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Retail News Asia is committed to providing both local and global retailers with the latest Finance news throughout the Asian market. This on a daily base.

  • Vietnam to trial virtual currency

    Vietnam to trial virtual currency

    The Vietnamese government has ordered its central bank to study virtual money using blockchain technology over three years amid rising interests in this type of currency.

    The State Bank of Vietnam will be in charge of studying and trialing the use of virtual money from this year until 2023 as part of key objects in mastering core technologies, according to a government decision.

    The government does not give a clear definition of virtual currency and assets.

    For now, cryptocurrencies remain an illegal means of transaction in Vietnam. However, the trading of Bitcoin and the like is popular with many investors using foreign platforms and social media to make money from this asset.

    Vietnam has the second-highest rate of cryptocurrency usage among 74 economies, according to a survey by market researcher Statista.

  • Singapore Leads Banking-as-a-Service Adoption

    Singapore Leads Banking-as-a-Service Adoption

    Almost half (47 percent) of all financial institutions in the republic have invested in banking-as-a-service in the last year, and 45 percent are looking to do so in the next 12 months, according to a new survey by Finastra.

    Financial institutions (FIs) in Singapore are among the most confident in BaaS globally, with 87 percent saying they expect to see benefits in the coming year, Finastra said in its Financial Service State of the Nation Survey 2021, published on Tuesday.

    At the same time, 97 percent said open banking is important to their business, with 56 percent calling it a must-have and highlighting its ability to deliver new services.

    Hong Kong FIs are also some of the most optimistic towards BaaS, with 42 percent deploying or improving BaaS in the last 12 months and 92 percent expecting to see positive impacts from BaaS and embedded banking (89 percent) in the next 12 months.

    Covid-19 Boost

    Singapore financial institutions had the largest increase in digital banking investment (25 percent) in response to COVID-19 among markets surveyed, and the highest proportion of respondents globally saying their bank increased overall investment/budgets in response to the pandemic (84 percent).

    The study was conducted in March 2021 among 785 professionals at financial institutions and banks in France, Germany, Hong Kong, Singapore, the U.A.E., U.K. and U.S.

  • Huawei CFO’s Lawyers Refute U.S. Claims with HSBC Document

    Huawei CFO’s Lawyers Refute U.S. Claims with HSBC Document

    Huawei chief financial officer Meng Wanzhou’s lawyers claim that HSBC’s internal documents contradict U.S. claims that could result in extradition from Canada.

    HSBC’s own records reflected Huawei’s continued control over dealings with Iran-linked Skycom, Meng Wanzhou’s lawyers told a British Columbia court, including control over its accounts held at the British lender.

    According to Meng’s lawyer Mark Sandler, HSBC had conducted risk assessments with full knowledge of Huawei’s relationship with Skycom, adding that the latter’s financial statements were even included in a report on the Huawei account to the bank’s head office.

    We’re now in a different universe, Sandler said at the hearing yesterday. There is no plausible case for committal.

    Meng is approaching the final round of extradition hearings scheduled for August.

    If admitted by the court, the HSBC documents which were obtained in a deal overseen by a Hong Kong court in April will be usable for the hearing.

    Acting on behalf of the U.S. in the case, lawyers for the Attorney General of Canada have yet to respond to the submissions.

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  • Maybank CFO to Head Malaysia Sovereign Wealth Fund

    Maybank CFO to Head Malaysia Sovereign Wealth Fund

    He takes over from Shahril Ridzuan who will be departing to pursue his personal interests.

    Malaysia’s Khazanah Nasional has appointed veteran banker Amirul Feisal Wan Zahir as managing director, effective 16 July, it said in a statement on Tuesday.

    Zahir, 51, began his career at auditing firm KPMG and later joined Citi in the Kuala Lumpur, Singapore and Hong Kong offices until 2004. He joined Maybank in 2008 as head of investment banking but left two years later for government fund manager Permodalan Nasional as executive vice-president of special projects. He rejoined Maybank in 2014 as group head of global banking and was made CFO in 2016.

