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By Lianting Tu and Carrie Hong In China, bankers and traders don’t just hit the phones or send an email when they have a deal to sell. They take to WeChat. Regulators elsewhere may be clamping down on the financial industry’s use of private messaging apps, but in the world’s second-largest economy the practice is flourishing. Players in China’s $11 trillion bond market use personal accounts on WeChat and QQ -- apps owned by Chinese tech giant Tencent Holdings Ltd. -- for everything from distributing research to soliciting orders. While it’s not illegal to use social media to conduct business, most developed-market regulators require records to be kept, which is where China’s embrace of this new technology can get problematic. A banker in Hong Kong found that out the hard way when he was censured by the city’s securities watchdog last week for accepting order instructions by WeChat and mobile phone. The use of social-media tools in … [Read more...] about In China, trading begins on WeChat

Now Nigel Farage’s Brexit Party is set to storm to victory in the UK’s European elections, riding a wave of anger at the failure of Prime Minister Theresa May to take the country out of the European Union. The country’s two main parties, Ms May’s Conservatives and opposition Labour, haemorrhaged support while smaller pro-EU parties did well, with the Liberal Democrats projected to come in second place. In the UK, voting in the European Union election was coloured by a backdrop of seemingly endless Brexit paralysis. Nearly three years after the UK voted to leave the EU, it remains a member and its politicians are still arguing over how, when and if the country will leave. The original exit deadline in April passed by, with MPs rejecting Ms May’s deal, and her back up option of exiting with “no deal”. Brexit’s deadline was then extended to October 31. Ms May, who has failed to broker a workable Brexit plan, has now agreed to stand down on … [Read more...] about Brexit Party to wipe the floor at EU elections

Leader of the House of Commons Andrea Leadsom said she was resigning because she did not believe May’s Brexit plan delivered on voters’ decision to leave the European Union. Ms May is battling to stay in office amid demands she resign over Britain’s stalled departure from the bloc. Ms Leadsom has been a strong pro-Brexit force in the government. She delivered a stinging resignation letter to Ms May, signed in turquoise ink — the colour of the Brexit Party. She lashed Ms May for “uncomfortable compromises” and said she was “fundamentally opposed” to the latest bill. The resignation comes just a day before the European elections, which the UK is embarrassingly taking place despite the Brexit vote — because of a six month delay to Brexit until October 31 this year. Downing Street published a statement expressing disappointment with Ms Leadsom’s decision which said she had “served with distinction”. A spokesman said … [Read more...] about British Prime Minister Theresa May faces another coup attempt

HKMA chief: Countercyclical capital buffer ratio for banks may be cut further The Hong Kong Monetary Authority will adopt necessary measures including a possible further cut of the countercyclical capital buffer ratio for banks to maintain financial stability amid a deteriorating economic outlook, the authority's chief executive said. Maintaining the soundness and stability of Hong Kong's financial system has been the most important task as the city is facing a complex and volatile internal and external environment, said Eddie Yue Wai-man, HKMA's chief executive, at a press briefing in Beijing on Wednesday. "If the economy further declines and the property market suffers correction, there is room for us to further lower the CCyB (countercyclical capital buffer)," Yue said. "Maintaining public and market confidence is crucial for us to keep the financial system stable." The HKMA cut the CCyB ratio to 2 percent from 2.5 percent in October citing that economic indicators have signaled … [Read more...] about HK plans to bolster financial stability

50-60% of the excesses in the midcaps has been corrected. There is still way to go but you are going to see very big rises very fast, says big bull Rakesh Jhunjhunwala, Partner, Rare Enterprises, in an exclusive interview with Nikunj Dalmia of ET Now. Edited excerpts: Looking at the state of the market, do you think we are in a bear market? I do not agree that we are in a bear market. In any market, at any stage, some stocks are going to underperform and some are going to outperform. The index went up from 4700-4800 to 11000. Today also it is around 11,000, peak of 11,300. Now, the market according to me, is consolidating to make the second phase of a rise. There is polarisation in the market, that polarisation will correct itself but there were a lot of excesses in the midcaps, matlab 40 PE kya hota hai (What is 40 PE)? It is that kind of PE that quality companies should carry. The nature of their business, their corporate governance, their cash profile, deserves that kind of PE. I … [Read more...] about What bear market? We are in a state of consolidation: Rakesh Jhunjhunwala, Rare Enterprises