Banking and Finance News & Trends: Dec Week 3

Banking and Finance News & Trends: Dec Week 3

Banking and Finance News & Trends: Dec Week 3

1. Trends

i. Hong Kong IPOs Rebound as PRC Firms Seek Secondary Listing

Hong Kong’s IPO market is rebounding, fuelled by Chinese government stimulus measures, a rally in the Hang Seng Index, and policies encouraging mainland Chinese firms to list in Hong Kong.

Expected Volume Growth: Second listings by mainland Chinese companies (A-share firms) are projected to boost IPO volumes to approximately $15 billion in 2025, up from $10.5 billion in 2024.

Strategic Listings: Companies in government-prioritised sectors like semiconductors, AI (e.g., autonomous driving startup Minieye Technology, which is backed by Alibaba’s co-founder), and new energy (e.g., Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring) are exploring Hong Kong listings. Others include firms in consumer-focused sectors, such as bubble tea chain Guming.

Takeaway: Some potential challenges to the market include:

  • Regulatory unpredictability that can delay offshore listings.
  • Hong Kong IPO proceeds remain below pre-pandemic averages, highlighting room for improvement.
  • External pressures, such as global trade tensions, could impact corporate performance and investor confidence.

Nonetheless, recent successful listings and increasing market buoyancy suggest favourable conditions for IPOs heading into 2025. Figures reported support this, indicating that IPO fundraising has increased 80% year-over-year to HK$83.4b (as of November 2024). Meanwhile, forecasts from EY and KPMG also predict further growth in 2025.

 

ii. Private Banks Rush to Expand their Hong Kong Teams

Private banks in Hong Kong are aggressively expanding to cater to affluent mainland Chinese investors, and jobs in the finance sector reached a record 42,000 in October 2024. The move comes as Chinese investors increasingly seeking offshore diversification. Programmes like the cash-for-residency scheme, tax incentives, and family office benefits have contributed to the inflow of wealth.

Takeaway: Hong Kong’s revival as a wealth hub signals substantial growth opportunities in private banking, family offices, and cross-border investment solutions. Bank of Singapore and Julius Baer have already increased their hiring. Meanwhile, others like UBS, Citigroup and Standard Chartered intend to grow their team in the coming years.

 

2. Business Moves

i. ByteDance Founder gets Hong Kong Asset Management Licence for Private Fund

ByteDance founder Zhang Yiming secured a Type 9 asset management license from Hong Kong’s Securities and Futures Commission for his private fund, Cool River Venture HK. The license enables the fund to engage in real estate investment management and securities and futures contract management activities. This move enables Zhang to use Hong Kong as a base to manage his wealth.

 

ii. Schroders Explores Sale of Indonesia Unit with US$4b AUM

Global asset management firm Schroders is exploring the sale of its Indonesian unit, which manages approximately $4 billion in assets. The decision was made as part of strategic restructuring efforts led by its new CEO, Richard Oldfield. Indonesia accounts for 1.6% of Schroders’ assets under management in Asia Pacific (APAC AUM), and is its second biggest AUM market.

Takeaway:

  • Strategic Shift: Schroders is exiting underperforming markets to refocus on core, profitable areas as active fund managers face increasing competition from passive and alternative investment strategies globally.
  • Potential Buyers: At least four entities, including HSBC, Allianz, and Bank Negara Indonesia (BNI), have shown interest in acquiring the unit. UBS has been engaged as an advisor.
  • Implications: The sale offers potential acquirers a foothold in Indonesia’s growing financial sector.

 

iii. Malaysia’s Mr DIY Plans a S$346m IPO in Indonesia

Mr DIY’s Indonesian unit, Daya Intiguna Yasa, is launching a high-profile IPO on December 19, aiming to raise up to 4.2 trillion rupiah (S$346 million).

