Industry News & Trends Recap: January Week 4 

This week, our recruitment consultancy focused more on APAC’s notable industry news from the past week for the following sectors:

 

Table of contents

1. Finance Industry News
2. Investment, PE & VC News
3. Legal Industry News
4. Healthcare & Life Sciences News
5. Luxury & Retail News
6. Tech & AI News

 

Finance Industry News

1.

Banker Salaries in Asia Fall Under $1 Million as Bonuses Disappear

Senior investment bankers in Asia are facing their lowest pay levels in nearly two decades due to a significant reduction in deals, especially in China and Hong Kong. Compensation for many senior bankers in Asia ex-Japan has fallen to between $700,000 and $800,000, with around 20% of managing directors at major banks receiving no bonuses last year. This decline in pay is partly due to cost-cutting efforts amid a severe deal drought, which has also led to job cuts across several firms.

Read the full article about banker’s pay trends

 

2.

RBC Wealth Management Announces Key Senior Leadership Hires in Asia

RBC Wealth Management has bolstered its Asian team with key senior hires from Credit Suisse to enhance its client and investment strategies in the region. These include:

• Eric Kang, who joined RBC in Singapore as Senior Advisor, Southeast Asia.
• Bernard Chua, who joined RBC in Singapore as a Senior Investment Counsellor.
• Terrence Yeung, who joined RBC in Hong Kong as Director, Fixed Income Specialist.

Read the full article about the three senior hires at RBC

 

3.

Hong Kong’s Finance Sector Voices Challenges in AI Adoption

Over 60% of Hong Kong financial professionals identified data availability and cybersecurity as major challenges in implementing AI in the financial services sector. While Hong Kong’s AI development in this sector is comparable to other financial hubs, a skills gap in the workforce and cybersecurity concerns are significant, under-addressed issues. Professionals also called for stronger AI regulations, data governance frameworks, and collaboration within the Greater Bay Area, among other measures, to promote further use of AI in the fintech industry.

Read the full article about Hong Kong’s AI adoption in the financial services sector

 

4.

Singapore Launches SSFA to Develop the Sustainable Finance Sector

The new Singapore Sustainable Finance Association (SSFA) has been launched to develop local talent, industry standards, and financing solutions for sustainable finance. The association will focus on talent upskilling, capacity building, creating industry best practices, and developing standards to prevent greenwashing. Additionally, the SSFA aims to facilitate collaboration across financial and non-financial sectors, supporting low-carbon transition and sustainable growth in Singapore and the region.

Read the full article about the SSFA’s plans

 

5.

Former Credit Suisse APAC Asset Management Head Leaves UBS

Min Huang, former head of Credit Suisse’s asset management in Asia Pacific and recently appointed China client coverage head for UBS Asset Management, is leaving UBS. The movement comes amid UBS’s review of its China business and global leadership changes. The bank also appointed Aleksandar Ivanovic as the new global head of its $1.6 trillion asset management division.

Read the full article about UBS’s leadership changes

 

Investment, PE & VC News

1.

New Policies Boost Hong Kong’s Offshore Yuan Trading and Green Fintech Hub Status

Hong Kong’s position as an offshore yuan trading hub is set to be bolstered by new policies from the People’s Bank of China, which aim to enhance wealth management and the Bond Connect transborder investment channel. These policies include:

• Easing cross-border payment rules within the Greater Bay Area, which will benefit local developers.
• A new cross-boundary credit referencing policy, which will enable Hong Kong and mainland banks to share company credit information.
• Allowing foreign investors to leverage domestic bonds as collateral for obtaining yuan-based financing from the Hong Kong Monetary Authority.

The policies are expected to ease cross-border financing and access to affordable funding, support central bank digital currencies and improve liquidity for bond investors, attracting more investors to buy in onshore yuan bonds.

Read the full article about the advantages of these Chinese policies

 

2.

Hong Kong Announces Subsidy for Green Fintech Start-Ups

The Hong Kong government is set to introduce a subsidy scheme to provide early-stage funding support for start-ups specialising in sustainability data collection, analysis, and reporting. This initiative, which will be rolled out in the first half of 2024, aims to establish the city as a green fintech hub. The bureau is also developing a road map based on the International Sustainability Standards Board’s guidelines. At the same time, Hong Kong Exchanges and Clearing will require upgraded climate disclosures from listed companies, and the Hong Kong Monetary Authority will introduce a taxonomy for green finance to aid sectors transitioning to low-carbon operations.

