Banking and Finance News & Trends: Oct Week 1

Banking and Finance News & Trends: Oct Week 1

Banking and Finance News & Trends: Oct Week 1

Table of contents

  1. Banking and Finance Industry News
  2. Investment, PE & VC News

 

Banking and Finance Sector News

1. L&D

i. MAS Expands on Leadership Training for Financial Executives

The Monetary Authority of Singapore (MAS) is enhancing the leadership training for financial executives. Two new leadership programmes, the Asian Financial Leaders Programme (AFLP) and the International Postings Programme, are set for launch in 2025. These programmes will target senior executives at the managing director level and above, and high-potential middle-level professionals. The highlights include:

  • The AFLP includes four modules offered by different universities across regions worldwide, and half of the programme’s $50,000 can be subsidised.
  • The International Postings Programme will offer financial institutions greater flexibility in the duration for which Singaporean leaders are posted overseas, with extended funding for up to three years.
  • MAS is offering funding under its Asian Financial Leaders Scheme to cover 50% of programme costs for Singaporeans.

Takeaway: The initiative comes at a time amid of increasing global uncertainty driven by geopolitics, climate change, and emerging technologies. The programme is expected to equip financial professionals with the strategic insights that empower them to respond to challenges with greater agility and decisiveness.

Read the full article about MAS’s leadership programme for finance professionals.

 

ii. New Initiative for Remisiers in Singapore to Upskill

The Securities Association of Singapore (SAS) launched the Remisier Development Programme (RDP), supported by the Society of Remisiers (SRS) and the Singapore Exchange. The programme aims to help remisiers (self-employed stockbrokers) upskill in artificial intelligence (AI), digital marketing, and advanced trading strategies. This initiative is designed to enhance their ability to provide customised portfolio advice to retail investors, ensuring they stay relevant in a competitive market where brokerage fees are declining. The programme also seeks to attract younger talent to the industry, which has a predominantly older workforce.

Takeaway: The RDP is expected to equip remisiers to better offer personalised services and remain competitive against the backdrop of diminishing brokerage fees and the rise in automation.

Read the full article about the RDP in Singapore.

 

2. Markets

i. More Regulations Underway to Protect Retail Crypto Investors

Digital asset firms licensed in Singapore will soon be required to comply with new regulations to enhance consumer protection, especially for retail investors. The regulations will be rolled out in two phases:

  • First Phase: Rolled out on October 4, this focuses on safeguarding customer assets and enforcing crypto firms’ disclosures and risk management controls.
  • Second Phase: To be rolled out on June 19, 2025. This will require firms to assess retail investors’ risk awareness before providing services and will prohibit incentives to attract retail customers.

Takeaway: The regulations aim to mitigate risks associated with high cryptocurrency volatility and to ensure that consumers are well-informed before investing in digital payment tokens (DPTs). These measures are a response to past failures in the crypto sector and align with global trends in enhanced regulatory oversight for consumer protection. While the new regulations may have been expected, the most significant impact will likely be on retail customers’ access to DPT services in the future, as the current measures create additional hurdles for the average consumer to access, understand, and gain first-hand experience with DPTs.

Read the full article about the new regulations for digital asset firms.

 

ii. Malaysia to Roll Out Value-Boosting Plans to Draw Traders

Bursa Malaysia is working on a formal framework to enhance the valuation of local companies and attract more global investors. This framework would involve setting targets for metrics like price-to-earnings ratio and return on equity. While Malaysia doesn’t plan to use aggressive tactics like Japan’s “name-and-shame” approach, it aims to engage with underperforming companies to drive value improvement. The bourse has seen strong performance in 2024, with a significant increase in trading activity and plans for more IPOs in 2025, especially in healthcare and telecommunications. Additionally, there’s potential for dual listings, including Singapore-based companies, which would further boost Malaysia’s equity market profile.

Takeaway: Malaysia is part of a rising group of Asian countries—such as Japan, South Korea, and China—focused on boosting shareholder returns through corporate reforms to improve low valuations and attract more foreign investors. This effort coincides with a surge in listings and a resurgence of confidence in local stocks, fuelled by significant investments in the country’s data centre sector.

