Borneo Bulletin, Tuesday 28 February 2017
KUALA LUMPUR (Bernama) – The banking sector
in Malaysia will see a slowdown in the next 12 to
24 months in line with the slowdown in the Gross
Domestic Product (GDP).
HSBC Bank Malaysia Chief Executive Officer
Mukhtar Hussain said the economic condition
was now more subdued than in previous years
and this had impacted capital investment.
“However, the banking system, which is well
regulated, capitalised and prudent with strong
corporate governance, will help institutions
manage well during these times,” he told a press
conference here yesterday on shaping a different
He said the banking system would improve
in line with the underlying improvement in the
economy along with initiatives to support the
A monorail train passes by the city centre at a shopping district in Kuala Lumpur
Banking sector in
Malaysia to see a
BEIJING (AFP) - China’s top securities regulator has pledged
to speed up approvals of initial public offerings (IPOs), as
the government seeks to attract capital and boost domestic
Buoyed by the capital market’s recovery from a 2015 rout,
the China Securities Regulatory Commission (CSRC) on Sunday
indicated it would loosen its grip on the nation’s stock markets.
The CSRC decides which companies offer shares and when,
as well as setting guidelines for the number of shares and their
price - all of which are determined by the market in other
Regulators responded to the equities rout in the summer of
2015 by freezing new IPOs in an effort to stabilise stock prices,
but CSRC chairman Liu Shiyu vowed to end this practice and
introduce “new progress and breakthroughs”.
More than 600 companies seeking to list in the market have
struggled with long wait times, followed by seemingly arbitrary
Liu said faster approvals, particularly for companies in
poverty-stricken counties, will attract new capital and boost
“Liu seems to be the first CSRC chief to publicly denounce
the practice of shutting down the IPO market whenever there
is a crisis,” Dong Dengxin, a finance professor at Wuhan
University of Science and Technology, told the official Xinhua
While the regulator signalled a willingness to allow the
market to play a larger role in share sales, it has also cracked
down on illegal activities by “barbarians”.
Mainland Chinese stock exchanges have an unusually
high proportion of non-professional investors and have been
compared to “casinos”, with insider trading and dramatic
swings in share prices seemingly unconnected to underlying
“There is only a half-step distance between being a financial
mogul and a financial crocodile,” Liu said.
Li Chao, the CSRC’s deputy head, said closer supervision -
in the form of compliance risk management and standardised
banking businesses - will help prevent a repeat of the stock
market turbulence of 2015.
Following a slump that saw the Shanghai stock index tumble
nearly 40 per cent in a little more than two months - after
peaking in mid-June that year - several investment executives
were investigated on suspicion of insider trading.
Last month, former star hedge-fund manager Xu Xiang was
jailed for five and a half years.
His was the first insider trading case to be brought to Chinese
court and involved more than 40 billion yuan ($5.8 billion),
financial magazine Caixin reported.
The CSRC’s planned reforms come as the government tries
to staunch a flood of capital heading overseas as investors look
for better returns, with interest rates expected to rise, putting
pressure on the yuan and threatening the economy.
After Chinese firms went on a multi-billion-dollar foreign
acquisition spree last year, the government responded by
blasting what it called “irrational” spending and started rolling
out new restrictions to curb the outflow of money.
The Shanghai Composite Index ended 0.76 per cent
lower Monday, in line with a sharp sell-off across Asian stock
China Securities Regulatory Commission Chairman Liu Shiyu gestures as he speaks during a press brie ing on the reform,
stability and development of the Chinese capital market, at the State Council Information Of ice in Beijing
China pledges to speed up
approval of stock listings
RIYADH (AFP) - Saudi Arabia on Sunday launched
a parallel equity market designed to boost small
and medium enterprises that closed up 20 per
cent, the maximum allowed in a single day,
The index on the parallel market, Nomu, listing
seven companies, closed at 6,000 points with
trading of 256 million Saudi riyals (about $67
Argaam, a Saudi economicwebsite, put the total
capitalisation of the seven companies trading on
Nomu at 1.8 million riyals ($479 million).
The companies listed are Raydan Restaurants,
Baazeem Trading Company, Arab Sea, Al
Omran Trading, Abdullah Saad Abo Moati, Food
Development Company and Al Samaani Metal.
Argaam said Baazeem was the most active on
Sunday with 2.2 million shares trading hands.
To be listed on Nomu, companies must have
a market value of at least 10 million riyals ($2.7
million), a minimum of 35-50 shareholders and at
least 20 per cent of shares publicly owned.
Firms listing on the oil-rich kingdom’s main
stock market - the Tadawul - must have minimum
capitalisation of 100 million riyals, or 10 times
that of the new platform.
Nomu’s launch was announced last Monday
by Tadawul which said the new equity market
was “an alternative trading platform with lighter
New Saudi stock
market opens with
gains of 20 per cent
LONDON (AFP) - The London Stock Exchange on
Sunday said it is “highly unlikely” it will be able
to meet antitrust conditions set by Brussels for its
tie-up with Deutsche Boerse, throwing the merger
The announcement by LSE, which also operates
the Milan stock exchange, is the latest twist in its
longstanding attempt to merge with the German
stock exchange operator.
The LSE said it had examined the European
Commission’s request to divest its majority stake
in Italian trading unit MTS, concluding it could
not commit to such a request.
“The LSEG Board believes that it is highly
unlikely that a sale of MTS could be satisfactorily
achieved, even if LSEG were to give the
commitment,” LSE said in a statement.
Commission raised new concerns on February 16
about the merger, giving the company a deadline
of midday on February 27 to outline a proposal
for divesting in MTS.
“Based on the Commission’s current position,
LSEG believes that the Commission is unlikely to
provide clearance for the merger,” it added.
LSE says Deutsche
Boerse merger in doubt