$MFG

China approved Citigroup's application to operate a fully-owned securities firm in Shanghai, with $180M in capital. This follows Beijing's 2020 decision to scrap ownership caps, allowing foreign firms like JPMorgan and Goldman Sachs to operate independently. The move signals China's commitment to opening its financial sector and elevating standards.

Mizuho Financial Group and Daiwa Securities have cleared regulatory hurdles to launch independent securities operations in China, according to Bloomberg. Both banks have been notified of passing final reviews, marking the end of long efforts to establish a stronger onshore presence. Mizuho secured a securities license in September 2023, while Daiwa agreed to a $100 million deal to buy out joint venture partners.

Japan's three largest banks (MUFG, Mizuho, SMBC) completed trials of a yen-backed stablecoin, aiming for commercial launch by fiscal year-end. The stablecoin, structured as trust beneficiary rights, was tested for cross-border payments. The banks use Avalanche blockchain via Progmat, potentially competing with XRP-based solutions.

The Reserve Bank of India conditionally approved Mizuho's acquisition of a majority stake in Avendus Capital, requiring a detailed integration plan for its NBFC businesses. Mizuho, which already holds stakes in Credit Saison India and Rent Alpha, aims to complete the $520m deal within six months. Avendus operates in investment banking and asset management across multiple countries.

UBS and Mizuho Bank tested cross-border payments in Swiss francs and yen on Swift's blockchain-based ledger. The trial confirmed operational processes and technical requirements for tokenised deposit transactions. Mizuho aims to apply insights gained to future cross-border payment services.

Major Japanese bank stocks rose on Friday, with Mizuho, Sumitomo Mitsui, Mitsubishi UFJ, Japan Post Bank, and Resona gaining 3.2% to 4.5%. The Nikkei 225 also climbed over 1%. This followed a surge in Japanese government bond yields, hitting a 30-year high, and expectations of further interest rate hikes by the Bank of Japan and the Federal Reserve. Higher yields improve lending margins for banks, but also increase credit risks. Japan Post Bank outperformed due to its large government bond book.

Asian bank stocks fell Tuesday, led by Japanese lenders, after Bank of America warned of weaker trading and investment-banking revenue in Q3, citing a likely 10% drop in fees to $1.6B-$1.8B. Rising bond yields and rate hike expectations added pressure. U.S. financial stocks also declined Monday, with BofA down 5.1% and the KBW Bank Index falling 1.9%.

Japanese banks are raising deposit rates and offering rewards to attract savers as interest rates rise. Mizuho, Mitsubishi UFJ, and Sumitomo Mitsui are among those introducing new services. Banks profit from the spread between deposit and lending rates. Consumers are weighing deposits against investments, with varying strategies. Regional banks are also innovating with themed products, like Kairos' space-industry deposit.

Radiant World is accused of using fake Glencore invoices to secure $31.7M in financing from Incomlend. Incomlend alleges Radiant World misrepresented unpaid invoices and contracts. Glencore claims the invoices were already paid and contracts were not genuine. Radiant World denies wrongdoing. Incomlend seeks $34M in damages. Radiant World faces multiple legal challenges and investigations.

Mizuho and Incomlend filed legal claims against commodity trader Radiant World in Singapore. Mizuho sought an injunction, while Incomlend claimed US$34mn. Radiant World faces allegations of submitting fake invoices, with multiple lenders affected. Deutsche Bank and KBC froze some accounts, and Intesa Sanpaolo reported a €200mn exposure. Radiant World denies wrongdoing and asserts normal operations.