  • Plans: The company is targeting Indonesia’s growing middle class, especially in second-tier cities and rural areas where economic growth is primarily driven by commodities. It currently operates about 900 stores, with 60% located outside the Greater Jakarta area. The firm intends to expand into regions outside Java.
  • IPO Details: It is offering 2.52 billion shares at 1,650 rupiah each, which is slightly below initial expectations.
  • Allocation of proceeds: 60% for debt repayment, 30% for new store openings, and 10% for working capital.
  • Company Strengths:
    • Mr DIY is the largest household goods retailer in Indonesia by store count, and it directly manages all locations without a franchise model.
    • It achieved strong same-store sales growth (11% in H1 2024) and robust revenue performance (nearly doubled to 3.2 trillion rupiah).
    • It is valued higher than peers (P/E: 77.73, P/B: 3.11), reflecting a strong market position.

Takeaway: However, potential challenges include weaker middle-class purchasing power, global economic volatility, and a planned VAT hike in 2025. Commodity price stability and economic growth outside Java are key to sustaining purchasing power in the company’s target regions. The move marks the largest Indonesian listing in over a year and is part of Mr DIY’s aggressive expansion in Southeast Asia.

 

iv. CATL Eyes Second Listing in Hong Kong to Raise at Least US$5b

Leading EV battery manufacturer Contemporary Amperex Technology Co. Limited (CATL) is considering a secondary listing in Hong Kong to raise at least $5 billion. The listing is planned for the first half of 2025, pending regulatory approval in China. CATL is valued at 1.2 trillion yuan and has seen a 65% stock price increase in 2024 due to market optimism and stimulus signals.

Takeaway: This potentially makes it the city’s largest IPO since early 2021. The proposed US$5 billion target exceeds Midea Group’s US$4.6 billion IPO in 2024 but remains far from AIA Group’s record US$20 billion IPO in 2010. It offers potential opportunities for institutional investors seeking exposure to the booming EV sector and is a positive signal for Hong Kong’s IPO market recovery.

 

v. GIC Invests US$150m in AHH

Singapore’s sovereign wealth fund GIC announced an additional investment of US$150 million in Asia Healthcare Holdings (AHH), a South Asia-focused healthcare delivery platform. This builds on its initial US$170 million investment in February 2022, bringing GIC’s total investment in AHH to US$320 million. AHH, founded in 2016 and backed by both GIC and TPG Growth, specialises in single-speciality healthcare platforms. Its portfolio includes:

  • Motherhood Hospitals: A pan-India chain specialising in mother and childcare services, neonatal care, and paediatric care.
  • Nova IVF: A leader in fertility solutions.
  • Asian Institute of Nephrology and Urology (AINU): India’s only urology and nephrology speciality hospital network.

To date, AHH has deployed US$300 million across its hospital chains.

Takeaway: The investment reflects confidence in India’s single-speciality healthcare sector, driven by macroeconomic factors like rising incomes, urbanisation, and increasing demand for high-quality speciality care.

 

vi. AI Firm Databricks Hits US$62b Valuation in Round Backed by Top Investors

Databricks achieved a US$62 billion valuation after raising US$10 billion in one of the largest-ever venture capital rounds. Databricks serves 10,000 customers, including notable names like Block, Comcast, Rivian, and Shell. Key highlights include:

  • Positioning: The valuation positions Databricks above competitors like Snowflake (US$57 billion market cap).
  • Fund Use: Funds will support new AI product development, acquisitions, and partial employee stock liquidity.
  • Projection: The company is projected to exceed a US$3 billion revenue run rate by January 2024.

Takeaway: The round is led by Thrive Capital and backed by elite investors such as GIC, Andreessen Horowitz, DST Global, Insight Partners and WCM Investment Management, reflecting the growing interest in firms driving AI integration.

 

vii. Endowus Adds HPS Private Credit Fund in HNW Push

Digital wealth manager Endowus formed a partnership with HPS Investment Partners, one of the world’s leading private credit firms managing $123 billion in private credit assets.

This collaboration allows Endowus Private Wealth clients, which include high-net-worth (HNW) individuals, family offices, and institutions, to access HPS’s evergreen private credit solution and offerings from renowned asset managers like Carlyle, KKR, and PIMCO.

Takeaway: The move aligns with the growing demand for private credit as an asset class and supports HPS’s Asia expansion as the firm seeks to increase its penetration with U/HNW clientele.