    Kazanah’s portfolio includes a commercial fund, with a realisable asset value (RAV) of 95.3 billion ringgit ($22.94 billion), and a strategic fund with a RAV of 27.9 billion ringgit ($6.72 billion), as of end-2020.

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  • China Bond Bankers Flee HSBC

    China Bond Bankers Flee HSBC

    HSBC has reportedly lost four bankers in its debt capital markets team covering Chinese state-owned enterprises as the business faces pressure from the Huawei incident and stressed relations with the U.K.

    Managing directors John Hai and Jiang Song have left HSBC in recent weeks, according to a report citing unnamed sources, with plans to join competing firms after more than a decade with the British lender.

    Hai and Jiang led client coverage of Chinese investment-grade issuers including state-owned enterprises (SOE).

    Two other bankers on HSBC’s China investment grade team have also left.

    The Chinese investment-grade bond team has 12 employees and the overall debt capital market (DCM) unit has about 20.

    According to the sources, HSBC has been missing out on dollar bond deals from Chinese SOE clients following the U.S. probe of Huawei’s chief financial officer Meng Wanzhou.

    Dealmaking was also affected by U.K.-China tensions over political freedoms in Hong Kong.

    Despite the headwinds, HSBC continues to concentrate resources in Asia with reduction or exits from unprofitable operations in the U.S. and Europe.

    In addition to the transferal of three of HSBC’s most senior executives from London to Hong Kong, the bank has also made managing director-leveled hires in global co-head of capital financing Matthew Ginsburg and head of consumer and retail Heidi Chan.

    We continue to invest in our mainland China business – both onshore and offshore – and have seen recent strong momentum for our China DCM business, particularly in [the] public sector, FIG and high yield, said an HSBC spokesperson. As the leading foreign bank in mainland China, we are proud of our track record, and confident and optimistic about our ability to serve the financial and banking needs of our Chinese clients.

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  • Bank of Singapore Loses Market Head

    Bank of Singapore Loses Market Head

    Bank of Singapore has lost an industry veteran and market head for Greater China, sources said.

    Greater China market head Richard Hu has left Bank of Singapore, sources said, after joining in the role two years ago.

    Hu is an industry veteran with more than 20 years of experience in the region. He previously held multiple senior roles covering Greater China markets with Julius Baer, HSBC Private Bank, Credit Suisse, UBS, and Citi Private Bank.

    A spokesperson for the bank confirmed the exit. Although Bank of Singapore continues to be in hiring mode – it recently welcomed ex-UBS head of wealth planning for Singapore Paul Chua – it has also seen an outflow of executives in 2021.

    Earlier this month, we reported the departure of its head of Russia and Eastern Europe Vadim Bondarev.

    Several rival banks have been beneficiaries from recent exits such as RBC Wealth Management which named Vincent Cheng as a Hong Kong-based relationship manager and Credit Suisse which hired Rohit Narayanan to cover the India market. And In Janaury, Suresh Nair joined Standard Chartered Private Bank as a senior client partner.

  • UOB Taps Digital Innovation to Grow Wealth Franchise

    UOB Taps Digital Innovation to Grow Wealth Franchise

    The bank aims to double its wealth fee income by 2026, which translates to a compound annual growth rate of over 15 percent over the next five years.

    UOB is hoping get more of its customers to kickstart their investment journey by expanding its digital wealth offerings and investing in digital innovation, particularly as customers in the region are increasingly affluent but still underserved.

    On Thursday, the bank launched «SimpleInvest» on its UOB Mighty app, which aims to help customers grow their wealth via Liquidity, Income or Growth solutions that places their funds in either UOB Asset Management’s United SGD Money Market Fund, or a basket of actively managed funds by renowned international asset managers such as Allianz, Fidelity International, J.P. Morgan Asset Management, Schroders and UBS Asset Management.

