IslamicFinance.de

Affin Holdings Bhd (AHB) and The Bank of East Asia Ltd, Hong Kong (BEA) have formally established a partnership to jointly develop business in China, Hong Kong, Malaysia and other key markets where they both operate.

BEA chairman and chief executive Dr David K.P. Li said that the China Banking Regulatory Commission is studying the proposal to set up a joint venture between BEA and AHB to conduct Islamic banking in China, but that there are no related laws yet.

Islamic Finance Expert reported that Ningxia Bank has been identified by the relevant ministries in China to develop a pilot project in Islamic finance.

Amara Holdings, a Dubai investment firm, and New China Trust Company’s subsidiary, Shanghai Ding Hai Investment Management Company, will identify and evaluate Islamic finance investment opportunities in China for themselves and co-investors and clients.

HSBC has received approval from the Hong Kong Monetary Authority to sell Sukuk (Islamic Bonds) in Hong Kong, the first local bank in the territory to do so.

Bruno Lee is head of liabilities business and wealth management.

Mushtak Parker writes in Arab News on 23 February that the Hong Kong Special Administrative Region government is finalizing new tax laws which would facilitate the introduction of Islamic finance on a par with equivalent conventional products, and there is a strong possibility that the Hong Kong Airport Authority (HKAA) will issue the debut quasi-sovereign Sukuk from the island enclave during 2009.

However, Hong Kong is concerned about the effect on Islamic finance of the credit crunch and the global financial crisis, since no economy, including those in the Middle East and GCC (Gulf Cooperation Council) countries, have gone untouched. Thus it seems unavoidable that Islamic finance will slow its pace of development in the near term, "alongside growing downside risks in the global financial scene."

Deal Journal reported on 10 April about potential ambitions of Hong Kong based corporations to issue Sukuk. Those companies cited include the Airport Authority Hong Kong, which is wholly government-owned. The Chinese newspaper Mingpao is cited that the other firms are rail operator MTR Corp. and Hong Kong Mortgage Corp.

MTR denied it is planning an Islamic bond issue.

Source: http://blogs.wsj.com/deals/2008/04/10/hong-kong-considers-islamic-bonds/

Rita Raagas De Ramos reported in Asian Investor on 7 April about the Memorandum of Understanding (MOU) between the Hong Kong’s Securities & Futures Commission the Dubai Financial Services Authority (DFSA) calling for mutual cooperation on capacity building and human capital development in Islamic finance, as well as the promotion and development of their respective Islamic capital market segments; both parties will examine the possibility of establishing a framework for the mutual recognition of their regulatory regimes on Islamic funds to facilitate cross-border marketing and distribution of such funds.

The MOU for cooperation on Islamic finance and capacity building was signed by Hong Kong SFC CEO Martin Wheatley and the DFSA CEO David Knott.

Source: http://www.asianinvestor.net/article.aspx?CIaNID=73222

Joyce Goh reported in The Edge Daily, Malaysia about plans of Bumiputra-Commerce Holdings Bhd (BCHB), parent company of CIMB Group, will use its 20% stake in Bank of Yingkou (BOYC) of China as a springboard to expand its business there, particularly latching on its Islamic finance expertise to carve a niche for itself in one of the world’s fastest-growing economies. China has a larger Muslim community than China. BOYC is looking to expand to Shenyang — the city in Liaoning province earmarked to be an Islamic finance hub of China. Just three months ago, BOYC received the approval from the Chinese government to transform itself from a local commercial bank into a regional bank, thereby giving it the green light to expand its services in the Liaoning province.