Business Digest, November 2, 2012

The Hong Kong Monetary Authority stepped into the currency market twice yesterday, selling HK$2.3 billion each time as the Hong Kong dollar repeatedly hit the strong end of its trading range against the US dollar. Under the currency peg, the HKMA is obliged to intervene when the US dollar reaches HK$7.75 or HK$7.85, to keep the band intact. The latest intervention was the eighth in two weeks. Reuters

Beijing plans to allow foreign banks to act as custodians in the mainland's US$380 billion mutual fund industry for the first time, the latest move amid a raft of government reforms that seek to develop the country's financial system. The securities regulator posted draft rules on its website and is seeking opinions from the public. Reuters