    The digital self-serve solution was developed to lower the barriers first-time investors encounter when starting their investment journey, Jacquelyn Tan, UOB’s group head of personal financial services, said at a media launch.

    According to the bank’s, many of its customers who are new to investing think it is difficult and require significant sums, or do not have the knowledge or confidence to do.

    The bank is also hoping that the personalization of wealth management for each customer, such as by providing them information and insights that are relevant to their needs and lifestyle choices, based on their banking patterns, will enable them to have the confidence they need to make wiser financial decisions.

    To reach its wealth management targets, UOB will be investing S$200 million ($148.74 million) in digital innovation over the next three years.

    It will also be progressively rolling out its suite of digital wealth solutions across the region, and targets one in four of its customers across the region to tap on its digital wealth solutions.

  • DBS Starts Commodity Trading on LME

    DBS Starts Commodity Trading on LME

    The bank is the first in Asia to hold a London Metal Exchange (LME) trading membership outside of London.

    DBS is one of four Category 4 members on the LME, which allows it to trade and issue client contracts but doesn’t give it clearing abilities.

    The LME membership paves the way for the bank’s corporate clients in Singapore, China, India, Indonesia, Korea, and Hong Kong to have access to a broader suite of hedging and financial solutions to support the diverse needs of metal businesses, DBS said in an announcement this week.

    It will also provide the bank’s clients in the metals and mining space with the option to access sustainably-produced metal, Tan Su Shan, DBS group head of institutional banking, said.

    Metals are an essential enabler to achieve a sustainable future, and as global demand for the commodity continues to grow exponentially, so will expectations on the industry’s sustainability standards, Tan said.

    The 144-year-old bourse is the global hub for metals trading and was acquired by Hong Kong Exchanges and Clearing in 2012.

  • Ant Group in Talks to Form Credit Scoring JV with Beijing

    Ant Group in Talks to Form Credit Scoring JV with Beijing

    Ant Group is reportedly in discussions with state-owned enterprises to create a credit scoring firm that houses data collected from its massive user base.

    The formation of the new entity could see Ant Group cede control over financial data of more than a billion users, according to a report citing unnamed users.

    Ant Group’s data sharing process with Beijing has been ongoing with reports earlier this year that the People’s Bank of China was unhappy with the progress.

    According to the report, considerations are being made to form a joint venture co-owned by Ant and state-owned enterprises (SOEs) – including an unnamed Shanghai-based financial conglomerate.

    The talks also covered the types of data collected, alignment between the credit scoring system and broader state plans as well as whether the joint venture should be controlled by Ant or SOEs.

    The entry could be established as soon as the third quarter this year though discussions are ongoing and no final decisions have been made.

  • SGX RegCo to Expand Enforcement Powers

    SGX RegCo to Expand Enforcement Powers

    The wholly-owned subsidiary of bourse operator Singapore Exchange (SGX) said on Thursday it will broaden its range of enforcement powers and require issuers to implement a whistleblowing policy.

    The move follows a public consultation, in which market participants had broadly supported the changes to listing rules, Singapore Exchange Regulation (SGX RegCo) said in an announcement.

    This will pave the way for swifter enforcement outcomes and reinforce confidence in Singapore’s capital markets, act as a greater deterrent against malfeasance, and enhance the protection of investors, SGX said.

    From 1 August 2021, SGX will be able to issue a public reprimand and require an issuer to comply with specified conditions, which are non-appealable.

    It will also be able to prohibit an issuer from accessing the facilities of the market for a specified period or until the fulfillment of specified conditions, prohibit any issuer from appointing or reappointing a director or an executive officer for up to 3 years, and require a director or an executive officer to resign.

    More severe sanctions, such as fines, will continue to be reserved for the independent Listings Disciplinary Committee

    SGX RegCo will require all issuers to establish and maintain a whistleblowing policy where the identity of the whistleblower is kept confidential and the individual is protected from reprisal.

