Tag: Finance

  • Hong Kong and Macau Announce Wealth Connect Bank List

    Hong Kong and Macau Announce Wealth Connect Bank List

    China’s two special administrative regions announced their list of eligible banks to participate in the cross-border wealth management scheme.

    In Hong Kong, HSBC, Standard Chartered, Citi and more were amongst those on the list of 19 approved banks, according to an announcement yesterday from the city’s central bank.

    Three banks – Bank of East Asia, DBS and Dah Sing Bank – were only allowed to sell products via the southbound route.

    Considering that it will be the first time for retail investors to conduct cross-boundary investments, we will closely monitor the operation of the cross-boundary Wealth Management Connect and step up investor education and investor protection work together with the industry, said Hong Kong Monetary Authority chief executive Eddie Yue Wai-man in a statement.

    Concurrently, Macau’s central bank also announced its list of seven lenders approved for the cross-border scheme earlier this week.

    Bank of China, Bank of Communications, China Construction Bank, China Guangfa Bank, CMB Wing Lung Bank, ICBC and Luso International Banking were approved to launch services in the Wealth Connect program as of yesterday, according to the Monetary Authority of Macau. z

  • UBS Asset Management Appoints Australasia Country Head

    UBS Asset Management Appoints Australasia Country Head

    UBS Asset Management has named a new country head for Australia and New Zealand.

    Alison Telfer has been named to the role, according to a report by the Australian Financial Review.

    She has 20 years of asset management experience, most recently with Blackrock where she was its chief operating officer, general counsel, and head of public policy for Australasia.

    Telfer’s strategic mindset coupled with her extensive Asia Pacific asset management experience will be valuable in helping her position UBS Asset Management for the future, said UBS Australasia joint-country head Nick Hughes.

  • Deutsche Bank Hires Ex-Bank of Singapore MD

    Deutsche Bank Hires Ex-Bank of Singapore MD

    A former managing director from Bank of Singapore has joined Deutsche Bank’s wealth unit in Singapore.

    Deutsche Bank Wealth Management hired Faye Lee as a managing director, according to a statement, tasked with covering ultra-high net worth clients in Southeast Asia.

    Based in Singapore, she joins a team led by Southeast Asia head Shang-Wei Chow and reports to group head of Southeast Asia Terence Leong.

    Lee has over 17 years of wealth management experience, most recently with Bank of Singapore where she was a managing director. Previously, she also worked for ING Asia Private Bank, prior to OCBC’s acquisition in 2009, Citi and HSBC.

  • StanChart Enters BNPL Space With Atome Investment

    StanChart Enters BNPL Space With Atome Investment

    The bank has entered a 10-year multi-product strategic partnership with Buy Now Pay Later (BNPL) brand Atome to deliver a wide range of financial services to consumers and merchants across key markets in Asia.

    The partnership, which aims to deliver mobile-first financial services for consumers across Asia, includes a planned $500 million financing to support Atome Financial to expand its regional ecosystem of merchants and customers.

    The partnership will initially include BNPL services, targeting to roll out in Indonesia, Malaysia, Singapore and Vietnam in the next few months, and later expand to include digital lending products, according to an announcement on Wednesday.

  • UOB Launches Platform for Energy Efficiency Projects

    UOB Launches Platform for Energy Efficiency Projects

    The platform will be launched first in Singapore, with subsequent roll-outs in Malaysia, Thailand, and Indonesia.

    UOB is launching an integrated financing platform U-Energy to drive the development and adoption of energy efficiency projects for buildings and homes, as part of its Smart City Sustainable Finance Framework.

    The bank highlighted that buildings and construction projects globally account for 38 percent of carbon emissions and that this is a key area to address to meet Singapore’s target of reducing carbon emissions by 36 percent from the 2005 levels by 2030.

    Building owners, energy service companies, and homeowners can reduce an average of 20 percent in energy consumption by tapping on its green financing for energy efficiency projects under U-Energy, UOB said.

    UOB noted that building owners and homeowners often lack financing support and the expertise to find the right energy service companies.

    At launch, the platform will have nine energy service companies that customers can tap for energy efficiency projects, such as chiller and air conditioning efficiency, installing solar panels on rooftops, switching to LED lights, optimizing energy and power management systems, and changing the building façade to reflect direct sunlight to reduce heat absorption, as well as replacing elevators with energy-regeneration technology.

    UOB previously launched integrated financing platforms for solar energy and electric vehicles under the bank’s Smart City Sustainable Finance Framework

  • Call For Rise in Banking Salaries

    Call For Rise in Banking Salaries

    Bank employee representatives have set their demands for this fall’s wage negotiations. Their objective is to raise salaries at the lower end.

    The Swiss Bank Employees Association is advocating a general wage increase and raise of at least 2.2 percent, or 300 francs a month for bank employees, according to a statement Thursday.

