Banking and Finance News & Trends: Nov Week 5

1. Markets

i. Hong Kong to Waive Taxes on Crypto, Alternative Assets

Hong Kong plans to waive taxes on investment gains from cryptocurrencies and other alternative assets for hedge funds, private equity funds, and eligible family offices. These include private credit, overseas properties, and carbon credits.

Takeaway: It aims to create a favourable environment for wealth managers by reducing capital gains taxes on select asset classes. The move is part of the city’s broader effort to enhance its appeal as a global wealth management and digital asset hub and attract new sources of capital amidst economic tensions between China and the West.

ii. Asian Business Owners, Family Offices Raising Stakes in US Equities, Real Estate

In the wake of the recent US election, more Asian business owners and family offices are boosting allocations to US equities and real estate. US equities have surged, with 43% of investors expecting them to be the top-performing asset class in 2024, up from 27% before the election. US real estate is also gaining traction as businesses benefit from lower taxes, potentially boosting stock prices and lifting the real estate market.

Takeaway: This trend is driven by optimism around President-elect Donald Trump’s pro-business policies, particularly his plans to reduce corporate taxes and red tape. Many investors, especially UHNW families from China, Indonesia, Taiwan, and the Philippines, are seeking guidance on structuring US investments and ensuring tax compliance. UHNW clients, many of whom have ties to the US, are particularly interested in leveraging family offices in Singapore to make investments in the US.

The political shift provides certainty and direction for investors, prompting a review of global tax strategies. However, concerns remain over potential tariffs on Chinese imports and how this could impact businesses with ties to China.

2. Business Moves

i. Singapore to Become Barclays’ Private Bank Booking Centre by 2026

Barclays announced plans to add Singapore as a private banking booking centre by 2026. The bank intends to expand its wealth management team threefold in both India and Singapore as part of its strategy to quadruple regional assets by 2028. Barclays first re-entered Singapore in 2021 and has since been rebuilding its private banking operations.

Takeaway: This marks its return to the wealth hub after selling its wealth businesses in Singapore and Hong Kong to OCBC in 2016. This will position Barclays to capture global and regional wealth inflows from markets such as China and the Middle East, as Singapore competes with Hong Kong and Switzerland for offshore wealth. The move also comes amid intense competition in Southeast Asia’s growing wealth market, where both international and domestic banks are striving to attract high-net-worth (HNW) clients.

ii. UBS to Re-Enter Australia’s Wealth Management Market

UBS is re-entering Australia’s wealth management market after a nearly decade-long absence, leveraging its merger with Credit Suisse to regain ground. UBS will focus on growing its US$30 billion HNW assets in the region. As part of its strategy, the bank is targeting family offices and women—who now outnumber men as clients in Australia. These sectors are seen as rapidly expanding, with the number of female millionaires growing at twice the rate of men.

Takeaway: The bank’s renewed push in Australia comes amid the country’s fast-growing wealth market, which saw HNW wealth increase by 7.9% last year. UBS faces competition from local and international players like Morgan Stanley. To gain an edge, UBS is offering a comprehensive wealth management service, combining its investment banking expertise with wealth management, including direct investment opportunities like Elon Musk’s xAI.

iii. Macquarie Pivots to Japan and India

Global infrastructure investor Macquarie Group is reallocating its investment strategy towards Japan and India. The firm has raised over US$16 billion for its Asia-Pacific (APAC) infrastructure funds and is actively pursuing deals in Japan, with a recent investment in Rakuten’s mobile network. Macquarie is also exploring investments in new sectors like tertiary healthcare and education, alongside its ongoing focus on renewable energy. The firm is also gearing up to raise more funds for upcoming projects.

Takeaway: The move comes as interest in China diminishes due to increasing macroeconomic and geopolitical risks and regulatory uncertainties, which have made markets like Japan, South Korea, India, and Southeast Asia more appealing. Macquarie sees Japan as a growing market for corporate carve-outs and privatisations, while India is attractive due to its rapid economic growth and infrastructure expansion.

iv. Mizuho to Tap Into India’s Private Equity Boom

Mizuho Financial Group is exploring a new initiative to target private equity (PE) and venture capital (VC) firms in India as it seeks to tap into one of the country’s most active dealmaking segments. The Japanese bank has been building its presence in India over the past five years, shifting its loan portfolio from state-backed companies to large conglomerates. Mizuho plans to launch this new push by next year and focus on providing services to financial sponsors, which invest in private businesses and were responsible for US$39 billion in transactions in 2023. This includes offering debt funding, advising on acquisitions, and managing wealth for dealmakers.

Takeaway: This move aligns with similar strategies by global banks like JPMorgan and Deutsche Bank, as well as domestic players like Kotak Mahindra and Axis Bank. It also aligns with its broader strategy in India, which includes a recent investment in Kisetsu Saison Finance that helps it tap into the country’s growing credit demand.

v. Singapore Gulf Bank to Acquire Stablecoins Payment Firm

Singapore Gulf Bank is in talks with a Middle Eastern sovereign wealth fund and other investors to raise at least US$50 million by selling a less than 10% equity stake by early 2025. The funds will support the bank’s product development, expansion of its payment network, and hiring efforts. Additionally, the bank, licensed in Bahrain since February, plans to acquire a stablecoin payments company in the Middle East or Europe in the first quarter of 2025.