Read the full article about Hong Kong’s subsidy and plans for green fintech

 

3.

Dubai Sees Increased Interest from Chinese Asset Managers

Chinese asset managers increasingly seek licenses to operate in Dubai, indicating strengthened business ties between China and the Middle East. While large Chinese commercial banks previously dominated Dubai’s International Financial Centre (DIFC), more asset managers are now joining to seek diversification in response to ongoing China-US tensions. More wealth managers and family offices from Hong Kong and Singapore are also setting up operations in Dubai, attracted by its safe haven status, neutral politics, and favourable policies.

Read the full article about the Chinese’s interest in the Dubai market

 

4.

China Consolidates Three Key Asset Managers into China Investment Corp

As part of a financial institution reform, China will merge three major bad debt managers – China Cinda Asset Management, China Orient Asset Management, and China Great Wall Asset Management – into the sovereign wealth fund China Investment Corp (CIC). This move aligns with the government’s aim to separate its regulatory and shareholder roles in state-owned financial entities amid efforts to manage risk in its $63 trillion financial sector, struggling with local government debt and a real estate crisis. The merger excludes China Huarong, recently renamed China CITIC Financial Asset Management, which CITIC Group took over in a restructuring effort.

Read the full article about the asset management companies’ merger

 

5.

Sygnum Exceeds US$35 Million Target in Oversubscribed Funding Round

Sygnum, a global digital asset banking group, has raised over $40 million in its latest funding round, surpassing its initial US$35 million target and achieving a post-money valuation of US$900 million. The round, led by Azimut Holding, saw participation from other investors and Sygnum employees, with Sygnumers, the company’s co-founders, board members, and management maintaining the majority ownership. The funds will be used to expand Sygnum’s geographic reach, develop its B2B platform, and enhance its regulated product offerings.

Read the full article about Sygnum’s financing

 

Legal Industry News

1.

Global Organisations Expect an Increase in ESG-Related Legal Challenges

A Baker McKenzie survey reveals that nearly one-third of senior legal and risk leaders in large global organisations anticipate an increase in disputes this year, with 73% expecting a rise in ESG-related litigation risks. The survey, involving 600 executives from the UK, USA, Singapore, and Brazil, underscores concerns about environmental issues beyond carbon emissions, social disputes, and the widening scope of ESG disputes affecting areas like human rights. Additionally, over half of the respondents see employment-related disputes as a significant risk, driven by ESG focus and changing legislation. Meanwhile, only 16% feel fully prepared for litigation, and many are concerned about potential increases in internal or external investigations, especially regarding cybersecurity and data privacy.

Read the full article about the Baker McKenzie study

 

2.

MHM Becomes Second Major Japanese Law Firm to Form Alliance in the Philippines

Japanese law firm Mori Hamada & Matsumoto (MHM) has strategically allied with Manila-based Tayag Ngochua & Chu (TNC). The move expands its ASEAN presence, which now comprises seven locations, including Singapore. It also makes MHM the second major Japanese law firm to form an alliance in the Philippines, following Nishimura & Asahi, which partnered Sy & Partners in the Philippines last September.

Read the full article about MHM’s alliance with TNC

 

3.

Singapore’s Allen & Gledhill Expands Into Shanghai

Singapore’s Allen & Gledhill law firm has opened its first office in Shanghai, marking its debut in China and its first expansion outside the ASEAN region. This new office, part of the company’s wider regional network, will be staffed by local lawyers skilled in international affairs. The Shanghai office will advise on various legal matters, including corporate affairs, M&A, banking & finance, real estate, joint venture, private equity and wealth, arbitration and compliance. The launch aligns with the trend of Singaporean firms adopting regionalisation strategies.

Read the full article about Allen & Gledhill’s expansion

 

4.

2023 Sees Rise in Individual Bankruptcy Filings & Corporate Insolvency Applications

Singapore witnessed an 18-year high in individual bankruptcy applications in 2023, reaching nearly 4,000, along with a rise in corporate insolvency applications and company wind-ups. The increase in individual and corporate financial distress is attributed to economic factors and inflation.

Read the full article about the trend of corporate insolvency

 

5.

