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Tag: long-term

  • Digital Assets Maintain Strong Long-Term Prospects, Asserts Sygnum Co-Founder

    Digital Assets Maintain Strong Long-Term Prospects, Asserts Sygnum Co-Founder

    Sygnum, a regulated digital asset bank, was conceived with a dual vision between Singapore and Switzerland. Gerald Goh, co-founder and CEO of Sygnum Asia-Pacific, has been a key player in establishing this transcontinental structure since 2017. Even with the fluctuating state of crypto markets, Goh reports a robust demand. According to Sygnum’s recent survey, digital assets are becoming increasingly popular among high net worth individuals (HNWIs) in Asia.

    Origins of Sygnum

    The concept of Sygnum saw its inception in Singapore in 2017 during the Singapore Fintech Festival. Goh, along with his three co-founders Luka Müller, Manuel Krieger and Mathias Imbach, were united by a shared vision: to provide a trustworthy platform for global access to digital assets.

    The founders envisioned Sygnum as a bridge between Singapore and Switzerland, two of the world’s most innovative and forward-thinking financial centers. Their goal was to leverage the openness of these regulatory environments to integrate digital assets into the financial services sector. However, they were unsure which jurisdiction would pioneer the regulation of digital assets.

    Dual Incorporation Strategy

    As a result, the founders decided to simultaneously incorporate Sygnum in both Singapore and Switzerland. This decision proved to be a prudent one, as it allowed them to engage with both regulatory environments from the outset. From its inception, Sygnum has had a strong presence in the Asia-Pacific region.

    Goh explains that the dual structure was driven by the recognition of Singapore and Switzerland as trusted financial hubs in their respective regions. The Swiss base was intended to serve Europe, while the Singapore base would cater to the Asia-Pacific region. The founders saw this as a strategic combination of the best of both worlds, given that both the Swiss Financial Market Supervisory Authority (FINMA) and the Monetary Authority of Singapore (MAS) were among the earliest regulators to recognize the potential of blockchain technology.

    Market Orientation

    While Sygnum Asia appears to be more consumer-focused (B2C), its Swiss counterpart is more oriented towards serving businesses (B2B). In Singapore, Sygnum utilizes both B2C and B2B channels, but Goh acknowledges the current tilt towards B2C. The company has more direct clients than banking partners in Singapore, whereas in Switzerland, Sygnum collaborates with over 20 Swiss banks and is a leading provider of B2B services.

    Goh believes that the slower institutional adoption of crypto in Singapore is due to the cautious approach of regulated intermediaries in the region. Despite years of engagement with local banks and external asset managers, the momentum to launch regulated digital asset services has been somewhat subdued compared to other regions.

    Questions & Answers

    How did the concept of Sygnum come into being?
    The idea for Sygnum was conceived during the 2017 Singapore Fintech Festival. The co-founders envisioned a platform that would offer global access to digital assets in a trusted manner.

    What was the rationale behind incorporating Sygnum in both Singapore and Switzerland?
    The decision to incorporate in both jurisdictions was driven by the recognition of Singapore and Switzerland as leading, innovative financial hubs. The dual structure allowed Sygnum to engage proactively with the regulatory environments of both regions.

    Why is institutional adoption of crypto slower in Singapore?
    The slower adoption rate is attributed to the cautious approach of regulated intermediaries in Singapore. Despite ongoing engagement with local banks and external asset managers, the pace to launch regulated digital asset services has been more measured than in other regions.

  • Vontobel Boosts Asia Expansion with Industry Expert Cody Law: Aiming for Long-Term Regional Growth

    Vontobel Boosts Asia Expansion with Industry Expert Cody Law: Aiming for Long-Term Regional Growth

    Vontobel, the esteemed Swiss investment firm, continues to expand its presence in Asia, bolstering its team with a crucial addition aimed at strengthening intermediary relationships and setting the stage for enduring growth across the region.

    Cody Law has been welcomed into the Vontobel fold as the Senior Relationship Manager for Intermediary Clients. His role will include strengthening client relationships and broadening the firm’s distribution business through the establishment of partnerships with principal financial intermediaries.

    Law boasts an impressive 22-year track record in the Asia intermediary market, contributing to his reputation as a driving force behind business growth.

    Proven Client-Centric Expertise

    In his previous roles, Law demonstrated his prowess in overseeing financial intermediary relationships in Hong Kong. In particular, he excelled while stationed at Jupiter Asset Management. Prior to this, he partnered with Hong Kong intermediary clients at Janus Henderson Investors, delivering innovative solutions.

    Law’s early career comprises 16 enriching years in investment counselling and relationship management roles at leading financial institutions such as HSBC, Citibank, and Standard Chartered Bank. Here, he catered to high-net-worth clients, managing portfolios and investment products. Law is a proud alumnus of the University of Hong Kong, having earned a Bachelor of Mechanical Engineering (Honours).

