raghavan- Corporate Ethos
The bull run in the Indian stock market saw the key benchmark indices S&P BSE Sensex hitting a record high of 33,865 while Nifty 50 rose to a record high of 10490 as domestic funds and investors have pumped huge amount of money following the demonetisation and weakening of gold and real estate prices.

Regulatory News

Volkswagen Financial Services Australia pays $216,000 penalty for misleading advertising
Volkswagen Financial Services Australia Pty Ltd (ACN 097 071 460) (VWFSA) has paid a penalty of $216,000 after ASIC issued 20 infringement notices for alleged misleading statements made by VWFSA as part of its ‘1% you can’t ignore’ advertising campaign.

Investing News

How Gandhi Inspired One Woman’s Rise to $4 Billion Fund Manager
By Ameya Karve – Bloomberg
I want to do better in a rising market, SBI MF’s Andani says; Andani is one of top 10 fund managers in India: Morningstar
In June 1995, a young Sohini Andani showed up uninvited at the Mumbai office of K.R. Choksey, the famous broker and investor, and told him she wanted a job. She’d read about his investment process in a magazine.

Trump’s War of Words With North Korea Helped This Hedge Fund Gain 48%
By Bei Hu – Bloomberg
Gen2 bet on North Korea risks, China’s chances of hard landing; ‘Risk from North Korea was a lot bigger,’ Kyle Shin says
A Hong Kong hedge fund started by a former Kingdon Capital Management employee rose 48 percent through October by wagering that fears over North Korea would rise while worries of a Chinese credit crisis would recede.


Blah, Blah, Blah in Japan? Listen Carefully
By Shuli Ren – Bloomberg
Federal Reserve Chair nominee Jerome Powell has compared central bank communication to a Far Side cartoon: A man chides his dog, and all the dog hears is “blah, blah, blah.”

Toray joins growing list of scandal-hit Japanese companies; Global carbon-fibre leader is latest to admit to falsifying quality-related data
Leo Lewis in Tokyo – FT
Toray Industries, the global leader in carbon fibre, has become the latest company to admit to falsifying quality-related data over many years, intensifying a scandal that the government says is “shaking the foundation of fair trading”.

From tomatoes to banks, Amazon dominates Japan’s cloud; BOJ’s negative interest rate convinces lenders to leave data with AWS
The Bank of Japan’s January 2016 decision to introduce a negative interest rate has had ripple effects throughout the economy, but one unexpected beneficiary has been Amazon Web Services

Mainland China

China’s HNA says it will pull out of deals on Beijing’s investment blacklist
South China Morning Post
Company’s chief defends overseas investments and says it will ‘listen to orders’

Trump team opens new front in trade battle with China; US initiates first anti-dumping probe against major partner since 1985
Shawn Donnan in Washington – FT
The Trump administration launched a fresh trade attack against China on Tuesday, with Washington initiating an anti-dumping investigation against a major trading partner for the first time in more than a quarter century amid fears that it is preparing for the opening skirmishes of a trade war.

How to Protect China’s Children; The effort has to start with paying teachers properly.
Adam Minter – Bloomberg
Nothing infuriates China’s online masses more than the belief that the powerless have been victimized by the powerful. The fury was particularly intense late last week, when allegations against a Beijing-area kindergarten blew up online. According to Chinese state media, kids as young as three years old were “reportedly sexually molested, pierced by needles and given unidentified pills.” The news came at a particularly raw time: Just two weeks earlier, China’s internet had convulsed in anger over video footage of teachers at a Shanghai-area kindergarten beating small children and force-feeding them wasabi.

Hong Kong

Hong Kong’s China-Fueled Equity Rally Is Now at Beijing’s Mercy
By Justina Lee – Bloomberg
China said to block funds that want to buy mainly in Hong Kong; Mainland is a key source of offshore inflows for city’s stocks
Hong Kong shares have been among the world’s best performers this year, but concern is mounting that China could take away the punch bowl.

China Halts Approvals for Some Hong Kong Stock Funds
Bloomberg News
Halts approvals for funds 80% invested in H.K. stocks: people; Hong Kong shares fall amid concern the move will limit inflows
China’s securities regulator is suspending approvals for some mutual funds that plan to allocate at least 80 percent of their portfolios to Hong Kong-traded stocks, according to people briefed on the matter.

Hong Kong offices are world’s most expensive to rent; Chinese companies occupy 19% of prime office towers in Central
Hong Kong has replaced London as the most expensive city for businesses to set up office thanks to the depreciation of British pound and aggressive expansion of mainland companies, survey shows.


