Darcy Lai, regional head of global
banking for Greater China and North
!SIAûATû3TANDARDû#HARTERED ûECHOEDûTHESEû
thoughts.
(EûSAIDûTHATûlNANCINGûFORû"ELTûANDû
2OADûPROJECTSûhWILLûBEûMOSTLYûPROVIDEDûBYû
MULTILATERALûANDû#HINASûPOLICYûBANKSûINûTHEû
EARLYûSTAGEv ûBUTûTHATûINTERNATIONALûBANKSû
STANDûTOûBENElTûFROMûTHEûRANGEûOFûANCILLARYû
BUSINESSESûTHEYûPROVIDE ûSUCHûASûCASHû
MANAGEMENTûANDûFOREIGNûEXCHANGE
RENMINBI FINANCING
4HEûPUSHûFROMûINTERNATIONALûBANKSûHINGESû
PARTLYûONûTHEûEXEPCTATIONûTHATû8ISûEFFORTSûTOû
SPEARHEADûTHEû"ELTûANDû2OADûINITIATIVEûWILLû
accelerate the internationalisation of the
RENMINBI
4HEûUSEûOFûTHEûRENMINBIûASûANû
international currency has been
DIMINISHINGûASûAûRESULTûOFûTHEûû
DEVALUATIONûANDûRECENTûCURBSûONûCAPITALû
OUTmOWS
!CCORDINGûTOûRESEARCHûPUBLISHEDûBYû
-OODYSûLASTûMONTH ûTHEûRENMINBIûHASûBEENû
USEDûASûTHEûSETTLEMENTûCURRENCYûINûONLYûû
of Belt and Road-related transactions since
*AMESû#AMERON ûCO
HEADûOFûINFRASTRUCTUREû
ANDûREALûESTATEûFORû(3"#ûINû!0!# ûSAIDûTHATû
HEûEXPECTSûTHISûTOûPICKûUP
h7ITHûGREATERûTRADEûmOWSûTOûANDûFROMû
China as a result of BRI, we will see
a greater use and acceleration of the
INTERNATIONALISATIONûOFûTHEû2-" vûHEûSAID
"ANKSûLIKEû#ITIGROUP û(3"#ûANDû3TANDARDû
#HARTEREDûSTANDûTOûBENElTûCOMPAREDûWITHû
THEIRûINTERNATIONALûPEERSûDUEûTOûTHEIRû
PRESENCEûINûAûNUMBERûOFûTHEûMARKETSûALONGû
the Belt and Road.
Conversely, other banks are relying on
PARTNERSHIPSûWITHû#HINESEûLENDERSû)Nû-AY û
$EUTSCHEû"ANKûSIGNEDûAûMEMORANDUMûOFû
UNDERSTANDINGûWITHû#HINAû$EVELOPMENTû
"ANKûTOûlNANCEûINFRASTRUCTUREûPROJECTSû
WORTHûUPûTOû53BN
Most analysts reckon that the Chinese
banks will continue to aggressively
SUPPORTû"ELTûANDû2OADûPROJECTS û
POTENTIALLYûLIMITINGûTHEûOPPORTUNITIESûFORû
international banks.
“The share of overseas loans or assets in
Chinese banks’ total loans or assets is only
SINGLEûDIGITS vûSAIDû,ILLIANû,I ûVICEûPRESIDENTû
ATû-OODYSûh4HEREûISûAûLOTûOFûSCOPEûFORûTHISû
TOûINCREASEûESPECIALLYûGIVENûTHEûIMPORTANCEû
OFû"2)ûTOû#HINASûNATIONALûSTRATEGYv
THOMAS BLOTTCOMPANYû#HINAû&ORESTRYû(OLDINGS
5"3ûSAIDûLASTû/CTOBERûWHENûITûDISCLOSEDû
that it was being investigated over its role
ASûSPONSORûOFûhCERTAINû)0/SvûTHATûTHEREû
MIGHTûBEûlNANCIALûRAMIlCATIONSûANDû
THEûPOTENTIALûSUSPENSIONûOFûITSûCORPORATEû
advisory licence.
