KUALA LUMPUR: Bursa Malaysia Securities Berhad has publicly reprimanded Perak Corporation Bhd and seven of its former directors for breaching of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR). [...]
Datuk Kamarudin Meranun speaks during a press conference after the official launch of the Medical Travel Market Intelligence Conference (insigHT2018) in Kuala Lumpur September 3, 2018. — Picture by Mukhriz Hazim
KUALA LUMPUR, April 12 — A RM3.64 million settlement with the Securities Commission (SC) was paid off by AirAsia Group Bhd co-founder and executive chairman Datuk Kamarudin Meranun for the purchase of 5.55 million Malaysian Airline System Bhd (MAS) shares in August 2011.The Edge today reported that Kamarudin owns a 32.18 per cent stake in AirAsia through his equity interest in Tune Live Sdn Bhd and Tune Air Sdn Bhd.The SC said Kamarudin had on April 2 agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against him for acquiring the MAS shares.The shares acquisition was purchased through the account of Nor Ashikin Khamis and Malizan Mahmood while in possession of inside information contrary to Section 188(2) of the Capital Markets and Services Act 2007 (CMSA).“The settlement was reached following letters of demand sent by the SC pursuant to its civil enforcement powers under the securities laws,” the SC was quoted as saying. “The amount disgorged from Datuk Kamarudin Meranun is equivalent to three times the difference between the price at which the shares were acquired and the price at which the shares would have been likely to have been acquired at the time of the acquisition, if the information had been generally available,” it explained.The regulator said a director of AmanahRaya Investment Management Sdn Bhd, which is a wholly-owned subsidiary of Amanah Raya Bhd, who was named as Abdul Radzim Abdul Rahman, and one Mohamed Radzif Mohamed Shamsudin had also entered into a settlement on April 9 with the SC for the sum of RM750,000 each.The SC said both Radzim and Radzif had acquired 3.16 million and 2.5 million MAS shares respectively.It was reported that the monies recovered will be applied in accordance with Section 201(7) of the CMSA.On August 9, 2011, MAS had entered into a Comprehensive Collaboration Framework with AirAsia and AirAsia X Sdn Bhd, which had involved Khazanah Nasional Bhd and Tune Air Sdn Bhd.Khazanah and Tune Air entered a share swap agreement for the cross-holding of shares, which resulted in the latter obtaining a 20.5 per cent stake in the national carrier while the sovereign wealth fund gained a 10 per cent in AirAsia.The agreement had set MAS as a full-service premium carrier while AirAsia and AirAsia X would be regional low-cost and medium-to-long haul low-cost carriers respectively.The deal was, however, aborted eight months late following public outcry. [...]
A sign is displayed in the reception of the Sydney offices of Goldman Sachs in Australia, May 18, 2016. ― Reuters pic
SINGAPORE, March 14 — Malaysia’s securities commission said today that it has issued a show-cause letter to Goldman Sachs, which is embroiled in multi-jurisdictional investigations into Malaysian state fund 1Malaysia Development Berhad (1MDB).A show-cause letter typically requires the recipient to explain why they should not be subject to disciplinary action.“We have issued a show cause to Goldman Sachs,” the chairman of the Malaysia Securities Commission, Syed Zaid Albar, said at a press conference today.However, he did not say when the letter was issued or provide any details about its contents. If the commission finds a financial institution violated regulations, its powers include issuing fines or revoking operating licences.Goldman Sachs did not immediately respond to a request for comment.Apart from facing civil lawsuits, Goldman Sachs is being investigated by Malaysian authorities and the US Department of Justice for its role as underwriter and arranger of three bonds that raised US$6.5 billion (RM27 billion) for 1MDB.Goldman Sachs has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB had lied to the bank about the use of the proceeds from the bond sales. — Reuters [...]
HONG KONG: Chinese securities firms are racing to prepare themselves for an influx of foreign competitors, as Beijing opens up the domestic market to help resolve the trade war with the United States. [...]
HONG KONG • Citigroup Inc is considering ending its securities joint venture (JV) in China as it weighs trying to find a new local partner that would let it take majority control of such an entity, according to people familiar with the matter.
New York-based Citigroup has held discussions with its existing partner about boosting its stake in the JV — Citi Orient Securities Co Ltd — to 51%, but those talks haven’t led anywhere, the people said. That’s in part because its partner, Orient Securities Co Ltd, has expressed reluctance to sell, they said, asking not to be identified.
Citigroup’s deliberations are an echo of JPMorgan Chase & Co’s move in 2016 to split with its then-JV partner to create a new securities venture. It also illustrates some of the roadblocks facing Western banks as they try to take advantage of new rules allowing them to purchase majority stakes in JVs in the world’s third-largest securities market.
Orient Securities owns 67% of the JV and Citigroup holds the rest. The US bank’s desire to find a new partner stems from wanting control rather than from any disagreements with Orient Securities, the people said. The two partners are still in discussions and Citigroup hasn’t made any final decision, according to the people.
“Citi is making strong progress organically in China and we are committed to further growth and are pursuing multiple engines of growth including with a local market JV,” the bank said in an emailed statement, without elaborating. Orient Securities declined to comment.
Citigroup has also cooled on the prospect of boosting its stake because it wants to apply for a secondary-market trading licence that the JV doesn’t have, the people said. Doing so would put it in direct competition with Orient Securities. Setting up with new partners that aren’t in the brokerage business would help get around that issue.
Citi Orient’s revenue dropped 10% to 1.04 billion yuan (RM628.5 million) last year, a decline the company attributed to a tightening regulatory environment and China’s efforts to control indebtedness. Meanwhile, Orient Securities’ revenue surged 53%, driven by brokerage, sales and trading and investment management.
Citigroup generates just over US$1 billion (RM4.19 billion) of revenue a year from its China-based clients, one of the people said.
Citigroup was a late entrant into China’s securities market after trying for years to find a local partner. It opened its JV in 2012, the year the Chinese government allowed foreign players to boost their stakes to 49%. Lately, the firm has focused on building the rest of its onshore operations, securing several licences for its fixed-income business that’s separate from the JV.
Authorities last year announced that they would let overseas partners take majority stakes, and UBS Group AG, Nomura Holdings Inc and JPMorgan have applied for permission to do so, according to regulatory filings. Morgan Stanley has said it’s in talks to take a 51% stake in its local venture, but has yet to file a formal application.
How Beijing decides to award the first approvals to take 51% stakes will shed light on the extent to which US President Donald Trump’s trade war with China has hurt the prospects of US firms. While China’s market has short-term challenges, there’s nevertheless a vast opportunity in a nation of 1.4 billion people with an economy growing at a more than 6% annual pace.
Citi Orient ranks 12th this year in underwriting equity offerings in China, behind Goldman Sachs Group Inc’s local entity but ahead of those backed by UBS and Deutsche Bank AG, data compiled by Bloomberg show. — Bloomberg
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var EMOTE_TEXT = ["HAPPY","INDIFFERENT","AMUSED","EXCITED","ANGRY","SAD"]The post Citigroup to weigh new China securities JV appeared first on The Malaysian Reserve. [...]
KUALA LUMPUR: Bursa Malaysia Securities has queried Merge Energy over the sharp rise in its share price recently. [...]
KUALA LUMPUR (July 9): Foreign ownership of Malaysian government and corporate bonds and bills dropped 3.5 percent to RM185.8 billion in June from previous month,... [...]