Read the full article about Malaysia’s formalisation of its framework.

 

iii. China to Issue US$15b in Offshore Bonds in Q4

Chinese investment-grade companies are set to issue between US$10 billion and US$15 billion in offshore bonds in Q4 2024. The move follows Beijing’s recent economic stimulus measures, which have lowered fundraising costs and spurred demand. The stimulus, which includes interest rate cuts and tighter credit spreads, is driving investor confidence and reducing borrowing costs for Chinese firms.

Takeaway: This marks the highest Q4 offshore debt issuance in three years, signalling a strong rebound in China’s corporate bond market. Financial experts expect this momentum to persist into next year, further boosting overseas financing activities.

Read the full article about China’s overseas bond issuance.

 

3. Business Moves

i. Sarawak Acquires Majority Stake in Affin Bank

Sarawak, Malaysia’s largest state, raised its stake in Affin Bank from 4.81% to 31%, making it the bank’s biggest shareholder. The state already controls Bintulu port and has plans in place to buy Malaysia Airlines’ subsidiary MASwings.

Takeaway: This move, performed through state-owned SG Assetfin Holdings, is part of Sarawak’s broader strategy to gain greater control over key assets that will help strengthen its autonomy over its resources and economy.

Read the full article about Sarawak’s majority stake in Affin Bank.

 

ii. ANZ, Gunawan Family Mulls Sale of Majority Stake in Panin Bank

ANZ and the Gunawan family, who hold a combined controlling interest in Indonesia’s Panin Bank, are considering selling their stakes. Together, their stakes are worth around $2 billion. ANZ has been trying to exit its stake since 2013 but was hampered due to valuation concerns. Last year’s attempt to sell ANZ’s stake drew interest from Japanese lenders Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, but no agreement was finalised.

Takeaway: This move aligns with ANZ’s strategy to scale down its less profitable business segments and decrease its involvement in retail and wealth banking in Asia to improve its return on equity.

Read the full article about the potential sale of Panin Bank.

 

iii. 7-Eleven Owner Seeks Buyers for Part of its Stake in Banking Unit

Seven & i Holdings, the owner of 7-Eleven, is considering selling part of its stake in Seven Bank to demonstrate its focus on its core convenience store business. The sale of Seven Bank would reduce its control over the banking unit, but final decisions have yet to be made.

Takeaway: Seven Bank has been integral to the group’s operations in Japan, contributing significantly to its cash flow despite being a smaller part of its overall profit. This move follows Seven & I’s rejection of a takeover bid from Canada’s Alimentation Couche-Tard, which the company claimed to have undervalued the business. It also comes amid pressure from investors to enhance the company’s valuation. In April, Seven & i explored the possibility of listing Ito-Yokado, its original retail division, which could potentially separate it from the more profitable and rapidly expanding 7-Eleven brand. However, this process, which might lead to an initial public offering for Ito-Yokado, could take several years and may not significantly strengthen Seven & i’s position in negotiations.

Read the full article about the potential sale of stakes in Seven Bank.

 

iv. Santander Launches Regional Headquarters in Dubai

Santander Private Banking launched its regional headquarters in the Dubai International Financial Centre (DIFC) to cater to high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals in the Middle East. The move aims to help Satander leverage DIFC’s regulatory framework and talent pool to enhance its service offerings.

Takeaway: The UAE’s growing wealth demographic, which includes over 68,500 HNW individuals and a projected influx of over 6,700 millionaires, presents substantial opportunities for Santander Private Banking in this lucrative market.

 

3. People Moves

i. Banks: Maybank, RHB, BNP, Crédit Agricole, EFG and SGB

Maybank: Maybank Singapore appointed Datuk Yee Yang Chien as its new Chairman, effective October 1, 2024. He succeeds Datuk R. Karunakaran, who has retired after six years in the role. Datuk Yee has a strong experience with local and international financial institutions. This includes nearly 20 years at MISC Berhad, where he held several key leadership positions.

