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Asian Financial News from John Lothian News – July 25, 2017

Lead Stories

HNA unveils New York-based charity as controlling shareholder; Acquisitive Chinese investor’s surprise revelation as lenders turn off taps
JOYCE HO, Nikkei
Acquisitive Chinese outbound investor HNA Group has openly disclosed its shareholding structure for the first time amid rising concerns that Beijing’s deleveraging campaign might choke lending to the company which has largely fueled its expansion through debts and collateralization.
https://goo.gl/M6Feue

Column: Time to OK Chinese investors’ controversial Chicago Stock Exchange deal
Robert Reed – Chicago Tribune
The time has come for federal regulators to approve a small but highly controversial local business deal — the purchase of the Chicago Stock Exchange by Chinese-led investors.
https://goo.gl/b2tk71

HNA Mystery Man Gives Away a Fortune and Raises Fresh Questions
Bloomberg News
Little-known investor Guan Jun unloads his big HNA stake; Conglomerate is trying to allay concerns about its ownership
Of all the mysteries surrounding HNA Group Co., one of China’s most acquisitive companies, the 29 percent stake held by Guan Jun has been among the most puzzling.
https://goo.gl/yZXPuh

A huge Chinese conglomerate just revealed its ownership — and a lot of governments are watching; HNA Group had its start as a small airline, and has now evolved into a giant, global conglomerate with stakes in big names like Deutsche Bank and Hilton; On Monday, the conglomerate publicly revealed its ownership structure — an unusual move
Sophia Yan – CNBC
A massive private Chinese conglomerate pulled an unusual move on Monday, revealing its ownership structure after striking multi-billion dollar deals that have raised questions about corporate governance, strategic motivations, financial health and who exactly is calling the shots.
https://goo.gl/1hrDfK

New Challenge to U.S. Power: Chinese Exceptionalism; Once-reticent citizens now see their country as ascendant—and America in decline
By Te-Ping Chen and Josh Chin – WSJ
Li Xiaopeng once idolized the West. While a student, he broke through China’s internet firewall to read news from abroad, revered the U.S. Constitution and saw the authoritarian Chinese government as destined to fade away.
https://goo.gl/DCUFhR

Australian Commodity Powerhouse Faces Post LNG Investment Slump
By Perry Williams and Michael Heath – Bloomberg
Completion of Gorgon project dampens West Australian outlook; Value of project investment falls to lowest level since 2008
The startup of Chevron Corp.’s mammoth $54 billion Gorgon gas export plant last year has left Western Australia grappling with a slowdown as a decade-long investment bonanza subsides.
https://goo.gl/C493XL

Investors grapple with Indonesian rice scandal; Tiga Pilar denies fraud accusations after police raid warehouse
WATARU SUZUKI and ERWIDA MAULIA, Nikkei
Investors are scrambling to deal with a controversy over Indonesian food producer Tiga Pilar Sejahtera Food after police and government officials confiscated more than 1,000 tons of rice from its warehouse outside Jakarta, accusing the company of inflating prices by falsely labeling inexpensive rice as premium brands.
https://goo.gl/GvHHXi

COMBUS to provide Australian catastrophe models on the Boat Oasis platform
Boat – A Cinnober Company
Boat Oasis continues to strengthen platform with the addition of COMBUS’s catastrophe simulation models for Australia.
https://goo.gl/Dkzx9Z

Exchange News

Adjustment of Digital China Structured Products and Futures
HKEX
Hong Kong Exchanges and Clearing Limited has announced the arrangements for the adjustment to Digital China Holdings Ltd (Digital China) structured products and futures to account for Digital China’s rights issue.
https://goo.gl/Mz2pGj

List of Choices by Mothers-listed Companies
JPX
https://goo.gl/2eKMCb

Salaries of NSE, BSE officials may be set as per Companies Act rules; Sebi is looking to align salaries paid to directors and key management personnel at stock exchanges in line with provisions of the Companies Act
Jayshree P. Upadhyay – Livemint
The Securities and Exchange Board of India (Sebi) is looking to align the remuneration paid to directors and key management personnel at stock exchanges in line with provisions of the Companies Act, two people with direct knowledge of the matter said.
https://goo.gl/Szybu3

NSE to conduct live trading from disaster recovery site
The Times of India
The National Stock Exchange (NSE) today said it will conduct two-day live trading sessions starting on August 1 from its disaster recovery site in Chennai.
https://goo.gl/1XrCK4

FinTech News

Over half of fintech funding globally in Q2 went to Asia, thanks to Paytm deal
Ishita Russell – Dealstreetasia.com
Driven by a mega $1.4 billion-investment by Softbank, Asia surpassed the US to account for over half of the funding raised by venture-backed financial technology (fintech) firms in the second quarter of 2017.
https://goo.gl/4TGFTT

