Regulation | South China Morning Post
  • Sat
  • Apr 18, 2015
  • Updated: 11:12am


Key developments in regulation of financial markets with a focus on those in Hong Kong and mainland China.

Reforms fuel concerns over regulator role for HKEx

HKEx chief executive Charles Li Xiaojia said the quota for through-train stocks would increase by more than 30 per cent but gave no more details. Photo: Sam Tsang

With Hong Kong Exchanges and Clearing (HKEx) the main beneficiary of market reforms, questions have been raised again about whether it should keep its role as the exchange regulator.

Friday, 17 April, 2015, 3:58pm

Shanghai free-trade zone tax reform to be applied across mainland China

The tax reform is aimed at encouraging entrepreneurs. Photo: Bloomberg

A tax reform hatched in the Shanghai free-trade zone aimed at encouraging entrepreneurs is being applied across the mainland.

17 Apr 2015 - 3:58pm

Iron ore price falls more after Beijing's tax relief but steel mills get boost from support policies

Iron ore prices fall further after the mainland slashed the resources tax for miners as worries over a supply glut deepen. Photo: AFP

Beijing has cut power prices for manufacturers and commercial firms and slashed the resources tax for iron ore miners in the latest measures to support the slowing economy, but the move saw iron ore prices fall further as worries over a supply glut deepened.

17 Apr 2015 - 4:04pm

Asia dominates US probes into transnational corporate corruption

US regulators are conducting more transnational corporate corruption investigations in Hong Kong and China. Photo: Reuters

US regulators are conducting more transnational corporate corruption investigations in Asia, including Hong Kong and China, than in other regions, a study by an international law firm has found.

17 Apr 2015 - 3:58pm

More easing in QFII and RQFII likely

The mainland's investment schemes may see more changes. Photo: Reuters

The mainland's investment schemes that allow foreign investors to trade its stocks and bonds are expected to see big changes in the coming months, with some key obstacles to be removed to help Beijing attract more capital.

17 Apr 2015 - 3:58pm

China's securities watchdog disciplines six more brokerages for violating margin trading rules

Violations have helped fuel speculation. Photo: Reuters

The mainland's securities regulator has punished six brokerages, including Great Wall Securities and Huatai Securities, for violating rules in their margin trading businesses.

17 Apr 2015 - 3:58pm

Capital buffer pressures build for Asia banks

HSBC is among banks designated as domestic systemically important banks last month and will be required to hold higher T1 ratios than other lenders. Photo: Nora Tam

Asian banks are bracing for the impact of new capital adequacy rules, even if the region's regulators choose not to follow global proposals on total loss-absorbing capacity, or TLAC.

Lenders in Asia have been largely exempt from the debate raging in Europe and the United States over TLAC capital buffers, which aim to prevent taxpayer-funded bailouts of banks deemed too big to fail.

17 Apr 2015 - 3:58pm

Hong Kong securities watchdog fines Merrill Lynch HK$2 million

SFC found that Merrill Lynch held 14,181 contracts in the Hang Seng China Enterprises Index, well above the limit of 12,000. Photo: Bloomberg

Hong Kong's securities watchdog fined Merrill Lynch Far East HK$2 million for violations by the bank of rules on position limits in its futures trading in 2013, the third time in five years Merrill has been fined by the agency for breaches of its rules.

17 Apr 2015 - 3:58pm

China's deposit insurance scheme seen putting pressure on smaller lenders

Competition for deposits has intensified after Beijing signalled it was moving closer to lifting the long-standing cap on the interest rates banks can offer on deposits. Photo: AFP

Smaller banks in China are sweating on the intensified squeeze on margins that is set to come with the kick-start of a deposit insurance scheme on May 1.

17 Apr 2015 - 3:58pm

China mutual funds join ride on through train

Interest in Hong Kong shares under the stock connect scheme has been lukewarm. Photo: Edward Wong

China mutual funds join ride on through train

17 Apr 2015 - 3:58pm

Hong Kong regulator SFC vows action on false short-seller reports

The SFC says investors need protection from the use of misleading or false publications that drive down share prices. Photo: Bloomberg

The Securities and Futures Commission vows tough action on short sellers using misleading reports to drive stocks down and profit.

The SFC declined to say if it would take action on individual cases, but executive director of enforcement Mark Steward has publicly spoken out about the crackdown on misleading research reports targeting locally listed companies.

17 Apr 2015 - 3:58pm

Trading desks to feel more pain as investment banks shrink again

Royal Bank of Scotland is expected to shrink by 43 per cent in the next two years. Photo: EPA

Investment banks are likely to shrink by a further 10 to 15 per cent in the next two years as they cut back their trading desks due to the impact of tougher regulations.

That will reduce market liquidity and could raise trading costs for asset managers, forcing them to invest more in trading capabilities, according to a study by Morgan Stanley and consultancy Oliver Wyman.

17 Apr 2015 - 3:58pm

China mulls tighter rules on booming P2P lending business

Lufax was among 354 firms put on a "blacklist" by rating agency Dagong Global Credit Rating last week. Photo: SCMP Pictures

China eyes tighter rules on P2P lending business

17 Apr 2015 - 3:58pm

Lessons from the crisis: Will China open the broking floodgates to banks?

Beijing regulators need to learn lessons from US financial history. Photo: AP

The hope is that the global financial crisis spooked China out of cooking up its own opaque congee of derivatives, bond insurance and colossal banks.

The fear, though, is that mainland regulators walked away with too few lessons from the crisis and that the world's second-largest economy may deregulate itself into a similar fiasco.

17 Apr 2015 - 3:58pm

Foreign banks may be subject to future UK stress tests

This year, the US units of Deutsche Bank and Spain's Banco Santander were the only two banks of 31 to fail the stress tests run by the Federal Reserve. Photo: AP

The British units of foreign banks could be required by regulators to submit to annual health exams for the first time, banking and industry sources said, potentially bringing Britain's policies into line with those of the US Federal Reserve.

17 Apr 2015 - 3:58pm