Mayer Brown Appoints New Partner in Singapore

Global law firm Mayer Brown has strengthened its trade and structured finance expertise by welcoming Janelene Chen as a new partner in its Singapore office. Chen specialises in trade and structured finance transactions, bringing a wealth of experience advising financial institutions and corporate borrowers on cross-border financing, particularly in Singapore, Indonesia, Indochina, Hong Kong, and mainland China. She joins Mayer Brown from Norton Rose Fulbright, where she previously served as a partner.

Read the full article about Mayer Brown’s new partner

 

Healthcare & Life Sciences News

1.

J.P. Morgan Healthcare Conference 2024: Optimism in the Industry

The 2024 J.P. Morgan’s Healthcare Conference marked a potential turnaround in healthcare dealmaking. Five deals totalling $8.2 billion were announced, suggesting a rise in M&A activity, fuelled by recent regulatory approvals and a record number of novel drug approvals by the FDA. Key highlights of the event included the growing role of AI in drug discovery and patient care, the emergence of remote patient monitoring technologies, and the focus on innovative therapeutic developments. These indicate a bright outlook for healthcare and technology integration in 2024 and beyond.

Read the full article about J.P. Morgan’s Healthcare Conference

 

2.

Pharmaceutical Giants Brace for Impact from Upcoming Patent Cliffs

Major pharmaceutical companies face significant revenue risks as patents on their blockbuster drugs expire, opening the market to lower-priced generic competitors. This patent cliff could affect tens of billions of dollars in sales between now and 2030. However, companies are strategically preparing to mitigate these losses through development of new drug pipelines and partnerships, as well as exploring new forms of existing drugs.

Read the full article about the strategies adopted by the pharma companies

 

3.

RayzeBio Attracted Multiple Bidders Prior to Bristol Myers Acquisition

Prominent radiopharmaceutical drugmaker RayzeBio attracted multiple acquisition proposals before settling on a US$4.1 billion deal with Bristol Myers Squibb, as disclosed in recent regulatory filings. The pharmaceutical industry’s growing interest in radiopharmaceuticals is exemplified by this deal, with Novartis and Eli Lilly also actively investing in the field.

Read the full article about the industry’s interest in radiopharmaceuticals

 

4.

Sanofi Agrees to Buy Inhibrx for US$2.2 Billion

Sanofi has agreed to acquire Inhibrx for up to US$2.2 billion, gaining a potential therapy for Alpha-1 Antitrypsin Deficiency, an inherited genetic condition. This acquisition, financed through available cash, aligns with Sanofi’s strategy to expand in areas like cancer, gene therapy, and rare diseases and follows a commitment to boost R&D investments.

Read the full article about Sanofi’s acquisition

 

5.

Singapore-Based GDMC Raises US$21 Million in Series A Funding

Genetic Design and Manufacturing Corporation (GDMC) in Singapore has secured US$21 million in Series A funding, with Hong Kong’s Celadon Partners leading the round. The funds will be used to enhance novel technology and process efficiencies, thus reducing manufacturing costs for partners developing advanced therapy drugs. GDMC is also building a large facility in Singapore for cell, gene, and nucleic acid therapies, which will open in stages between 2024 and 2027.

Read the full article about GDMC’s Series A funding

 

Luxury & Retail News

1.

LVMH Reports 10% Rise in Q4 Sales as Luxury Shoppers Show Resilience

LVMH, a luxury goods conglomerate seen as a bellwether for the luxury industry, reported a 10% increase in fourth-quarter sales, driven by solid demand for high-end fashion, including from Chinese buyers. The group, which owns brands like Louis Vuitton, Dior, and Tiffany, has shown resilience in the luxury sector, particularly in its most expensive products. It is optimistic about continued growth in 2024 despite economic uncertainties.

Read the full article about LVMH’s growth

 

2.

Lazada CEO Takes Helm of Alibaba’s South Asian Unit Amid Leadership Reshuffle

Alibaba Group’s South Asian online retailer Daraz Group has appointed James Dong, the current head of Alibaba’s Southeast Asian arm Lazada Group, as its new acting CEO. James Dong will be replacing founder Bjarke Mikkelsen. The change is part of a series of management shifts at Alibaba, which faces challenges from a slow post-Covid market, government crackdowns, and competition from rivals like PDD Holdings and ByteDance.

Read the full article about Daraz Group’s new appointment

 

3.

