Governance

  • The UK shouldn’t chase Spacs

    The UK shouldn’t chase Spacs

    The Financial Conduct Authority’s plan to look at helping US-style special purpose acquisition companies list in London smacks of short-termism. Even in the US, the epicentre of the Spac craze, there is a growing clamour for the Securities and Exchange Commission to toughen listing rules.

  • Cordray to take over $1.6bn federal student loan portfolio

    Cordray to take over $1.6bn federal student loan portfolio

    Richard Cordray has been selected to head the federal student aid office, assuming responsibility over the entire portfolio of federal student loans in the US. With his appointment, the $10,000 student debt forgiveness policy will likely come to fruition, unexpectedly benefiting the sector.

  • Investors ‘disappointed’ by Naftogaz CEO dismissal

    Investors ‘disappointed’ by Naftogaz CEO dismissal

    Market participants on Wednesday called the removal of Andriy Kobolyev as CEO of Naftogaz last week “disheartening”. The Ukrainian government’s meddling in the state-run energy company casts doubt on its commitment to IMF-mandated reform of corporate governance and will weaken Naftogaz’s ability to return to the bond market.

  • The week in review: China’s macro leverage drops, Peking Founder makes restructuring progress, CSRC steps up requirements for pre-IPO education

    The week in review: China’s macro leverage drops, Peking Founder makes restructuring progress, CSRC steps up requirements for pre-IPO education

    In this round-up, China’s macro leverage drops on a year-on-year basis for two consecutive quarters, Ping An Insurance Group plans to invest up to Rmb50.75bn ($7.84bn) in troubled conglomerate Peking University Founder Group, and the securities regulator has put more weight on the pre-listing education process of domestic IPO candidates.

  • Exchange regulators tighten bond issuance rules

    Exchange regulators tighten bond issuance rules

    The Shanghai and Shenzhen stock exchanges have tightened rules for public bond issuance in China’s exchange market, releasing new guidelines that are likely to restrict supply from weaker issuers and deter investment holding companies, local government financing vehicles and real estate developers. Addison Gong reports.

  • FCA looks to loosen research rules

    FCA looks to loosen research rules

    The UK’s Financial Conduct Authority has launched a consultation on proposed cuts to red tape in the capital markets, including the lifting of restrictions on the distribution of bond research, in support of the government’s aim to enhance the country's financial competitiveness.

  • Russian relief as Segezha completes IPO

    Russian relief as Segezha completes IPO

    Segezha, the Russian paper and pulp company, has completed its IPO on the Moscow exchange. The conclusion of the listing was a relief for the company, given fears that it could have been derailed by political tensions between Russia and the US.

  • China-US IPOs are speeding up, not slowing down

    China-US IPOs are speeding up, not slowing down

    Chinese companies have raised equity in the US at a record pace this year. The deal flow has quashed fears that a hostile White House would dissuade China’s hordes of technology startups from listing on the New York Stock Exchange and Nasdaq.

  • UBS hit by bigger than expected Archegos loss

    UBS hit by bigger than expected Archegos loss

    The first quarter results for UBS’s investment bank looked much like a repeat of rival Credit Suisse’s earnings last week, with strong underlying performance marred by a loss stemming from former prime brokerage client Archegos Capital.

  • Can ESG investing fix broken cultures?

    Can ESG investing fix broken cultures?

    Harassment allegations at institutions with social and environmental purposes, from schools to public sector banks, are sobering reminders that ethical investment is not only about how borrowers spend investors’ money: ESG investing should catalyse cultural change across the financial industry. But this will be a long and difficult fight.

  • Governance concerns won't derail Darktrace's IPO

    Governance concerns won't derail Darktrace's IPO

    The corporate governance issues surrounding Darktrace, the UK AI cyber security company that confirmed its intention to float on the London Stock Exchange this week, can be generously described as unusual but they are not a shock to the market, and are unlikely to put investors off completely, providing the company seeks a sensible valuation.