 

3. People Moves

i. Banks: UOB, BOS, Lombard Odier, and J. Safra

UOB: UOB’s Head of Group Corporate Banking, Leong Yung Chee, was appointed as the new Group Chief Financial Officer (CFO) effective April 22, 2025. Leong will succeed Lee Wai Fai, who is retiring after 20 years as CFO.

  • Experience: Leong has 25 years of experience in financial services, and his expertise includes corporate banking, M&A, and strategic transformation.
  • Responsibilities: Leong will oversee UOB’s financial strategy, finance, treasury, and data management functions and scale its ASEAN franchise.

Simultaneously, Edmund Leong will take over as Head of Group Corporate Banking while maintaining his role as Head of Group Investment Banking. This leadership refresh complements other recent senior appointments, including Susan Hwee as Head of Group Retail and Lawrence Goh as Head of Group Technology and Operations.

BOS: Experienced private banker Tee Fong Seng will join the board of Bank of Singapore as a board director, effective January 1, 2025.

  • Experience: The retired veteran in private banking previously served as the CEO of Pictet Wealth Management Asia and was appointed Board Vice Chairman of Banque Pictet & Cie (Asia) Ltd in July and Senior Advisor at Pictet Wealth Management Asia. He also held leadership roles at EFG Bank’s Asia Advisory Board, Credit Suisse, and UBS.

Lombard Odier: Lombard Odier appointed Omar Shokur as its new regional head for Asia, Private Clients, and CEO of the Singapore subsidiary, effective March 2025, subject to regulatory approval.

  • Experience: Shokur, formerly the Asia CEO of Indosuez Wealth Management, has over 20 years of experience in wealth and investment management.

This leadership move aligns with Lombard Odier’s strategic focus on strengthening its management team and expanding its private client and institutional business in Asia, especially in key North and Southeast Asian markets.

  1. Safra Sarasin: Brazilian-Swiss private bank J. Safra Sarasin has brought on Jayant Jetley as a managing director in Singapore.
  • Experience: Jetley has ver 20 years of experience. He previously served as a senior advisor and managing director at Julius Baer and held leadership roles at ANZ, Royal Bank of Scotland, ABN AMRO, and Standard Chartered.

 

ii. Wealth: Natixis, KKR, JIA AM, and Barings

Natixis: Natixis Investment Managers (IM) appointed Johan Lim as regional head of wealth for Hong Kong, Singapore, and Southeast Asia.

  • Experience: Lim has over 20 years of asset management experience in APAC, including 16 years at Morgan Stanley Investment Management, where he held a senior role in international distribution.
  • Responsibilities: Lim will be based in Singapore and will lead the firm’s wealth business and oversee the wholesale distribution teams in the region.

KKR: KKR hired former Blackstone executive Yoshi Takemoto as Managing Director to lead its global wealth solutions platform in Japan.

  • Experience: Takemoto previously served at Blackstone, Nikko Asset Management, and Shizuoka Bank.

This move underscores KKR’s commitment to expanding its private wealth strategy in Japan, which represents the largest portion of its APAC portfolio, with $18 billion in assets under management.

JIA AM: Kuala Lumpur-based independent wealth manager JIA Asset Management made two senior-level appointments:

  • Benjamin Pedley: The private banking veteran was named Head of Strategy. Pedley has extensive experience across leading banks in Asia, such as HSBC, LGT, ANZ, and J.P. Morgan, where he served in senior investment-related roles.
  • Joel Brown: Brown joined as a portfolio manager, and he has over a decade of wealth management expertise in Malaysia.

These strategic hires align with JIA’s expansion efforts, including the launch of a proprietary equity-financing fund focused on solar and renewables, alongside other equity and credit products set for early 2025.

Barings: Barings appointed Joseph Wong as Head of Wealth Distribution for Hong Kong and Singapore.

  • Experience: Wong joins the $431 billion US fund manager from M&G, where he held a similar role overseeing intermediary distribution in both financial centres. He also served in a leadership capacity at Franklin Templeton.

 

Discover More Industry Trends with JC

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Image Credits:

  • Reuters
  • Business Times
  • AFP
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