How Indonesia is using crowdlending to boost financial inclusion; A fintech startup is helping Indonesian farmers get better access to market information and capital to grow their businesses.
Pulse Lab Jakarta
Limited access to capital is a common problem among Indonesian farmers. Many of them are unbanked and often struggle to secure loans from banking institutions when trying to expand crop production.


A 91% Stock Rally, and Now Singapore’s Temasek Is Knocking
By Livia Yap and Sterling Wong – Bloomberg
Heliconia bought 2 percent stake in Singapore company; CEO open to co-investing with Health Management International
After a 91 percent surge in its share price since 2016, Health Management International Ltd. has gained an important new supporter — a unit of Singapore’s state investment firm.


Central bank launches first-ever fintech challenge
Vietnam News
The State Bank of Việt Nam (SBV) on Tuesday officially launched the first-ever Fintech Challenge Việt Nam to spur innovation in financial services for greater financial inclusion in the country.

Vietnam Sheds Its Minnow Status; The Ho Chi Minh exchange is humming, buoyed by a strong economy and state asset sales.
By Andy Mukherjee – Bloomberg
Four years ago, the Ho Chi Minh City Stock Exchange traded just $50 million of equities a day, while activity in Manila was five times as brisk. This year, Vietnam will overtake the Philippines.


Taiwan To Use Singapore As Model For Digital Asset Regulation
Taiwanese financial regulators are taking a page from the book of their Singaporean counterparts. On November 24, 2017, Wellington Koo, the chairman of Taiwan’s Financial Supervisory Commission, explained that on cryptocurrency matters, the agency will follow the lead of Singaporean regulators.

China jails Taiwanese rights activist for 5 years
Edward White -= FT
A Taiwanese political activist has been sentenced to five years in prison by a Chinese court on charges of inciting subversion of state power.

South Korea

Bitcoin could lead kids into illegal activities like drug dealing, South Korean prime minister warns; Rising interest in cryptocurrencies could push children into illegal activities like drug dealing, South Korean Prime Minister Lee Nak-yeon said; He said that there are cases of young Koreans looking to make “quick money” from digital currencies like bitcoin
Arjun Kharpal – CNBC
Rising speculation on cryptocurrencies like bitcoin could cause kids to get into crime such as drug trafficking or pyramid schemes, South Korea’s prime minister said Tuesday.


Philippine Bank Penalized for $35 Million Fraud; Shares Rise
By Cecilia Yap and Siegfrid Alegado – Bloomberg
Ordered to allocate capital for risk, directors suspended; Metrobank says it absorbed fraud amount, to set aside more
The Philippine central bank penalized Metropolitan Bank & Trust Co. by suspending some officials and ordering it to set aside funds following an internal fraud that cost the lender 1.75 billion pesos ($35 million).


India’s big business gamble: taking money from China; Greater leverage comes with a stronger economy and healthier finances
Henny Sender in Hong Kong – FT
In mid-October Guo Guangchang, founder of Fosun, flew to Mumbai in his private plane to attend the dinner celebrating the Chinese conglomerate’s purchase of Indian pharmaceuticals company Gland. For many weeks, approval for the transaction had been held up — hostage to the border dispute between India and China in Doklam. The situation was finally resolved not because Delhi signed off but because Gland’s founder, PVN Raju, agreed to sell a smaller portion of his holdings, bringing the transfer below the 74 per cent threshold that triggered the need to secure the government’s blessing. Over mao-tai, (which the Fosun people claimed cost $1,000 a bottle), Mr Guo, clad in jeans and a T-shirt, said he hoped to do many more deals in India, according to several attendees. Fosun has already joined the many Chinese companies backing tech start-ups in the country.

India’s chemical industry to hit $300 bn by 2025: Government
Financial Express
Addressing a CII conference, Department of Chemicals and Petrochemicals secretary Rajeev Kapoor said this industry is critical and one of the driving engine of manufacturing sector.

Data usage per smartphone in India to grow 5-fold by 2023: Ericsson
Financial Express
India jumped to top spot in data usage in a period of 1 year after Reliance Jio launched its 4G (LTE) services.


Super funds reject need for financial services inquiry
by Sally Patten – AFR
Superannuation funds say there is no need for a commission of inquiry into the sector because more than a dozen inquiries and reviews over the past decade have already led to substantial reform.

Nobody Need Fear a Banking Inquisition
David Fickling – Bloomberg
Head for the hills — the nightmare scenario that Australia’s banks have long feared may be about to come to pass.

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