    The call is the outcome of a salary survey among more than 4,000 employees and a meeting of employee representatives in mid-September. The boost would help those on lower wages, in particular, the statement says.

    The association points out that while wages in the banking industry are rising, on the whole, not everyone is seeing the benefit. On an individual level, only 32 percent of respondents got a boost in 2021, down from 37 percent in the last survey.

    Banks were profitable, despite the Covid 19 crisis, and results from this year have continued to be good, with most banks having saved costs from people working from home.

    Next year the association will focus on fair and transparent rules for the wage-setting process.

  • UBS Partners With Robeco

    UBS Partners With Robeco

    Over the past years there has been some back and forth between UBS and Robeco. Now the two have joined forces to launch a sustainability fund.

    The investment company Robeco has launched a global engagement equities fund in partnership with UBS’ global wealth management, according to a statement Thursday. UBS will remain an exclusive partner for the next six months and aims to invest $1.5 billion.

    The fund has the sustainable investment objective to drive a clear and measurable improvement in a company’s contribution to the United Nations Sustainable Development Goals (SDGs) over three to five years, the statement says.

    Michiel Plakman is the fund’s lead portfolio manager, supported by Daniela da Costa, Peter van der Werf, Giacomo Moroni and Jan Anton van Zanten at Robeco.

    Robeco is no stranger to UBS: The Swiss bank’s chief sustainability officer Michael Baldinger, was previously CEO of Robeco. Last year UBS teamed up with Zug-based asset management giant Partners Group, on a private market offering for wealthy clients.

  • UBS Creates ESG Role in Investment Bank

    UBS Creates ESG Role in Investment Bank

    The Swiss bank appoints one of its investment bankers to a key sustainability role.

    Zurich-based UBS is naming Laurent Bouvier to front a new team of investment bankers focused on environmental, social, and governance responsibility, according to a memo seen by finews.com. Bouvier, a managing director, is currently co-head of the global industries group, with Charles Otton.

    Bouvier’s promotion is part of a wider push by UBS and other investment banks to increasingly consider so-called ESG criteria in traditional sectors like industry. Wall Street rivals like Goldman Sachs and Deutsche Bank have already set up similar teams, which first reported Bouvier’s appointment.

    A dealmaking veteran, Bouvier will be joined by Armin Peter and Samantha Sutcliffe, who have devoted themselves to sustainable banking and finance efforts at UBS since 2019. Peter is the global head of debt syndicate and the head of sustainable banking in the European, Middle East, and Africa regions. Sutcliffe is the head of green and sustainable finance.

    Bouvier previously spent more than 16 years at Credit Suisse, also as an MD, before joining UBS in 2015. He will be replaced in his current job by Philippe Chryssicopoulos, who will co-lead the industrials group with Otton.

  • UBS China Fund Caught in Tech Maelstrom

    UBS China Fund Caught in Tech Maelstrom

    UBS’s $10 billion China Opportunity fund caught in the downdraft of the country’s harsh tech crackdown.

    It was only last April that Bin Shi gave a fireside chat on a UBS asset management hosted website. The bank’s head of China equities appeared optimistic about the outlook for Chinese equities, saying it was likely the tech sector had seen the worst in terms of anti-trust penalties.

    As a result, he felt confident buying high-quality A-share titles listed in Shanghai and Shenzhen.

    And when Shi talks, investors tend to listen – given he currently manages four different vehicles focusing on Chinese equities, the largest being the China Opportunity Fund.

    It is one of the most important equity funds at UBS. It has a highly successful track record, and assets under management were $14.4 billion at the end of 2020. Over the past five years, it posted an annualized return of more than 12 percent.

    Until this year, Morningstar ranked it as a five-star fund while Citywire has long rated Shi highly.

    What that means is that Shi gets talked about. In Switzerland, the fund seemed to attract new money almost by magnetic force, envious market competitors say.

    But over the past few months that force has likely weakened significantly. Things have not turned out as Shi expected. A-shares continue to tank, as do Chinese securities listed overseas. In summer, the fund recorded double-digit declines and it lost a Morningstar star in July. As of right now, the fund is down almost 22 percent this year.

    That means that it trails the MSCI China Index and many of its peer funds. It still managed $10.4 billion in assets in June with the first half report recording redemptions of about $3.8 billion, although that was still more than offset by inflows of $4.2 billion. But if you factor in market performance, the current shortfall is more likely to be about $1.2 billion.

    That is more than likely to be a big hit for Shi. When asked by finews.com, UBS said that it takes the long-term view when it comes to identifying market prospects and it invests in companies with strong management and a long-term vision that allow them to ably manage geopolitical, regulatory and other external events.

    China is more volatile than other markets, and such an environment creates opportunities for active managers to create value,, a spokesperson said.

