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Daily Dispatches – China expands local capital markets

China’s cabinet has unveiled plans to set up more private banks to boost financial support for cash-starved smaller firms, in the latest bid to bolster the slowing economy, according to Reuters.

“We will actively develop small-sized financial institutions and open up the channel for private capital to enter the financial sector,” the cabinet said in a set of guidelines published on the central government’s website.

People Daily says that access to finance will be moderately relaxed for growth- and innovation-based enterprises, while refinancing for listed small businesses will also be on the agenda.

More trials for privately-placed bonds for SMEs will be encouraged in order to increase bond issuance and build a quick and flexible financing mechanism.

Getting tough on foreign banks

While the Chinese government is loosening the regulatory regime in the country for domestic banks, things are looking tougher for foreign banks. Asian Banking and Finance reports that the China Banking Regulatory Commission is revising rules on establishing new banks that will see stricter requirements for foreign banks.

A draft of the revised rules provide that foreign financial institutions that want to establish new commercial banks or become strategic investors in Chinese banks must meet new requirements on capital adequacy.

Ex-Goldman staffers set up hedge fund in Singapore

Bloomberg reports that nine former Goldman Sachs employees, including three MDs, have set up Golvis Investment Pte, an Asia multi-strategy hedge fund, in Singapore. The fund will invest in all asset classes with an initial focus on Japan.

Kiwis migrate home

New Zealand’s growth rate is forecast to outpace Australia’s for the next two years, helping stem an exodus that resulted in the highest proportion of its people living overseas in the developed world after Ireland, according to Bloomberg. But the country’s Reserve Bank is not thrilled: the returnees are fuelling an already over-heated housing market.

CICC IPO on the cards

China International Capital Corp, the first Sino-foreign investment bank, is considering going to the markets to replenish its capital, enhance its competitiveness and strengthen its incentive scheme, according to Finance Asia.

KWAP to hire hedging team

Malaysia’s USD$30 billion state pension fund KWAP is planning a hiring spree to improve its internal risk management and investment expertise as it aims to raise its foreign exposure. AsianInvestor reports that the organisation wants to create a team for portfolio hedging. The risk team is set to double in the next three years from its current six employees.

 

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