3TAN#HARTûNOûLONGERûHASûAûLICENCEûTOû
SPONSORû)0/SûINû(ONGû+ONG
4RADINGûINû#HINAû&ORESTRYûHASûBEENû
SUSPENDEDûSINCEû*ANUARYûûAFTERûITSû
AUDITORûREPORTEDûACCOUNTINGûIRREGULARITIESû
4HEûCOMPANYûHASûSINCEûBEENûPLACEDûINTOû
LIQUIDATIONûANDûWASûDELISTEDûINû&EBRUARY
3&#ûCHIEFûEXECUTIVEû!SHLEYû!LDERûSAIDûINû
AûWELL
PUBLICISEDûSPEECHûEARLIERûTHISûYEARû
that the securities regulator was “no longer
ACTINGûBEHINDûTHEûSCENESvûANDûWOULDûUSEû
ITSûPOWERSûUNDERûTHEû3ECURITIESûANDû&UTURESû
/RDINANCEûTOûOBJECTûTOûCERTAINû)0/SûONûLEGALû
grounds.
%ARLIERûTHISûYEAR û(ONGû+ONGû%XCHANGESû
ANDû#LEARINGûREJECTEDûTHEûLISTINGûAPPLICATIONû
OFû!-4$û3TRATEGICû#APITAL ûAûSUBSIDIARYûOFû
BOUTIQUEûINVESTMENTûBANKû!-4$û'ROUPû
4HEû3&#ûDIDûNOTûCONlRMûWHETHERûORûNOTû
ITûHADûAûSAYûINûTHEûMATTER ûBUTûTHEûMOVEû
WASûWIDELYûINTERPRETEDûASûAûSIGNûOFûTHEû
regulator’s strengthening hand.
,ASTûMONTH û!NDREAû/RCEL ûPRESIDENTû
OFûGLOBALûINVESTMENTûBANKINGûATû5"3 û
SAIDûTHEûBANKûWASûNOûLONGERûPITCHINGû
FORûSPONSORSHIPûROLESûINûLIGHTûOFûGREATERû
regulatory scrutiny.
5"3ûWASûJOINTûSPONSORûANDûJOINTûGLOBALû
COORDINATORûALONGûWITHû#REDITû3UISSE û
CMB International and JP Morgan on the
(+BNû53BN û)0/ûOFû:HONG!Nû
/NLINEû0#û)NSURANCE ûWHICHûPRICEDûLASTû
MONTH
/RCELûADDEDûTHATûOTHERûBANKSûWOULDû
RECONSIDERûSPONSORINGûDEALSûUNTILûTHEûRULESû
WEREûCLARIlED ûALTHOUGHûOTHERûBANKERSû)&2û
SPOKEûWITHûREJECTEDûTHAT
“The lion’s share of the fees are at the
SPONSORSHIPûANDûJOINTûCOORDINATORûLEVELSû
ANDûITSûDIFlCULTûTOûSEPARATEûTHEûTWO vûSAIDû
ONEû%#-ûBANKER
“Banks are certainly taking their
RESPONSIBILITIESûASûSPONSORSûMOREûSERIOUSLYû
ANDûTHINKINGûTWICEûABOUTûTHEûCOMPANIESû
THEYûTAKEûON ûBUTû)ûDONTûTHINKûTHISûWILLûPUTû
ANûENDûTOûSPONSORSHIPv
$AVIDû4AWIL ûPRESIDENTûATûHEDGEûFUNDû
-AGLANû#APITAL ûAGREEDûh!LTHOUGHûSOMEû
BANKSûMAYûCHOOSEûTOûTAKEûTHEûEASYûWAYûOUTû
ANDûAVOIDûSPONSORSHIP û)ûTHINKûTHATûMOST û
banks ... will take the charge seriously and
THEYûWILLûSEEKûTOûDIFFERENTIATEûTHEMSELVESû
INûTHEûMARKETPLACEûBYûCONTINUINGûTOûDOûTHISû
TYPEûOFûWORK vûHEûSAID
THOMAS BLOTTPlease send job moves to
[email protected]ANZ hires one,
promotes another
in Asia DCM
AUSTRALIA AND NEW ZEALAND BANKING GROUP has
HIREDûONEûSENIORûDEBTûCAPITALûMARKETSûBANKERû
ANDûPROMOTEDûANOTHERûASûITûLOOKSûTOûGROWûITSû
CAPABILITIESûINûCREDIT
4HEû!USTRALIANûLENDERûHASûPROMOTEDûKJ Kim
TOûHEADûOFû!SIAû$#-û+IM ûWHOûJOINEDû!.:û
INûûANDûWASûPREVIOUSLYûHEADûOFû$#-ûFORû
THEûlNANCIALûINSTITUTIONSûGROUPûINû!SIA ûWILLû
CONTINUEûTOûREPORTûTOû*IMMYû#HOIûANDû0AULû
7HITE ûCO
HEADSûOFûCAPITALûMARKETS
+IM ûPARTûOFûAûGROUPûOFûSIXû$#-ûBANKERSû
THATûDEFECTEDûFROMû"ANKûOFû!MERICAû-ERRILLû
,YNCHûlVEûYEARSûAGOûTOûJOINû!.: ûISûTHEûlRSTû
Asia DCM head since Choi.