    It appears that the fund bet billions of dollars on the Chinese companies bearing the brunt of the anti-cartel and regulatory crackdown. Its holdings of Tencent comprise 9.76 percent of the portfolio, Alibaba and other Jack Ma companies, including Ant, which is being split up, make up 5.74 percent. In comparison to peers, it appears to be overweight in financials.

    In the meantime, the Chinese government seems to be ramping up scrutiny of the insurance sector. One of the largest insurers is Ping An, which is 5.29 percent of the portfolio. Authorities are also taking steps against video games, which is likely to impact major games producer Netease (4.97 percent of the portfolio).

    The brutal decline in Chinese equities has proven controversial, given that it has become mixed up in the U.S.-China trade war, the pandemic and violations of human rights in China. Market legend George Soros has called Blackrock’s recent move into China a «tragic mistake». He warned that the world’s largest asset manager was likely to lose money as a result, warning that the recent steps against the tech sector are a symbol that Chinese President Xi Jinping will do anything to remain in power.

    One of the world’s mostly closely watched investors, Cathie Woods, recently sold off a sizeable chunk of her funds holdings in China tech.

    Blackrock and UBS have no choice but to grin and bear it. The Chinese investment market is a long-term gamble and one in which UBS managed to position itself before other competitors. UBS is also intent on making more investments there. That also holds for the funds business. It is expanding its palette of products and it is shortly expected to launch a new China Healthcare fund.

    But if UBS China funds continue to bleed, that could change. It is mostly investors outside the mainland that have been burned by the tech crash and they make most of their money from them.

    They seem to have had enough of the way Chinese authorities have been acting, which they see as unpredictable and overly draconian.

  • Deutsche Bank Wealth Management Hires Ex-DBS Duo

    Deutsche Bank Wealth Management Hires Ex-DBS Duo

    Deutsche Bank Wealth Management has hired two former executives from DBS Private Bank to bolster its South Asia business.  Shankar Jha joins the German private bank’s global South Asia (GSA) team in Singapore as a managing director and group head, according to a statement, reporting to global South Asia head Amrit Singh.

    Jha has over 20 years of private banking experience, most recently with DBS Private Bank where he spent six years, last as a senior director and team leader. Previously, he also worked for UBS Wealth Management and Citi Private Bank.

    Deutsche Bank Wealth Management also hired Sachin Thussu as a director and senior investment advisor.

    Based in Singapore, he will be part of the investment management team and report to head of investment management global GSA Ritesh Goenka.

    Thussu has over 20 years of experience across financial markets – most notably, FX and precious metals – and cross-asset advisory. Prior to joining Deutsche Bank, he worked for DBS Private Bank, Credit Suisse, Standard Chartered Private Bank and Citi covering private wealth and quasi institutional clients from London, Zurich and Singapore.

    Year-to-date, Deutsche Bank’s GSA unit has hired 14 relationship managers across Dubai, Geneva and Singapore.

    Notable additions include ex-Julius Baer bankers Dhananjay Rathore as a managing director and Rajasekar Ayyalu as a director based in India where four relationship managers have been hired thus far this year. Other newly hired directors include Richard Van-Dirmen, Hervé Alykhan Ladak, Randeep Singh and Harshin Shah.

    The GSA unit also added three investment advisors in Dubai and Singapore.

    At Deutsche Bank Wealth Management, we value the importance of the GSA market to the Bank’s Asia strategy, and will continue investing, said Singh in the statement.

  • DBS Digital Exchange to Grow Security Token Offerings

    DBS Digital Exchange to Grow Security Token Offerings

    The platform plans to tap on the growing popularity of cryptocurrencies and digital assets among corporate investors, accredited individuals and family offices.

    DBS plans to list at least half a dozen security tokens by end-2022 on DDEx, the bank’s institutional-focused digital asset exchange, the exchange’s chairman said on Monday.

    According to Eng-Kwok Seat Moey, who is also head of capital markets, the bank’s position as one of the biggest wealth managers in Asia and its expertise in originating deals in capital markets would help it attract users and grow trading volume.

    The bank listed its first security token on the platform in May 2021, in the form of a S$15 million digital bond.

    Eng-Kwok repeated CEO Piyush Gupta’s target of growing the digital exchange’s investor base to about 1,000 customers this year, and said DBS wants to grow this number by 20-30 percent annually for the next three years as digital tokens gain acceptability.

    DDEx was launched in December 2020 with an initial offering that covered cryptocurrency trading. As of August 2021, it housed around 400 investors with close to S$130 million ($95.8 million) of digital assets in its custodial services.

  • PayPal Inks Deal to Expand Asia Reach

    PayPal Inks Deal to Expand Asia Reach

    The U.S. fintech giant announced a mostly cash deal to acquire Japan’s buy now, pay later (BNPL) payments platform Paidy for ¥300 billion (about $2.7 billion) on Wednesday.

