A regular round-up of compliance news, such as fines, permissions, new technology solutions to make tracking risks easier, and other developments.

Middle East-based QNB Group has won regulatory approvals from the Hong Kong Monetary Authority to open a branch in the Asian jurisdiction.

The branch will provide a full range of banking products and services, and will also offer expertise in the areas of trading securities and wealth management and other solutions.

“Receiving the approval to open a branch in such an important market is another vital step in QNB Group’s international expansion plans to support its growth strategy and market leadership in MEASEA, as well as establish a foothold in highly competitive markets,” Abdulla Mubarak Al-Khalifa, QNB group acting chief executive, said.

“Growth in both Hong Kong and China is expected to continue, driven by trade opportunities, direct investments, and large infrastructure spending opportunities, and the Hong Kong branch offers the opportunity to leverage QNB’s in-depth expertise to capture investment and trade flows in this promising market,” he added.

China 
China’s planned capital rules for banks’ wealth management units may boost credit growth and the equity market, a report quotes JP Morgan as saying. 

The China Banking and Insurance Regulatory Commission, the national regulator, has put out draft rules that require net capital of banks’ wealth businesses to be at least 40 per cent of their net assets.

If the plans are taken up, banks’ issuance of wealth management products may rebound, Bloomberg quoted JP Morgan as saying. 

The wealth management products sector in China has been the focus of regulatory attention for some time. It is seen as part of the shadow banking system to some extent. Retail investors bought most WMPs. The products typically offer higher interest rates than a bank deposit. The assets used to fund these payouts aren’t always very clear.