Regulatory News

In BOJ minutes, members contest disclosure of exit strategy impact
Reuters
Bank of Japan policymakers contested how much information to disclose about a possible exit from quantitative easing, with several worrying about the risks of doing so given the BOJ is still far off its 2 percent inflation goal, minutes of the central bank’s June 15-16 meeting showed on Tuesday.
https://goo.gl/KZmu7b

Financial Choice pays $21,600 in penalties for false and misleading representations
ASIC
Financial Choice Pty Ltd (Financial Choice), an Australian financial services provider, has paid two ASIC infringement notice penalties totalling $21,600, after making misleading representations in marketing emails sent to consumers and on its website.
https://goo.gl/7fcm98

Investing News

Foreign investors are cashing in on an emerging market with a booming currency; Funds are flowing into Malaysia as the economy and local currency, the ringgit, strengthen, market participants said; Upcoming elections present risks, but investors should see volatility as an opportunity to cash in on a Southeast Asian growth story, they said
Yen Nee Lee – CNBC
Things are looking up for Malaysia, with more foreign investors cashing in on the country’s improving economy and strengthening currency, market participants told CNBC on Tuesday.
https://goo.gl/7ZRh1z

Toyota Nears Technological Breakthrough in Electric-Car Batteries; Company is working on a new type of battery that could hold a higher charge, as it accelerates its push to build all-electric vehicles
By Sean McLain – WSJ
Toyota Motor Corp. TM 0.90% said Tuesday it was nearing a major technological breakthrough in electric-car batteries, as the world’s second-largest car maker by sales accelerates its push to build all-electric vehicles.
https://goo.gl/jf4NtQ

Self-Driving Buses and Robot Aides Could Double Singapore’s Growth Rate; Report finds machines might overcome fallout from aging workforce.
By Melissa Cheok – Bloomberg
The rise of the machines is coming. In technology-proficient Singapore, their integration into the economy could help the domestic growth rate to almost double and significantly lift labor productivity, according to a report by consultancy Accenture.
https://goo.gl/TrAxmr

Rich Singapore Investors Stuck as Bond Restructuring Drags
By Denise Wee – Bloomberg
Lack of specialist means that restructurings drag out: PwC; Bond defaults at unprecedented S$1.35 billion since Nov. 2015
Keith Kueh was expecting Pacific Andes Resources Development Ltd. to pay back the company’s bonds last year so he could finance his son’s college bill and his own retirement. Now it’s 18 months after the Singapore-listed fishing company didn’t honor some obligations and he hasn’t gotten his money yet.
https://goo.gl/ai9qTL

India’s Nifty Little Changed After Briefly Hitting 10,000 Mark
By Nupur Acharya – Bloomberg
India’s NSE Nifty 50 Index closed little changed after briefly climbing above 10,000 for the first time.
https://goo.gl/L9caGj

Why investors are watching this giant state-owned firm; Although the company says talks are ongoing, last week saw reports that a number of private tech giants would jointly invest $12 billion into China Unicom; Investors are watching the company closely for what it says about the future of China’s state-owned enterprises — and the Chinese economy
Sophia Yan – CNBC.com
Giant state-owned telecom China Unicom said Sunday that talks with potential strategic investors are ongoing and that no binding agreements have yet been reached
https://goo.gl/UzqWys

China’s HNA taps Goldman for IT firm Pactera’s US listing
DealStreetAsia.com
Beijing-based IT outsourcing firm it bought from private equity firm Blackstone, sources familiar with the matter said.
https://goo.gl/vZMBzP

Credit Suisse, Morgan Stanley Among Best Asia Trading Firms
Institutional Investor
http://bit.ly/2uxGVKw

Miscellaneous News

Japan’s Doomsday Preppers Are Buying $19,000 Bomb Shelters; North Korea’s missile launch sends demand surging.
By Justin Mattingly – Bloomberg
Business has never been better at Atlas Survival Shelters, which ships bunkers to customers around the world from its U.S. factories. Among the best sellers: the BombNado, with a starting price of $18,999.
https://goo.gl/tUYrc3

Russia and China Hold First Joint Naval Exercises in Baltic Sea
By Anthony Halpin and Ott Ummelas – Bloomberg
Warships train with ‘artillery fire’ at targets, Tass reports; Lithuania says it’s monitoring drills and reporting to NATO
Russian and Chinese naval warships are holding joint exercises in the Baltic Sea for the first time, underscoring deepening military cooperation between the two powers.
https://goo.gl/Ng8t8w

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Lothian is executive chairman and CEO of John J. Lothian & Co. and editor of the John Lothian Newsletter. He publishes MarketsWiki.com, MarketsReformWiki.com, MarketsWikiEducation.com, JohnLothianNews.com and three industry newsletters.