  • Sovcomflot defies Russia sanction risk to come to market

    Sovcomflot defies Russia sanction risk to come to market

    Sovcomflot, the majority state-owned Russian shipping company, defied some market participants' expectations on Tuesday by coming to market to raise dollar debt just days after a fresh wave of US sanctions on Russia.

  • Kakao chairman trims stake after charity pledge

    Kakao chairman trims stake after charity pledge

    The chairman of South Korea’s Kakao Corp has kicked off his official pledge to donate more than half of his wealth to society by raising about W500bn ($448m) from a stake sale in the messaging app on Thursday.

  • Peru bondholders 'complacent' amid LatAm election super-cycle

    Peru bondholders 'complacent' amid LatAm election super-cycle

    Peruvian bonds barely moved this week after a shock in the first round of the country’s presidential elections on April 11, while Ecuador debt reacted spectacularly to a positive electoral surprise on the same day. Yet there are concerns about complacency towards risks in Peru, where a left-wing radical took most first-round votes, and Latin American bond buyers should brace for more volatility as the region faces an exceptionally busy election cycle.

  • PP investors weigh up governance as UK schools face crisis

    PP investors weigh up governance as UK schools face crisis

    Institutional investors are weighing up governance at elite UK private schools after a series of serious sexual assault allegations emerged from the sector. As certain private schools look for new deals to add to the £500m they have already raised, investors are focusing on how schools have handled the ensuing crisis.

  • ‘Russia’s Rubicon crossed’ after Biden sanctions

    ‘Russia’s Rubicon crossed’ after Biden sanctions

    Equity and debt markets were fretting on Thursday over the implications of new US sanctions against Russia. A prohibition of US investment in Russian sovereign bonds marked an escalation in tensions, threatening sovereign borrowing costs. It could also damage Russian companies’ chances of funding in the capital markets, write Mariam Meskin and Sam Kerr.

  • Ukraine central bank chief Shevchenko on independence, IMF cash and PrivatBank

    Ukraine central bank chief Shevchenko on independence, IMF cash and PrivatBank

    Ukraine is once more at the forefront of emerging market investors' worries as military tensions with Russia escalate. Amid the uncertainty, Ukraine is fighting another uphill battle to access IMF funding in order to recover its economy as soon as possible. The governor of the National Bank of Ukraine, Kyrylo Shevchenko, spoke to GlobalCapital about the challenges the country is facing and the importance of central bank independence.

  • Ant unveils business overhaul plan as Beijing tightens screws

    Ant unveils business overhaul plan as Beijing tightens screws

    Chinese financial technology company Ant Group Co will transform itself into a financial holding company as part of a government mandated restructuring that will affect its key payments, consumer lending and wealth management businesses.

  • Alibaba’s HK stock rallies after record fine

    Alibaba’s HK stock rallies after record fine

    Alibaba Group Holding’s shares in Hong Kong closed 6.51% higher on Monday, despite news over the weekend that the technology giant will be hit with a record fine of Rmb18.22bn ($2.8bn) by China’s regulators.

  • China policy round-up: Beijing cracks down on regional financial institutions, Hainan FTP access rules ease up, Guangzhou reveals ambitious GBA development plan

    China policy round-up: Beijing cracks down on regional financial institutions, Hainan FTP access rules ease up, Guangzhou reveals ambitious GBA development plan

    In this round-up, the State Council flags up risks at regional financial institutions in China, measures have been announced to relax market access in the Hainan Free Trade Port, and the Guangzhou government details a plan to develop the financial industry and support cross-border businesses in the Guangdong-Hong Kong-Macao Greater Bay Area.

  • Kangde Xin gets the boot from Shenzhen bourse

    Kangde Xin gets the boot from Shenzhen bourse

    Defaulted bond issuer Kangde Xin Composite Material Co is expected to be delisted from the stock exchange of Shenzhen next month, a move that will end an over two year probe by Chinese regulators into the company.