#HOIûCONTINUEDûTOûHOLDûTHEûPOSITIONûOFû!SIAû
head of DCM after he was elevated to the role
OFûCAPITALûMARKETSûCO
HEADûLASTûYEARûDURINGû
AûRESTRUCTURING ûWHICHûSAWû!.:ûBRINGûITSû
ORIGINATIONûANDûSYNDICATIONûTEAMSûTOGETHER
!.:ûHASûHIREDûBaoshu Huang as head of
North Asia DCM. He was head of DCM in
!SIAûATû##"û)NTERNATIONALûPRIORûTOûJOININGû
!.:ûANDûHADûPREVIOUSLYûBEENûWITHû3TANDARDû
#HARTERED û'OLDMANû3ACHSûANDû$EUTSCHEû
Bank.
)Nû-AY û!.:ûPROMOTEDû"HAVIKû0ANDYAûTOû
HEADûOFû3OUTHû!SIAûANDû3OUTH
%ASTû!SIAû$#-û
He has been with the Australian bank for
SEVENûYEARSûANDûRELOCATEDûTOû3INGAPOREûTOû
TAKEûUPûTHEûNEWûROLE
"OTHû(UANGûANDû0ANDYAûREPORTûTOû+IM
The changes do not affect Alan Roch, head
of Asia debt syndicate.
&EESûFROMû'ûBONDûISSUESûINû!SIAû0ACIlC û
EX
*APANûALMOSTûDOUBLEDûFORûTHEûlRSTûTHREEû
QUARTERS ûRISINGûTOû53BNûFROMû53Mû
a year earlier.
)NûSPITEûOFûCONCERNSûAMONGûBANKERSûTHATû
AûSLOWDOWNûINûREGULATORYûAPPROVALSûFROMû
#HINAûMAYûBLUNTûDEALûmOWS û!.:Sû#HOIûHASû
TOLDû)&2ûTHATûOPPORTUNITIESûREMAINûDUEûTOûTHEû
hFAVOURABLEûINTEREST
RATEûENVIRONMENTv
He said dollar bond issues out of Australia
were continuing to grow as Asian investors
DIVERSIlEDûAWAYûFROMûREGIONALûCREDITS
h7EûSEEûTHISûASûAûGROWINGûTHEMEûANDû
!SIAûBECOMINGûAûSTRONGûALTERNATIVEûTOûTHEû
TRADITIONALûOFFSHOREûMARKETSûAVAILABLEûTOû
CORPORATEû!USTRALIA vûHEûSAID
!.:ûRANKEDûSTûFORûFEESûFROMû'ûBONDû
ISSUESûINû!0!# ûEX
*APANûDURINGûTHEûlRSTûNINEû
MONTHSûOFûTHEûYEAR ûWITHûAûûWALLETûSHARE û
DOWNûFOURûPLACESûFROMûTHEûSAMEûPERIODûLASTû
YEAR ûACCORDINGûTOû4HOMSONû2EUTERSûDATA
THOMAS BLOTT