    Geared Towards Expansion

    Law’s extensive network in Hong Kong and his vast experience across the intermediary landscape make him an indispensable asset as Vontobel readies for its strategic foray into Asia’s retail space, according to Clarabelle Ho, Head Asia Intermediary. She believes Law’s expertise will fortify the firm’s market presence and foster sustainable growth.

    Established Presence in Asia

    Having launched its Asia Pacific operations in 2008, Vontobel now caters to clients from Hong Kong, Singapore, Tokyo, and Sydney. This regional presence lays the groundwork for wider coverage and expansion.

    As of September 30, 2025, Vontobel managed assets worth 239.7 billion francs. The Zurich-based firm prides itself on operating as an investment-led global firm that prioritizes the client’s perspective. They harness technology to expand advisory and investment expertise across platforms.

    Questions & Answers

    Who is the latest Senior Relationship Manager for Intermediary Clients at Vontobel?
    Cody Law has been appointed as the Senior Relationship Manager for Intermediary Clients at Vontobel.

    What is the role of the Senior Relationship Manager for Intermediary Clients at Vontobel?
    The role involves strengthening client engagement and developing the firm’s distribution business by building partnerships with major financial intermediaries.

    What is Vontobel’s standing in the global investment sector?
    As of September 30, 2025, Vontobel, a Zurich-based firm, managed assets worth 239.7 billion francs, positioning itself as a leading investment-focused firm that prioritises clients’ perspectives and leverages technology to expand its advisory and investment expertise.

  • HSBC’s Hang Seng Deal Bets on Long-Term Gains Beating CRE Risks

    HSBC’s Hang Seng Deal Bets on Long-Term Gains Beating CRE Risks

    HSBC’s recent proposal to purchase Hang Seng has raised questions due to the potential commercial real estate risk in Hong Kong. However, some experts believe that possible long-term advantages such as cost synergies may offset these concerns.

    Deal Details

    HSBC last week proposed to take over its Hong Kong-based subsidiary, Hang Seng Bank, by purchasing the remaining 37% stake currently held by minority shareholders for HK$106 billion ($13.6 billion). This transaction values Hang Seng at $155 per share, representing approximately a 30% premium at the time of the announcement. Hang Seng is expected to maintain its individual brand, banking license, and board.

    The acquisition will be entirely financed by HSBC, which plans to restore its CET1 ratio to its target operating range of 14-14.5% by generating capital organically and pausing any further buybacks for three quarters.

    Post-announcement, Hang Seng’s share price saw an increase of approximately 26%, while HSBC’s shares dropped by nearly 8%.

    Potential Bailout Concerns

    One of the most significant concerns surrounding the deal is Hang Seng’s exposure to Hong Kong’s commercial real estate (CRE) sector, which has been experiencing a sustained decline due in part to reduced rental demand and enduring vacancies. Close to half of HSBC’s Hong Kong CRE exposure is linked to Hang Seng, which reported HK$25 billion of impaired loans in the sector as of the first half of 2025.

    Reports indicate that Hang Seng was in the initial stages of selling more than $3 billion worth of property-backed loan portfolios following HSBC’s directive to its London-based global chief corporate credit officer and the head of its special credit unit to initiate such a process three months prior. Additionally, HSBC’s Hong Kong CEO Luanne Lim was appointed as Hang Seng CEO in September, replacing Diana Cesar who was promoted to Hong Kong vice chair at HSBC.

    However, HSBC CEO Georges Elhedery maintains that the deal aims to stimulate growth. He has stated that the Hang Seng transaction was not motivated by pressure to rescue the local lender and added that the British firm would consider further acquisitions in Hong Kong, with transaction banking and wealth identified as priority growth areas.

    Analysts’ Take

    The business community has offered mixed reactions to the deal, which is yet to receive approval.

    According to a UBS report, benefits could arise from increased exposure to the high return on tangible equity (ROTE) market in Hong Kong and simplified operations. However, concerns about provisions for CRE loans persist. Jefferies downgraded HSBC from a “buy” to a “hold” status after the planned $8.5 billion share buyback plan was scrapped, noting that the Hang Seng deal would have a neutral impact on earnings per share before synergies.

    Michael Makdad, a senior equity analyst at Morningstar, stated that “parent-subsidiary double listings are inherently problematic in terms of governance and in this sense, it’s a positive and long-overdue move. Of course, HSBC will need to pay a premium so it likely wouldn’t be positive in terms of my fair-value estimate for HSBC but there should be some opportunities for cost synergies.”

    Questions & Answers

    Q: What is the potential impact of the HSBC and Hang Seng deal?
    A: While increased exposure to the high ROTE market of Hong Kong and reduced operational complexity are expected benefits, there are concerns about provisions for CRE loans.

    Q: Has HSBC’s stock been affected by the announcement to buy Hang Seng?
    A: Yes, the announcement has led to an approximately 8% drop in HSBC’s share price.

    Q: Is there a risk of a bailout related to the HSBC and Hang Seng deal?
    A: There have been speculations about a potential bailout due to Hang Seng’s significant exposure to Hong Kong’s declining commercial real estate sector. HSBC’s CEO, however, maintains that the purchase is aimed at driving growth.