Banking and Finance News & Trends: Aug Week 2
Banking and Finance News & Trends: Aug Week 2
Banking and Finance Sector News
1. Market: HKMA and Cyberport Jointly Release GenAI Sandbox
The Hong Kong Monetary Authority (HKMA) and Cyberport have launched a generative AI (GenAI) sandbox designed to support banks in adopting AI while managing associated risks. This initiative provides a controlled environment, offering computing resources and supervisory guidance for banks to run trials for GenAI applications. The sandbox is expected to aid in areas such as risk management, anti-fraud measures, and customer experience enhancement.
Takeaway: As AI adoption accelerates, the focus becomes balancing innovation with ethical considerations and robust governance to maintain trust and compliance.
Read the full article about Hong Kong’s GenAI sandbox.
2. Business Moves
i. Millennium Advisors Enters Singapore as Asia Credit Trading Soars
Millennium Advisors expanded its trading and sales operations into Asia. The firm chose Singapore over other potential locations like Hong Kong and Dubai, and trading began in early July.
Takeaway: The move comes amid growing demand for electronic fixed-income trading in Asia, where more than half of investors now use e-trading. Concurrently, Asian investors’ demand for US dollar bonds is also rising, presenting growth opportunities.
Read the full article about Millenium’s entry into Singapore.
ii. UOB to Move Middle and Back Office Operations to Malaysia
UOB is shifting some of its back and middle-office operations to Kuala Lumpur, Malaysia, as part of a broader strategy to manage costs and maintain a cost-to-income ratio of 40% by 2026. This move is also intended to help sustain its return on equity (ROE) at around 14% by the same year.
The move is part of the bank’s growth strategy, which emphasises expansion in key ASEAN markets—Indonesia, Malaysia, Thailand, and Vietnam—to increase its income from these regions to 30% by 2026. UOB also aims to boost its non-interest income, particularly from wealth management, trade finance, and customer treasury services, which is expected to make up 37% of overall income by 2026. Meanwhile, UOB’s wholesale business is focusing more on trade, cash management, and treasury.
Takeaway: The bank’s retail business is expected to be poised for growth in these markets following the acquisition of Citi’s retail franchise in the region and regional wealth growth.
Read the full article about UOB’s plans for Malaysia.
iii. DBS and Ant International Launch Treasury Tokens
Singapore’s largest bank, DBS, launched a pilot project in partnership with Ant International to streamline cross-border treasury and liquidity management. As part of the project, Ant International can leverage DBS’ blockchain to use digital tokens for instant, multicurrency treasury operations across various markets, enhancing the efficiency and transparency of fund movements.
Takeaway: Integrated with Ant’s Whale platform, this initiative is expected to reduce settlement times from days to seconds, giving corporate treasurers better control over cash positions.
Read the full paid article about DBS and Ant International’s collaboration.
iv. Robo-Advisor Syfe Secures US$27m for Hong Kong Expansion
Singapore-based robo-advisor Syfe secured $27 million in funding from UK family offices and existing investors to expand its operations in Hong Kong. The capital boost will help the firm tap into the city’s lucrative market, where 55% of adults fall under the mass affluent category, possessing investable assets between $100,000 and $1 million. The firm plans to introduce more innovative financial products and deepen partnerships with banks and insurers to enhance its offerings. This includes exploring the Wealth Management Connect scheme and the potential opportunities within the Greater Bay Area.
Takeaway: Analysts note that Hong Kong’s financial environment, bolstered by incentives and a strong professional services network, remains highly attractive to family offices and fintech startups.
Read the full article about Syfe’s plans for expansion in Hong Kong.
v. Sumitomo Mitsui and Emirates NBD Eyes Stake in Yes Bank stake
Sumitomo Mitsui Banking (Japan) and Emirates NBD (Dubai) are in advanced discussions to acquire a 51% majority stake in Yes Bank. The State Bank of India (SBI), the nation’s largest state bank, currently holds a 24% stake in Yes Bank and is expected to finalise the sale by March 2024. This follows Yes Bank’s restructuring in 2020, led by the Reserve Bank of India (RBI) and a consortium of local banks. The potential buyers are seeking regulatory leniency on shareholding rules, and RBI has given preliminary approval for the sale.