    The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third-largest e-commerce market in the world, complementing the company’s existing cross-border e-commerce business in the country, PayPal said in a statement.

    According to an investor presentation, shopping volume in Japan more than tripled to around $200 billion in the last 10 years, with more than two-thirds of all purchases paid for in cash, thereby presenting a huge opportunity for BNPL to proliferate.

    Founded in 2008, Paidy has 6 million users. PayPal already has stakes in other BNPL businesses, including Sezzle and Z1P.AX.

    Under the BNPL model, unsecured loans are extended to online shoppers similar to a credit card, but these are smaller in amount and have a shorter repayment schedule. Such platforms have seen a boom in popularity over the past year, though critics see them as a debt trap.

    In another major deal in the space, Square, run by Twitter CEO Jack Dorsey bought Australian Afterpay for $29 billion last month.

  • Citi Commercial Bank Opens China Desk in Singapore

    Citi Commercial Bank Opens China Desk in Singapore

    The new China desk in Singapore adds to CCB’s network of six Asia desks in the region, which supports clients’ banking needs across intra-Asia growth corridors.

    Citi Commercial Bank (CCB) Asia Pacific has set up a China desk in Singapore, facilitating access to the cit-state and wider ASEAN region for emerging corporates from China, it announced on Monday.

    Mona Zhang, previously parent account manager for mid corporates in CCB China’s office, is leading the desk. Zhang brings a wealth of knowledge and experience in understanding the business landscape in China and serving the needs of Chinese corporates.

    She will build the bank’s relationships with China-based clients and support their expansion plans into Singapore and as well as the rest of ASEAN, Citi said in a statement.

    Citi highlighted CCB’s growth across China to Singapore as well as China to ASEAN corridors. Last year, it more than doubled revenue in the China to Singapore corridor, supported by 35 percent growth in new client acquisition. Momentum in new client acquisition also resulted in a doubling of revenue in the China to ASEAN corridor last year, Citi said.

    Singapore and the broader ASEAN region are key markets for growth for expanding Chinese emerging corporates. A majority of these clients set up holding companies in Singapore for their ASEAN units, with the market serving as a treasury and funding hub, Lin Hsiu-Yi, CCB ASEAN and Singapore head, said.

    Other CCB desks in the region include a Korea desk in China, Hong Kong, India and Vietnam; a Greater China desk in Hong Kong; and a China desk in India.

  • HSBC Plans for Permanent Hybrid Work Model

    HSBC Plans for Permanent Hybrid Work Model

    HSBC is the latest to embrace hybrid working with plans to make it a permanent model for the bank worldwide.

    My own view on the return to office is it would be a waste if we didn’t learn from the last 18 months, said HSBC group chief executive Noel Quinn.

    The bank’s work-from-home embracement is part of broader plans to cut costs including a 40 percent reduction in property footprint in the coming years. It also changed its office policy to include two employees per desk, excluding branches, and scrapped the executive floor of its London-based headquarter.

    We’ve learned to live and operate in a very different way, Quinn said, though he noted that he didn’t want to be overly prescriptive.

    Despite the plans, Quinn highlighted some of the advantages of the physical workspace such as social relationships or spontaneity.

    I don’t want to lose that DNA and that teamwork, he said. I’m really glad to be back in the office, seeing colleagues and having conversations in the corridor or in getting stuff done on the spur of the moment, rather than having to book a VC call or a telephone call.

    Quinn also highlighted traveling in the pandemic era, with the bank expecting budget in this area to shrink by 50 percent.

    I remember one day sitting at home, I traveled the world in a day, talking to clients in different parts of the world, he said. You can’t do that forever. You still want to have face-to-face interaction.

    Global banks remain divided on work-from-home measures with some like Citi and Standard Chartered signaling or planning a permanent shift while others like Goldman Sachs and Morgan Stanley preferring a return to the office.

  • BNP Paribas in Talks to Form China Wealth Management JV

    BNP Paribas in Talks to Form China Wealth Management JV

    BNP Paribas’ asset management arm is reportedly in talks with a Chinese «big four» bank to form a wealth management joint venture in the mainland.

    BNP Paribas is in talks with Agricultural Bank of China’s (AgBank) wealth unit to form a wealth management joint venture, according to a report citing unnamed sources.

    BNP Paribas is expected to hold majority stakes in the joint venture.

    BNP Paribas joins the likes of Blackrock, Goldman Sachs and other global financial institutions seeking to tap into China’s $19 trillion wealth management market.

    French rival Amundi had initially discussed venture plans with AgBank but ultimately chose Bank of China as its partner.

    AgBank and other major state banks face political pressure to form wealth management joint ventures, the report added, indicating China’s willingness to open up.

    Within mainland China, BNP Paribas Asset Management already owns a Chinese mutual fund venture.