    Issuers will be required to state in their annual reports that such a policy is in place for financial years commencing from 1 January 2021, as well as an explanation of how they have complied with key requirements such as independent oversight of the policy and commitment to the protection of the identity of the whistleblower.

  • UBS Rolls Out Permanent Hybrid Working Option

    UBS Rolls Out Permanent Hybrid Working Option

    UBS will allow up to two-thirds of its staff to permanently split working hours between home and the office, in hopes that the approach could help outdo U.S. rivals in requirement.

    An internal analysis of the 72,000-strong global workforce identified that around two-thirds had roles that were fit for hybrid working, according to a report citing unnamed sources, equivalent to more than 48,000 employees.

    The arrangements will be based on an individual’s role, tasks, and location with some, such as traders and branch staff, offered little flexibility with requirements to work on site. For certain activities, even hybrid workers will be required to come into the office to attend.

    No date has been set for a return to the office, according to the plan which is being led by chief executive Ralph Hamers.

    UBS’commitment to more hybrid working contrasts with that of major U.S. rivals which are not only increasingly asking workers to return but also demonstrating relatively critical views about the state of affairs.

    If you can go to a restaurant in New York City, you can come into the office and we want you in the office, Morgan Stanley CEO James Gorman said at a recent conference.

    Last year, UBS even explored the potential to have traders operate outside of the office, experimenting with virtual reality headsets for its London-based staff.

  • DBS Starts Commodity Trading on LME

    DBS Starts Commodity Trading on LME

    The bank is the first in Asia to hold a London Metal Exchange (LME) trading membership outside of London.

    DBS is one of four Category 4 members on the LME, which allows it to trade and issue client contracts but doesn’t give it clearing abilities.

    The LME membership paves the way for the bank’s corporate clients in Singapore, China, India, Indonesia, Korea and Hong Kong to have access to a broader suite of hedging and financial solutions to support the diverse needs of metal businesses, DBS said in an announcement this week.

    It will also provide the bank’s clients in the metals and mining space with the option to access sustainably-produced metal, Tan Su Shan, DBS group head of institutional banking, said.

    «Metals are an essential enabler to achieve a sustainable future, and as global demand for the commodity continues to grow exponentially, so will expectations on the industry’s sustainability standards,» Tan said.

    The 144-year-old bourse is the global hub for metals trading and was acquired by Hong Kong Exchanges and Clearing in 2012.

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  • The Year Global Banking Became Impossible

    The Year Global Banking Became Impossible

    U.S. sanctions and China’s new anti-sanctions law are creating internal compliance mayhem for international banks – and Swiss finance.

    The average compliance officer is facing a world of hurt right now. President Joe Biden’s executive order earlier this month drastically expanded the scope and range of prohibitions against Chinese companies and sovereign-owned entities, and it was met a week later by China’s new anti-sanctions law.

    Although conventional wisdom seems to point towards technological decoupling and irreconcilable compliance problems, the immediate truth is probably a starker, simpler one.

    The average bank or international company in Asia has probably spent the last couple of weeks shadow boxing itself into an unenviable corner. There are likely to be any number of incredibly angry emails going around and quickly convened meetings that decide nothing much. They are then immediately forgotten until the next unsolvable quandary pops up.

    What usually happens is that the combined compliance and risk apparatus, including the legal function, are caught fighting a desperate rear-guard action while still trying to grapple with doing the right thing. So, they call in external legal counsel.

    And law firms have been more than glad to provide. Although they are simply saying what a senior compliance person should be able to verbalize at management or committee meetings, they at least provide a lead-in, a buffer, in front of an irate front-line and management demanding clear and instant answers when there are none.

    It always seems to sound nicer when you schedule a conference call with external parties or, failing that, you can at least point towards or wave a fresh color printout – kind of like Chamberlain after Munich.

    After canvassing the web for literally five minutes with one search engine, a few opinions stand out for the average compliance person to choose from. Law firm Wilmer Hale goes pretty far out on a limb, saying the anti-sanctions law «creates far-reaching potential risks including the extraterritorial scope and a seemingly unbounded catchall provision.»

