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Daily Dispatches – UK to offer Chinese investment banks incentives

Britain’s Finance Minister George Osborne, who along with London mayor Boris John is on a charm offensive in China to attract investment to the UK, is apparently going to  announce special terms to make it easier for Chinese investment banks to expand in the UK.

The Business Times quotes a report in the Financial Times saying that Osborne will offer to break down regulatory barriers to reinforce London’s position as a global hub for the Chinese currency.

Apparently Osborne will offer leading Chinese banks discussions with UK’s Prudential Regulation Authority (PRA) to let them operate UK branches that largely follow Chinese regulations and are subject to light PRA supervision.

The end is nigh

And not for the world – hopefully, ‘just’ the debt default crisis that has the world sitting on the edge of its seat. Reuters reports that US politicians have hinted that a resolution to the deadlock over government spending is near – as soon as today, in fact, but with no indication of who has made the most concessions – President Barack Obama or the Republican-led Congress.

The US Treasury Department estimates it will reach a US $16.7 trillion borrowing limit on October 17.

Banking on business trusts in Hong Kong

The Wall Street Journal says that Hong Kong wants to become a destination for business-trust listings in the region, with an electricity company and a hotel operator aiming to raise up to US$6 billion by the end of 2013.

Hong Kong is home to just two business trusts now compared to 15 in Singapore, the dominant regional market for such listings.

Myanmar joins World Bank club

Myanmar has become a member of the Multilateral Investment Guarantee Agency – part of the World Bank – in a move that could support private-sector financing in the country, reports the Wall Street Journal.

But investors in Myanmar face a number of hurdles – inadequate infrastructure, frequent power shortages, high land costs, a scarcity of skilled workers, and lack of clarity about regulations and  how they will be implemented in practice.

Singapore banks face knock from regional franchises

Analysts say that Singapore banks’ earnings could be hit by expected lower translated earnings from their regional franchises.

Quoting a CIMB report, Singapore Business Review said that investors in Singapore banks will be increasingly focused on signs of credit quality deterioration in the regional markets.

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