RHB: RHB Banking Group appointed Ng Chze How as the new managing director and CEO of RHB Asset Management Sdn Bhd. Ng, who has over 20 years of experience in asset management, will lead the group’s asset management and trustee operations. He joins from Manulife and previously held senior roles at various firms, including Prudential Funds and AIA.

BNP Paribas: BNP Paribas Securities Services appointed Laure Ly as the new head of its Hong Kong operations. Ly, who has been with BNP Paribas since 2004, transitioned from Paris to Hong Kong in 2014 and most recently served as head of client development for Greater China. She succeeds Julien Kasparian, who will take on a regional role covering the UK and the Middle East, pending regulatory approvals.

Crédit Agricole: Crédit Agricole appointed Daisaku Chabata as the head of sustainable investment banking for Japan. Chabata has served in various capital markets and private equity-related roles at Daiwa for 18 years and was recently involved in structuring Japan’s government transition financing mandates.

EFG: EFG Bank added three experienced professionals from Citi Private Bank to its Hong Kong team.

  • Seamus Yin has been appointed as the market group head for Hong Kong and China, focusing on “Ultra Clients.” He has over 10 years of experience and previously served as the managing director at Citi Private Bank.
  • Miao Miao and Lianghan Chen joined as team heads and client relationship officers
  • Other members include client relationship officers Jack Wu, Ruby Chen, and Savannah Sun, all of whom have strong industry backgrounds.

SGB: Singapore Gulf Bank (SGB), backed by Bahrain’s Mumtalakat sovereign wealth fund and Singapore’s Whampoa Group, made two C-level hires.

  • Ali AlShamma, who joins as the CFO, has previously served at Goldman Sachs Saudi Arabia and Citigroup Saudi Arabia. He will lead the bank’s financial strategy and focus on connecting markets in Asia and the Middle East.
  • Elaine Leong, who joins as the COO, has previously served at GIC and Sygnum. She will manage SGB’s global operations.

These appointments aim to enhance SGB’s objective of creating seamless interactions between digital and traditional finance. The bank will also launch as Bahrain’s first fully licensed digital bank by November.

Read the full article about SGB’s C-suite hires.

Read the full article about EFG’s three bankers from Citi.

Read the full article about Crédit Agricole Japan head from Daiwa.

Read the full article about BNP Paribas’s Hong Kong head.

 

ii. Financial Institutions: MSCI

MSCI: MSCI appointed Shane Edwards as the new Head of APAC Client Coverage to succeed Kazuya Nagasawa, who is leaving the firm. Edwards has 25 years of experience in the financial sector and has held senior roles at UBS, RBS/ABN Amro, Deutsche Bank, and Macquarie Bank. In addition to his new position, Edwards will have interim responsibility over client coverage for Australia and New Zealand.

Read the full article about Edwards’s role at MSCI.

 

Investment, PE & VC News

private credit and private equity market trends

1. Markets

i. M&As Involving Singapore Surge 29%, Led by Financial Sector

In 2024, Singapore’s total deal turnover reached US$51 billion in the first nine months, a 29% increase from the same period in 2023. This growth solidified its status as a key player in the Southeast Asian mergers and acquisitions (M&A) landscape. The financial sector leads in M&A activity, contributing 19.7% of the total market share, while real estate follows with 15%.

Takeaway: This is largely attributed to notable buyouts, including several transactions exceeding US$1 billion. However, the overall number of transactions has decreased by 25.5%, indicating a shift towards fewer but larger deals. Recent findings from an EY survey indicate a strong sense of optimism:

  • 98% of chief executives in Singapore and globally intending to engage in some type of transaction within the coming year.
  • 50% of Singaporean respondents are looking to pursue M&As.
  • 40% are focused on divestments or IPOs.
  • 33% are seeking strategic partnerships with external parties.

Despite a robust outlook, factors such as geopolitical uncertainty and fluctuating interest rates have influenced the decision for outbound M&As. Notably, outbound deals hit a nine-year low, with 62% of Singapore CEOs reporting recent transaction cancellations or pauses.