Takeaway: The move may also be a prudent exit strategy for SBI. Meanwhile, Yes Bank’s change in ownership structure will allow global financial players to enter the Indian market and shape the competitive landscape. However, discussions might be postponed due to fluctuations in the Japanese market and a simultaneous government-led sale of a stake in IDBI Bank.
Read the full article about the bid for Yes Bank’s stake.
vi. State Street Broadens Scope of its Islamic Offerings
Boston-headquartered State Street expanded its Islamic finance offerings. The firm now provides Shariah-compliant global custody and fund administration services backed by certification from Amanie Advisors. The Islamic finance sector is poised for significant growth, with assets expected to rise from $4.5 trillion in 2022 to $6.67 trillion by 2027, driven by factors such as a growing Muslim population and lower interest rates.
Takeaway: The move aligns with State Street’s growing interest in Shariah-compliant services in regions like Malaysia and Brunei, where demand is growing and where it has a longstanding presence.
Read the full article about State Street’s Islamic offerings.
3. People Moves
BEA, BNP Paribas AM, BNY Investments, Pacific Life Re
BEA: The Bank of East Asia (BEA) appointed Jaye Chiu as the regional head of private banking for Hong Kong and Singapore. Chiu has nearly two decades of experience in Asia’s private banking industry and recently led BEA’s investment products and advisory department. He has held various product and portfolio management roles at several major financial institutions, including BMO Private Banking, EFG, BNP Paribas, HSBC, and UBS.
BNP Paribas AM: BNP Paribas Asset Management hired Florence Wong as the new head of institutional sales for Hong Kong and Macau. Wong succeeds Ross Lu, who will move to a different role within the BNP Paribas Group. Wong has over two decades of experience in institutional sales and asset management. She recently served as an Asia investment specialist at Macquarie Asset Management.
BNY Investments: BNY Investments hired BlackRock’s Nick Shen as the head of business development for their offshore operations in Taiwan. Shen, who is based in Hong Kong, will lead the offshore sales strategy for BNY’s Taiwan distribution business. During his tenure at BlackRock, Shen led the insurance business for Taiwan’s institutional clients. He has also served at Macquarie Asset Management.
Pacific Life Re: Pacific Life Re has made several key senior appointments in its Asia Pacific (APAC) protection business.
- Tyson Johnston was promoted to managing director of protection for APAC and global strategy, and he will oversee growth in the region.
- Martyn Gilling, a 25-year veteran, will become the new general manager for protection and take over many of Johnston’s previous responsibilities in Australia.
- Matthew Larkin will succeed Gilling as the head of client solutions for Australia.
Read the full article about Jaye Chiu’s role at BEA.
Investment, PE & VC News
1. Trends: ADGM Sees a 31% Increase in Company Registrations
The number of companies establishing a presence in Abu Dhabi’s financial hub, ADGM, rose by 31% in the first half of the 2024. Among the prominent figures moving into the city are billionaire Ray Dalio, who established a branch of his family office in Abu Dhabi last year, and industry leaders like Brevan Howard. Meanwhile, banks like Goldman Sachs and Rothschild, which have typically chosen Dubai as their regional hub, are now opening smaller offices in Abu Dhabi and Riyadh to better serve their clients. In contrast to global financial centres like Wall Street and London’s Canary Wharf, the ADGM and other regional hubs are also experiencing significant demand for commercial real estate, prompting them to initiate expansion plans.
Takeaway: This growth reflects the rising appeal of Abu Dhabi as a financial hub to banks, hedge funds, family offices, and other financial services firms.