Luxury Brands’ Strategies Vary in Response to China’s Economic Performance

While some leading international luxury brands are expanding their presence in China with larger flagship stores, others are shifting focus to online marketing. Brands like Hermes, Louis Vuitton, and Christian Dior are investing in mega flagship stores in major Chinese cities, targeting a wealthy client segment known as “Very Important Clients” (VICs). In contrast, brands like Michael Kors are looking beyond big cities, and moving towards online platforms. These include e-commerce and livestreaming for targeting new customers, particularly the younger demographic and those in smaller cities.

Read the full article about luxury brands’ strategies

 

4.

Selkie’s Backlash for Using AI in Design Sparks Debate in Fashion Industry

Selkie, a brand known for sustainable “slow fashion,” has sparked controversy by using generative AI in its designs, most notably in its 2024 Valentine’s Day collection. Critics argue that this undermines the brand’s commitment to originality and sustainability. However, Selkie defends its use of AI as a means to stay ahead in the industry, noting that other major brands like Valentino, Prada, Gucci, and H&M have also adopted AI for various purposes. While some experts see AI as a tool that enhances creativity without replacing human input, others worry about its impact on the authenticity of designs, especially in brands championing ethical production.

Read the full article about Selkie’s AI backlash

 

5.

Vestiaire Collective Initiates Crowdfunding, Targets IPO in 2025

French fashion resale platform Vestiaire Collective, supported by luxury fashion conglomerate Kering, seeks to raise at least €1 million through crowdsourcing from its European and UK customer base. The move aims to expand market share and achieve profitability ahead of a potential IPO.

It will offer investing customers preferred shares alongside prominent investors like Eurazeo, Condé Nast, Bpifrance, Kering, and Generation Investment Management. Despite the growing attractiveness of the second-hand fashion market, profitability remains challenging for resale platforms, as highlighted by the losses reported by similar companies like Vinted and Depop in FY2020/21.

Read the full article about Vestiaire Collective’s plans

 

Tech & AI News

1.

Ant Group Forms AI Division Headed by Ex-Google Engineer

Ant Group, affiliated with Alibaba, has launched a new artificial intelligence unit, NextEvo, led by former Google engineer Xu Peng. This move comes at a time when Chinese tech firms are placing a growing emphasis on AI, particularly in large language models (LLMs) and natural language processing (NLP).

Read the full article about Ant’s investment in AI

 

2.

Elon Musk’s AI Venture Aims to Fundraise US$6 Billion

Elon Musk’s AI start-up, xAI, is negotiating to secure up to US$6 billion in funding at a proposed valuation of US$20 billion, challenging rivals like OpenAI. The company is engaging with family offices in Hong Kong and Middle Eastern sovereign wealth funds. Thanks to ChatGPT’s success, the AI sector has been a bright spot in an otherwise lacklustre climate for start-up investments.

Read the full article about xAI’s fund raising

 

3.

Huawei Collaborates with Dongfeng’s Voyah in EV

Huawei and Dongfeng Motor are collaborating to develop smart electric vehicles (EVs), marking Huawei’s further expansion into the EV market. This partnership with Dongfeng’s subsidiary Voyah aims to boost sales and strengthen its position in the competitive EV market. It will leverage Huawei’s “Huawei Inside” business model to provide full-stack technology solutions like automated driving software.

Read the full article about Huawei’s partnership with Dongfeng

 

4.

SoftBank Concludes Run as Alibaba’s Largest Shareholder

SoftBank Group Corp has significantly reduced its stake in Alibaba Group Holding, marking the end of a highly successful 23-year investment. The change in Alibaba’s controlling ownership has sparked optimism about the company’s potential resurgence.

Read the full article about Alibaba’s change in controlling ownership

 

5.

Leadership Changes and Job Cuts in Microsoft’s Gaming Division

Microsoft has announced job cuts in its video game division, affecting around 1,900 roles primarily at Activision Blizzard. This reduction represents nearly 9% of Microsoft’s 22,000-person video game division and is part of efforts to integrate teams and focus on sustainable growth. Support will be provided to those affected during this transition period.

These layoffs come amidst broader tech industry trends. The gaming industry, which saw a pandemic-driven surge, is now adjusting to changing consumer habits and economic challenges. Leadership changes at Blizzard and Xbox, including the departure of Blizzard’s president Mike Ybarra and chief design officer Allen Adham, further highlight the ongoing shifts within Microsoft’s gaming division.

Read the full article about Microsoft’s layoff