Takeaway: This acquisition aligns with growing interest in stablecoins, which offer faster, cheaper, and more accessible payment options than traditional banking. The move reflects optimism in the digital asset sector, which is benefiting from more supportive regulations globally.

3. People Moves

i. Banks: ADB, Citi, HSBC, DBS PB and StanChart PB

ADB: Masato Kanda, Japan’s former Vice Finance Minister for International Affairs and renowned as “Mr Yen” for his decisive currency interventions, was appointed as the next president of the Asian Development Bank (ADB), effective February 24, 2025.  He succeeds Masatsugu Asakawa and will complete the remainder of Asakawa’s term until November 2026. His appointment continues the tradition of Japanese leadership at the ADB alongside the US.

• Responsibilities: Kanda will address issues like poverty reduction, infrastructure development, and climate change mitigation in Asia.
• Takeaway: Kanda takes office amidst heightened pressure on multilateral development banks to amplify climate financing, particularly in Asia—one of the world’s most disaster-prone regions. This comes as global efforts on climate change face uncertainty with shifting US policy under President-elect Donald Trump.

Citi: Citi appointed former BlackRock portfolio manager Kate Moore as its new Chief Investment Officer for the wealth division, effective February 2025. Moore will replace Steven Wieting, who served as interim CIO since May.

• Responsibilities: Moore will oversee Citi’s chief investment office, global investment committee, and sustainable investing team. She will also drive the development of independent investment strategies for the bank’s wealth management clients.
• Experience: Moore previously served as head of thematic strategy for BlackRock’s US$50 billion Global Allocation business and has held senior roles at JP Morgan Private Bank, Bank of America Merrill Lynch, Moore Capital, and Morgan Stanley.

HSBC: HSBC’s Chief Sustainability Officer, Celine Herweijer, has stepped down. The move follows a management reshuffle, which saw her removed from the bank’s executive committee. Herweijer, who had been instrumental in shaping the bank’s climate policy, will leave to pursue new opportunities. This reshuffle raised concerns among investors and stakeholders about potential changes to HSBC’s climate commitments under new CEO Georges Elhedery. Despite this, HSBC emphasised that supporting the transition to net zero remains a core priority, with the goal of achieving net zero by 2050. In the interim, Julian Wentzel, Head of Global Banking for the MENA region, will serve as the Group Chief Sustainability Officer.

DBS: Gloria Sun, previously the North Asia group head at Deutsche Bank Private Bank, is set to join DBS Bank’s Private Bank as a market head for their North Asia team. Operating from Hong Kong, she will also oversee the Taiwan market and report to Carol Shuyen Wu, the head of private banking for North Asia at DBS.

StanChart PB: Standard Chartered Global Private Bank appointed Derek Too as Head of Wealth Planning & Family Advisory for Singapore. Too has over 15 years of experience in advising HNW and ultra-high-net-worth (UHNW) clients on succession planning. He previously worked at UBS, Société Générale Trust, and HSBC and has experience in tax consultancy in Singapore and Australia.

ii. Wealth: Raffles FO and Pictet

Raffles FO: Raffles Family Office (RFO) appointed two former UBS executives to its Hong Kong team:

• Barry Tse has joined as managing director of relationship management. Tse has extensive client advisory experience and has previously worked at UBS, Julius Baer, Macquarie Bank, and Man Investments. He is a chartered financial analyst and chartered alternative investment analyst.
• Cherie Liu took on the role of Head of Marketing and Communications. Liu has over 20 years of experience in private banking and wealth management, including executive roles at UBS and Credit Suisse.

The move follows recent appointments, including Chris Chong (former LVMH executive) as a board advisor and Terence Chow (former CEO of RBC Wealth Management Asia) as Chief Operating Officer.

Pictet: Pictet Wealth Management added four experienced private bankers to its Hong Kong office to enhance coverage of various markets.

• Egwin Sung: Appointed as market head for Hong Kong, effective December 13. Sung joins from J.P. Morgan Private Bank, where he led a team serving UHNW clients in Greater China.
• Michael Chuan: Appointed as executive director and senior private banker for Taiwan. Chuan was previously with J.P. Morgan and specialises in UHNW clients in Greater China. He has also served at UBS and Walmart (China) Investment Company.
• Andrew Whiting: Appointed a private banker. Whiting has 25 years of experience at HSBC and focuses on international HNW and UHNW clients in Hong Kong.
• Jacky Ho: Appointed a private banker. Ho was previously UBS’s director and client advisor for UHNW families and institutional clients in Hong Kong and Southeast Asia and has also served at Credit Suisse.

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Image Credits:

• 99bitcoins
• Reuters