Read the full article about the financial services sector’s growing interest in Abu Dhabi.
2. Business Moves
i. L Catterton Invests Strategically in Chinese Beverage Firm Viee
L Catterton, a global investment firm with ties to LVMH, made a strategic investment in Viee, a Sichuan-based beverage company known for its plant-based drinks popular in southwestern China. Viee’s drinks, made from peanuts and walnuts, are frequently consumed with spicy dishes, a hallmark of Sichuan and Chongqing cuisines. Viee has built a robust supply chain and distribution network, and its earnings have reached record highs, showcasing its strong market presence. This investment will help Viee strengthen its market leadership in the region and support its expansion into neighbouring provinces. It capitalises on Gen Z’s growing demand for healthier, non-alcoholic beverages and the increasing popularity of dining out. The investment is noteworthy as it’s Viee’s first external financing and L Catterton’s first investment in China in 2024.
Takeaway: As the primary market faces a capital crunch and a scarcity of quality projects, venture capital firms are placing increasing emphasis on evaluating the cash flow of potential investments. Simultaneously, with a sharp reduction in the number of IPOs, consumer-focused investments, particularly those with strong cash flow, have returned to the spotlight for investors. L Catterton’s strategic investment in Viee is undoubtedly one of the most significant investments in China’s consumer market this year.
It also highlights a current logic for investing in China’s consumer sector: identifying leading regional brands and scaling them nationally, or even globally. As China’s economy enters a stock-based consumption era, the country is set to usher in a new era of billion-yuan national brands.
At the same time, mergers and acquisitions in the consumer industry are also gaining momentum. This year, many consumer funds have revealed that they are helping portfolio companies explore M&A opportunities. Many consumer assets are undervalued right now, and buyers with significant cash reserves are well-positioned to seize the opportunity. For consumer investors, China, with its large population and unified market, offers the greatest opportunities. For consumer companies, this is the golden era for creating iconic national brands.
Read the full Chinese article about L Catterton’s investment in Viee.
ii. Blackstone Acquires Dongbai Group’s Logistics Assets
Blackstone has made another notable investment in China, acquiring a 20% stake in four logistics subsidiaries from Dongbai Group for RMB 279 million. This is a continuation of Blackstone’s investments in these assets, as they had already acquired an 80% stake between 2018 and 2020, totalling approximately RMB 1.362 billion.
Takeaway: Over the years, Blackstone has steadily acquired the remaining 80% stake in these assets, demonstrating its long-term interest in the Chinese logistics sector. This move aligns with Blackstone’s broader strategy of aggressively expanding its logistics real estate to tap into the booming e-commerce sector and rising demand for warehousing. The trend is not exclusive to Blackstone. Competitors like KKR and Carlyle are also aggressively investing, sensing that current low valuations present prime opportunities for significant returns.
Read the full article about Blackstone’s interest in logistics.
iii. Li Ka-Shing Scoops Up British Wind Farms in £350m Acquisition
Li Ka-shing’s CK Group has acquired a portfolio of 32 UK wind farms for £350m, further solidifying its position in the UK’s energy market. The acquisition adds to CK Group’s growing portfolio of utility assets, including major gas, electricity, and water distribution networks. This is also CK Group’s third major infrastructure purchase this year, following earlier investments in a natural gas network in Northern Ireland and a portfolio of 70 solar, wind, and hydropower assets in the UK. The latest acquisition strengthens CK Group’s focus on sustainability by adding to its growing renewable energy footprint.
Takeaway: The portfolio, which spans England, Scotland, and Wales, is expected to deliver stable cash flow and immediate returns through inflation-linked government subsidies and power purchase agreements.
Read the full paid article about CK Group’s investment in British wind farms.
3. People Moves
i. Investment: Lighthouse, BlackRock, NEBA and Neuberger
Lighthouse: Independent asset manager Lighthouse Canton hired three senior executives for its Singapore and London offices:
- Amrit Singh was named the new Global Head of Key Clients and Institutions and will be based in Singapore. He has 25 years of experience and has served as the head of wealth management for global South Asia at Deutsche Bank.