Read the full article about the M&A landscape in Singapore.

 

ii. Thailand’s Pension Fund to Invest US$11.6b in Overhaul

Thailand’s social security fund, currently valued at $77 billion, is set to invest $11.6 billion in global private assets to improve its underwhelming average return of under 3% over the past decade. The fund’s board aims to shift its investment strategy from a domestic focus to a more diversified approach. This involves reducing low-risk asset concentration from 70% to 60% and increasing higher-risk investments to 40% by mid-2027.

Takeaway: The change comes at a time when one-fifth of its population is now over 60. It reflects the country’s response to rising pension demands, with projections indicating a growing deficit by 2045 if the current strategy persists.

Read the full article about Thailand’s global investment overhaul.

 

iii. Qatar Wealth Fund Mulls Merger of GBI and QNBN

Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), announced plans to merge the telecommunications businesses of Qatar National Broadband Network (QNBN) and Gulf Bridge International (GBI). The merger will combine QNBN’s domestic fibre network with GBI’s international submarine and terrestrial cable systems, reinforcing competition amid the growing digital landscape in the Gulf states.

Takeaway: This move will establish a leading digital infrastructure champion in Qatar and is expected to enhance its status as a regional and global digital hub. It reflects a broader trend among Gulf states to leverage state-backed companies in advancing national interests beyond hydrocarbons.

Read about the potential merger of QNBN and GBI.

 

2. Business Moves

i. BlackRock Pursues Private Credit Opportunities in India

BlackRock is intensifying its pursuit of private credit opportunities in India, capitalising on the country’s rapidly expanding market. The move is aimed at bridging its gap with competitors by focusing on direct lending across various sectors, including agriculture and hospitality.

Takeaway: With India’s private credit investments hitting a record US$6 billion in the first half of 2024, driven by government growth targets and deregulation, the firm sees significant potential for lending to both established enterprises and emerging entrepreneurs. The robust structure of India’s private credit market, characterised by numerous financiers willing to assume refinancing risks, further enhances its attractiveness. Despite challenges in the broader economy and rising interest rates, global lenders expect the private credit sector to continue its growth trajectory.

Read the full article about Blackrock’s interest in India.

 

ii. Mizuho Buys Minority Stake in US Asset Manager Golub

Mizuho Financial Group acquired a minority stake in Golub Capital, a US-based private credit asset manager. The partnership allows Mizuho to act as the exclusive distributor of Golub’s investment products to retail and HNW investors in Japan. Mizuho’s investment, which represents less than 5% of ownership in Golub’s management companies, will help enhance its investment capabilities and expand its product offerings to meet the evolving needs of Japanese investors.

Takeaway: This marks its first direct investment in a US private credit firm, adding it to the list of banks collaborating with private credit asset managers. Besides partnering with private credit asset managers, firms are also targeting retail investors as a potential growth area for private credit. For instance, Amundi SA and First Eagle Investments have teamed up to raise up to $5 billion for a new private credit strategy aimed at wealthy investors in Europe, the Middle East, and Asia, which provides them access to private loans to mid-sized US companies.

Read the full article about Mizuho’s stake in Golub.

 

iii. UBS Explores Wealth JV in India

UBS is currently negotiating a joint venture with Mumbai-based 360 One Wealth and Asset Management to enhance its wealth management offerings in India. This partnership aims to broaden UBS’s reach to HNWIs, expanding beyond its current focus on UHNW clients.

Takeaway: The Indian wealth management sector, valued at $429.1 billion in 2023, is anticipated to grow at a 4.6% annual rate through 2029. UBS would potentially hold a 26% stake in this venture, which will be its second equity partnership in the APAC region when materialised, with its first being the collaboration with Sumitomo Mitsui in Japan.

Read the full article about UBS’s potential joint venture in India.

