The APAC banking outlook remains broadly stable despite growing geopolitical risks, although Asia-Pacific banks could face an additional USD180bn in credit losses if conflict in the Middle East persists, according to S&P Global Ratings. The warning forms part of the agency's latest midyear assessment of regional banking conditions. S&P said that 92% of Asia-Pacific bank ratings continue to carry stable outlooks, reflecting expectations that credit ratings will remain largely

Thailand's newly licensed virtual banks are expected to expand cautiously during their initial years of operation as regulators prioritise financial stability and prudent risk management, according to market analysts. The Thailand virtual banks framework requires institutions to undergo a restricted operating phase lasting between three and five years before receiving full licences. Under regulations issued by the Bank of Thailand, new virtual banks must maintain paid-up capi

China's new outbound investment rules, effective from July 1, are expected to reshape rather than reduce overseas expansion by Chinese companies using Singapore as their regional base, according to entrepreneurs, investors and advisers. The China outbound investment rules introduce more comprehensive supervision while maintaining support for international business expansion. The regulations establish "full-process supervision" over outbound investments and extend national sec

Singapore is establishing a Future of Finance Institute to accelerate financial innovation through greater adoption of artificial intelligence, tokenisation and emerging financial technologies, the Monetary Authority of Singapore announced. The Singapore financial innovation initiative is intended to help transform successful pilot projects into large-scale commercial deployment. The institute will bring together financial institutions, fintech firms, technology companies and

Hong Kong is preparing further legal and regulatory enhancements to support wider adoption of distributed ledger technology within its fixed-income markets following completion of the first phase of a government-led review. The Hong Kong tokenised bonds initiative aims to strengthen the city's position as a leading digital capital-markets centre. The Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority concluded that the existing legal framework is

China’s National Audit Office has identified significant China financial irregularities involving several leading state-backed financial institutions, reinforcing Beijing’s campaign to strengthen governance and reduce systemic financial risks. The findings involve Bank of China, Agricultural Bank of China and China Everbright Group. According to the audit, Bank of China used affiliated financial institutions and nominal employee investors to classify 11 private investment fun

South Korea will continue pursuing inclusion in MSCI’s developed-market index after the country remained classified as an emerging market because of unresolved foreign-exchange restrictions. The South Korea MSCI decision highlights continuing concerns among international investors over market accessibility despite ongoing regulatory reforms. MSCI said limited offshore convertibility of the Korean won and insufficient onshore liquidity during extended foreign-exchange trading

China is proposing significantly tougher sanctions for accounting firms involved in fraudulent corporate reporting as regulators intensify efforts to improve market integrity and investor confidence. The proposed China auditor penalties form part of a wider campaign targeting financial misconduct among listed companies and market intermediaries. Under draft amendments to the Certified Public Accountants Law, the maximum fine for issuing false audit reports would increase from

Hong Kong’s securities regulator has called on investment firms to strengthen asset manager stewardship practices, arguing that active engagement with investee companies is essential to maintaining the city’s competitiveness as a global wealth-management centre. Securities and Futures Commission chairman Kelvin Wong Tin-yau said stewardship should be regarded as a professional responsibility rather than an optional activity. Wong noted that Hong Kong has overtaken Switzerland

Moody’s Ratings has downgraded the Philippine banking outlook to negative from stable, citing risks from higher oil prices, inflation pressures and weaker economic momentum linked to geopolitical tensions in the Middle East. The revised Philippine banking outlook reflects concerns that banks may face slower credit growth and deteriorating asset quality over the coming year. The ratings agency said rising energy costs and inflation could weaken consumer spending, business conf

China has unveiled a comprehensive 15-point programme aimed at strengthening foreign capital inflows and improving the business environment for international investors. The China foreign investment plan includes measures to expand market access, facilitate fundraising and support foreign participation in domestic capital markets. The initiative, jointly released by the commerce ministry, state planner and finance ministry, covers sectors including finance, services, pharmaceu

South Korea’s financial regulator is considering measures to reduce market volatility after leveraged semiconductor ETFs contributed to sharp increases in speculative trading activity. Financial Supervisory Service Governor Lee Chan-jin said authorities were reviewing possible stabilisation measures and acknowledged that the recent introduction of the products may have been rushed. The leveraged semiconductor ETFs are linked to shares of Samsung Electronics and SK Hynix, two

Thailand is reviewing its investment promotion framework following the introduction of a top-up tax designed to comply with OECD global minimum tax rules. The Thailand global minimum tax regime allows authorities to collect additional taxes from large multinational companies whose effective tax rates fall below the international minimum threshold of 15%. Finance Ministry officials are meeting with government agencies and the Board of Investment to assess how existing incentiv

AmCham Taiwan has renewed calls for a long-awaited Taiwan US tax deal, arguing that progress on the issue could significantly increase investment and trade between the two economies. The proposal gained fresh attention following the conclusion of a post-tariff trade arrangement between Taipei and Washington earlier this year. AmCham Taiwan president Carl Wegner said the Taiwan US tax deal would be a key topic during meetings with US officials in Washington. Taiwan has long so

Thailand is continuing efforts to establish itself as a regional financial centre, with officials reviewing draft legislation designed to attract investment and streamline regulation. The Thailand financial hub initiative remains a government priority despite delays in advancing the proposed Financial Hub Act through parliament. Fiscal Policy Office director-general Vinit Visessuvanapoom said authorities are reassessing the draft law and identifying measures that can be imple

China has unveiled new measures to accelerate yuan internationalisation while maintaining vigilance against financial risks, signalling a continued commitment to opening its financial markets. Speaking at the Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng outlined a series of initiatives aimed at strengthening offshore yuan usage and liquidity management. A key element of the yuan internationalisation strategy is the authorisation of six major state

Vietnam has introduced a stricter framework governing private corporate bond offerings and overseas bond issuance by domestic companies, strengthening oversight of how proceeds are used and improving issuer accountability. The Vietnam corporate bond rules came into force on June 5 under Decree No. 200/2026/ND-CP. Under the Vietnam corporate bond rules, proceeds may only be used for disclosed purposes, including investment projects, restructuring the issuer’s own liabilities a

Mirae Asset Securities has apologised after failing to secure an allocation of SpaceX shares despite collecting substantial investor orders for the offering. The Mirae Asset SpaceX IPO controversy has prompted regulatory scrutiny and raised questions about investor disclosures and allocation processes. According to Reuters, the brokerage gathered approximately USD500m in orders from South Korean investors but did not receive an allocation from the US lead underwriter, despite

Singapore’s revised framework for single-family offices officially took effect on June 15, simplifying compliance requirements for firms operating in the city-state. The Singapore family office framework changes are designed to reduce administrative burdens while maintaining regulatory oversight. Under the revised Singapore family office framework, eligible single-family offices are required only to notify the Monetary Authority of Singapore of their operations, maintain an a

Hong Kong and Cyprus have signed a comprehensive avoidance of double taxation agreement aimed at strengthening bilateral trade, investment and cross-border business activity. The Hong Kong Cyprus tax agreement is the city’s 58th such treaty and its third concluded this year. Financial Services and Treasury Secretary Christopher Hui said the Hong Kong Cyprus tax agreement will clarify taxing rights between the two jurisdictions and help investors avoid double taxation. Hong Ko