- Balaji Prasanna was named the Executive Vice Chairman for Key Client Solutions and will also be based in Singapore. He has 35 years of experience in the financial sector and served as the vice chair of Deutsche Bank.
- Henrik Aslaksen was named the President of Lighthouse Canton International and will be based in London. He has over 30 years of experience and has served as Credit Suisse’s executive chairman of investment banking and capital markets EMEA.
All three executives are also co-founders of multi-family office AWM Capital Partners. They will join Lighthouse Canton’s executive committee, and Singh will also be part of the board of directors.
BlackRock: BlackRock appointed Tomoko Ueda as the new Chief Operating Officer (COO) for APAC. Ueda, who joined BlackRock in 2022 as the head of corporate strategy and development for the region, will oversee business operations and manage the finance, corporate strategy, and development teams. She will be relocating from Tokyo to Hong Kong to assume her role on 3 September. Ueda succeeds James Raby, who is moving to New York to become the global head of compliance. Ueda’s prior experience includes leadership roles at Nikko Asset Management, Morgan Stanley, and Merrill Lynch.
NEBA: NEBA Private Clients, part of the UK-based financial services group Team, hired three partners:
- Ben Stubberfield, based in the Middle East, has a strong background in managing high net worth (HNW) clients and focuses on financial planning and investment management.
- Ciprian Bratu, based in Malaysia, will focus on offering financial advice and support.
- Craig Penketh, who was based in the UAE for the past 13 years, specialises in financial planning and investment management. He has a strong background in HNW wealth management.
The expansion comes as global tax changes drive wealthy individuals and families to migrate to regions like the UAE and Singapore, which offer more favourable tax environments.
Neuberger Berman: Neuberger Berman appointed Simon Cheung as Senior Vice President to enhance its coverage for single-family offices in Hong Kong and Southeast Asia. Cheung has 28 years of experience in the finance and single-family offices space. He has served at institutions like UBS, Goldman Sachs, China Minsheng Financial and J.P. Morgan.
Read the full article about Lighthouse’s executive appointments in Singapore and London.
Read the full article about Ueda’s promotion to APAC COO.
Read the full article about Neuberger’s appointment of Cheung.
ii. Family Office: Weybourne, Capital Group and Carret Private
Weybourne: Jane Simpson was promoted to Chief Investment Officer (CIO) at Weybourne. Weybourne has a presence in the UK and Singapore, and it is the family office managing British billionaire James Dyson’s financial investments, which spans hedge funds, real estate, and venture capital. Simpson, previously the Deputy CIO, takes over from Bjorn Thelander, who stepped down after nearly six years. Simpson’s approach highlights the importance of partnering with local experts globally, rather than direct involvement in private equity or markets, and reflects how family offices are becoming more strategic, selective, and mindful of brand reputation. This promotion also reflects a growing trend of women advancing to top roles within family offices, though women still represent only about 20% of this sector globally.
Capital Group: US asset management firm Capital Group hired Stella Xu to lead its institutional business in Greater China. Xu has over 18 years of experience, and will be based in Hong Kong. She most recently served as Fidelity International’s head of institutional sales for China and Hong Kong.
Carret Private: Carret Private Capital Limited appointed Meenakshi Amarnani as the new Executive Director – Relationship Manager, effective August 1. Amarnani has over 14 years of experience in private banking, and has served in leadership capacity at EFG Bank AG, Julius Baer, and BoFAML. She will contribute in expanding Carret Private’s focus on the Non-Resident Indian (NRI) market, particularly in managing ultra-high-net-worth (UHNW) clients.
Read the full paid article about Dyson family office’s new CIO.
Read the full paid article about Capital Group’s exec from Fidelity.
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- Green Queen
- UOB
- Bloomberg