  • Macquarie sanctioned by Apra over regulatory breaches

    Macquarie sanctioned by Apra over regulatory breaches

    The Australian Prudential Regulation Authority (Apra) hit Macquarie Bank with a A$500m ($378.4m) capital charge on Thursday, having uncovered serious faults in the firm's risk management practices. The announcement came a day after the bank paused its return to the sterling bond market.

  • China moves to reform onshore ratings industry

    China moves to reform onshore ratings industry

    Five Chinese regulators have drafted new guidelines for domestic credit rating agencies, attempting to reform an industry that has faced renewed criticism in recent months. Addison Gong reports.

  • CFPB payday lender rule could have unintended repercussions, sources say

    CFPB payday lender rule could have unintended repercussions, sources say

    The Consumer Financial Protection Bureau plans to revive the ‘ability to pay’ rule, rescinded in the Trump era, a move which will tighten its grip on payday lenders. While it may be beneficial to have deceptive payday lending practices eliminated, the new rule may stifle the growth of speciality finance lenders and take away a valuable source of funding for borrowers, sources say.

  • Chinese tech stocks fall as US delisting threat looms

    Chinese tech stocks fall as US delisting threat looms

    The US securities regulator has introduced rules that would delist foreign companies from local stock exchanges if they do not comply with US auditing standards. Shares in Chinese companies dual listed in Hong Kong and the US dived following the move.

  • Turkey: a masterclass in losing credibility

    Turkey: a masterclass in losing credibility

    The shock sacking of Turkey’s third central bank governor in two years confirms to investors that the country lives in a world of its own — one in which central bank independence and fiscal prudence come second to the ideologies of the leader.

  • Sacking of central bank chief ruins Turkey's recovering reputation

    Sacking of central bank chief ruins Turkey's recovering reputation

    An imminent bond issue from Turkey is looking unlikely, investors say, after the abrupt sacking on Saturday of Naci Ağbal, governor of the central bank, just a day after he had raised interest rates by 200bp. Both hard and local currency bonds have sold off and market participants fear a balance of payments crisis.

  • What the Goldman 13 show us about financial sweatshops

    What the Goldman 13 show us about financial sweatshops

    Last week’s horror slide deck from 13 first year analysts in Goldman Sachs’s investment banking division describing their working lives, or rather, their lives — they didn’t appear to have time for any other sort — caused a sensation. But other than satisfying the public lust for tales from the extreme end of Big Finance, what can the episode teach those in the industry, and those trying to enter it?

  • Victory City’s debt woes build

    Victory City’s debt woes build

    Chinese textile company Victory City International Holdings’ financial predicament has taken a turn for the worse as it revealed previously undisclosed outstanding debt at its subsidiaries this week.

  • Biden sanctions threat could freeze growing Russian IPO wave

    Biden sanctions threat could freeze growing Russian IPO wave

    The Russian IPO market has a strong pipeline of listings being prepared for execution over the rest of the year. However, getting deals done could grow much harder with the threat of fresh sanctions against the country from a new US president threatening to derail the market.

  • Senate committee firms up SEC, CFPB leaders

    Senate committee firms up SEC, CFPB leaders

    The Senate Banking Committee approved the nomination of Gary Gensler as chair of the Securities and Exchange Commission and Rohit Chopra as director of the Consumer Financial Protection Bureau, allowing the two picks by US president Joe Biden to advance to the Senate floor. The restoration of consumer protection initiatives removed under the Trump administration is expected to follow a successful confirmation by Chopra.

  • Greensill’s private status sheltered it from short seller scrutiny

    Greensill’s private status sheltered it from short seller scrutiny

    Short sellers get a lot of stick, whether it is Elon Musk taunting them, an army of Redditors squeezing them or the corporations they target otherwise harassing, suing and investigating them. But they play a vital part in capital markets, as underlined by the Greensill affair — where the finance firm’s private status meant that for too long it could hide from the accountability that short sellers can help deliver.