    They should probably only be used in extremis, although the firm did say it was «prepared to advise clients on how to comply with sanctions regimes in a way that makes sense for their business and to assist as needed in assessing the business implications of the ASL».

    Law firm Mayer Brown was more moderated, saying the law «further expands the risks for both Chinese and non-Chinese companies and individuals who have operations or dealings in or with China, particularly those who may be subject to conflicting legal obligations».

    Linklaters was much more subdued, saying «with these measures the PRC intends to counter attempts to influence its affairs by foreign governments via sanctions or other measures» before adding that clients should reach out to their usual contacts if they want to discuss it in more detail. All three are good choices to pad out any internal meeting even though they might not sway a decision in the direction intended.

    If all else fails, and the decision goes completely the wrong way, blame the screening team for everything.

    After all, they are the messenger and they always deserve to get shot.

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  • Three times more scammed via bank transactions than Bitcoin payments in Australia

    Three times more scammed via bank transactions than Bitcoin payments in Australia

    Bitcoin remains the most popular cryptocurrency playing a role as an investment vehicle and also a payment medium. However, scammers are exploring the payment aspect to defraud victims resulting in losses of millions of dollars.

    According to data compiled by cryptocurrency trading simulator Crypto Parrot, Australians lost an equivalent of AUD 26.65 million in scams where Bitcoin was the payment method in 2020. Despite Bitcoin being a new payment method, the fraud linked to the cryptocurrency ranked second behind banks.

    Scams involving bank transactions amounted to AUD 97.65 million, which is at least 3.7 times more than the amount lost in bitcoin payments scams. Other unspecified payment methods ranked third at AUD 24.17 million while cash ranked fourth at AUD 8.57 million. Credit cards emerged fifth at AUD 8.1 million.

    Elsewhere in terms of reported scams in 2020, payments methods not provided ranked top at 190,959 cases, followed by banks at 8,215. Credit cards rank third at 6,267 cases, followed by PayPal at 2,761. Other payment methods ranked fifth at 2,680 cases. Bitcoin cases emerged sixth at  1,985.

    The coronavirus health crisis partly played a role in Bitcoin being used as a payment method for scams in Australia.

    According to the research report: “Amid the pandemic, most people spend more time online on social media platforms, which became perfect grounds for targeting potential victims. Notably, victims deployed social media to share their referral codes with friends and contacts, bringing more people into the group involving the fake investment scheme. Overall, social media is an excellent tool for scammers who understand most people face the fear of missing out.”

    Furthermore, Bitcoin’s underlying nature of being decentralized and anonymous contributed to the crypto being utilized as a payment method in scams. Notably, this status means that the beneficiaries cannot be traced easily.

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  • Chinese Bitcoin Mining Exodus to U.S. Continues

    Chinese Bitcoin Mining Exodus to U.S. Continues

    More Chinese bitcoin miners are reportedly shifting operations to the U.S. after Beijing ramped up its crackdown against cryptocurrencies.

    Guangzhou-based logistics firm Fenhua International was moving bitcoin mining machines to Maryland, according to social media post, with a total weight of approximately 3,000 kilograms.

    This is estimated to be equal to a small batch of 200 mining units.

    This marks the latest mining exodus after the Chinese government ramped up its crypto crackdown with other firms, such as mining pool BTC.TOP also reportedly planning to shift operations to North America.

    Beijing’s latest move on crypto included a meeting between the central bank and various financial giants which subsequently led to a new announcement and related initiatives launched by industry players.

    Separately, the city of Ya’an had also reportedly committed to rooting out all bitcoin and ether mining operations.

    According to Compass Mining chief business officer Thomas Heller in a CoinDesk report, there are an estimated 526,000 ‘S19 machines’ – a type of crypto mining device – weighing 80,000 metric tons have been switched off in China.