 

iv. Kbank Launches PE Firm in Shanghai

Kbank recently established its private equity fund management company, Kasikorn Vision, in Shanghai. The company has secured the QFLP (Qualified Foreign Limited Partner) license that enables it to invest in China’s private equity market using foreign capital.

Takeaway: This makes Kbank the first and only Thai bank to obtain this license. With its new fund, Kasikorn Vision will target high-growth sectors aligned with China’s macro policies, such as AI and advanced manufacturing. The move mirrors the broader trend of rapidly increasing foreign investment in China, as many international firms become eager to capitalise on the rising A-share market. Meanwhile, the local governments are also rolling out efforts to accelerate the attraction of foreign investment.

Read the full article about Kbank’s PE firm in Shanghai.

 

v. HSBC and IFC to Launch Joint Fund for Emerging Market Issuers

HSBC’s asset management unit and the International Finance Corporation (IFC) are launching a joint fund to invest in publicly listed bonds issued by corporate and financial institutions in emerging markets.

Takeaway: The fund, classified under the EU’s strictest sustainability standards (Article 9), aims to attract more institutional investors and direct capital towards sustainable projects, including technologies and social impact initiatives. This collaboration, an extension of an ongoing partnership since 2019, focuses on supporting issuers aligned with the UN’s Sustainable Development Goals (SDGs).

Read the full article about HSBC and IFC’s joint fund.

 

3. People Moves

AM: Fidelity, Fiera Capital, GMO, TPG and Nikko

Fidelity: Fidelity International appointed Damien Mooney as the managing director for APAC (excluding Japan), effective October 28. Mooney joins from BlackRock, where he worked for 13 years as the head of client partnerships and chief marketing officer for the APAC region. He also has prior experience at Fidelity, where he held various senior roles, including regional head of marketing. Mooney replaces Rajeev Mittal, who is leaving the firm after six years.

Fiera Capital: Fiera Capital hired John Cappetta as Managing Director and Head of Asia (excluding Japan and Korea). Cappetta, who has over 34 years of experience in asset management and private banking. He previously served at Ninety One, Julius Baer, Bank of America Merrill Lynch, Van Hedge Funds, Safra Asset Management, and Merrill Lynch. His appointment aligns with Fiera’s strategy to expand its Asia offerings. It also supports the rollout of its decentralised distribution model, which seeks to better serve institutional and financial intermediary clients as demand for specialist and highly customisable public and private market strategies grow in Asia.

GMO: Global investment house GMO (Grantham, Mayo, Van Otterloo) hired Dexter Chua as the head of its intermediary business for Asia (excluding Japan), effective immediately. Chua has over 15 years of experience in the finance industry. He joins from Goldman Sachs Asset Management, and has previously served at JP Morgan Asset Management and BNP Asset Management. In his new role, he will focus on enhancing GMO’s offerings in Singapore and serve the wealth and intermediary segments across Asia.

TPG: TPG promoted Joel Thickins, who oversees Australia and New Zealand, to the role of co-head for its Asia operations as part of broader adjustments to its regional management framework. Thickins will work alongside the current head, Ganen Sarvananthan, to lead the Asia business. Thickins has been with TPG for eight years and has previously held senior roles at diverse companies, including CHAMP Private Equity, Dyno Nobel, Inghams Group Limited and Novotech. His promotion coincides with that of Melbourne and Mumbai partners, Vincent Wong and Mitesh Daga, who are promoted to co-heads of Asia healthcare. Meanwhile, managing partner of TPG’s China business, Chang Sun, will be transitioning to a senior advisory role following his retirement.

Nikko AM: Industry veteran Stephanie Chan has taken on the role of head of intermediary distribution for Asia (excluding Japan) at Nikko Asset Management. Chan previously worked at Nomura International for more than eight years, and most recently oversaw managed portfolios and alternative investments.

Read the full article about Fiera Capital’s MD from Ninety One.

Read the full article about GMO’s Asia head from Goldman Sachs.

Read the full article about TPG’s new Asia co-head.

 

Discover More Industry Trends with JC

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Image Credits:

  • The Edge Malaysia
  • Kasikorn Bank