IFR Asia – June 30, 2018

Please send job moves to

[email protected]

DBS to launch China securities JV

DBS GROUP ûISûSETûTOûBECOMEûTHEûLATESTûFOREIGNû
BANKûTOûENTERûTHEûSECURITIESûINDUSTRYûINû
#HINAûFOLLOWINGûTHEûRELAXATIONûOFûRULESû
around ownership.
h$"3ûISûINûTALKSûWITHûPOTENTIALû#HINESEû
PARTNERSûANDûWITHûRELEVANTûGOVERNMENTûANDû
REGULATORYûBODIESûTOûESTABLISHûAûSECURITIESû
JOINTûVENTUREûINû#HINA vûAûSPOKESPERSONûFORû
THEû3INGAPOREANûBANKûSAID
$"3SûFORAYûCOMESûSHORTLYûAFTERû0û
-ORGANûANDû.OMURAûLODGEDûAPPLICATIONSûTOû
SETûUPûTHEIRûOWNûSECURITIESû6S
)Nû!PRIL ûTHEû#HINAû3ECURITIESû2EGULATORYû
#OMMISSIONûALLOWEDûFOREIGNûINVESTORSûTOû
OWNûAûMAJORITYûSTAKE ûFORûNOWûAûMAXIMUMû
OFû ûINûSECURITIESû*6Sû4HEûREGULATORû

has also pledged to gradually expand the

BUSINESSûSCOPEûOFû*6S

4HEûCHANGESûINTRODUCEDûBYû#HINASû

SECURITIESûREGULATORûHAVEûTRIGGEREDûAûNEWû

WAVEûOFûENTHUSIASMûAMONGûINTERNATIONALû

BANKSûWHICHûHAVEûLONGûBRISTLEDûOVERû

PREVIOUSûREGULATIONSûCAPPINGûTHEIRû

OWNERSHIPûATûûANDûLEAVINGûTHEIRû*6û

partners often in control of key licences.

/NLYû(3"#ûWHICHûINVESTEDûUNDERûTHEû

TERMSûOFûAûSPECIlCûDEALûBETWEENû#HINAûANDû

(ONGû+ONGûHASûAûCONTROLLINGûûSTAKEûINû

Aû#HINESEûSECURITIESû*6û5"3ûANDû'OLDMANû

3ACHSûENJOYûMANAGEMENTûCONTROLûOFûTHEIRû

*6SûWITHOUTûHOLDINGûAûMAJORITYûEQUITYûSTAKE

5"3ûWHICHûCURRENTLYûHOLDSûAûû

STAKEûINûITSû*6û5"3û3ECURITIESûWASûTHEû

lRSTûTOûAPPLYûTOûINCREASEûITSûSTAKEûTOû

û&OUNDERû3ECURITIESû#REDITû3UISSESû

*6ûPARTNERûHASûALSOûSAIDûITûWASûLIAISINGû

WITHûTHEûREGULATORûABOUTûCHANGESûTOûTHEû

SHAREHOLDINGSûOFûITSû*6û/THERûBANKSûAREû

expected to follow suit.

$ESPITEûMUCHûFANFAREû*6SûHAVEûSOûFARû

produced little income for their foreign

SPONSORSû&IGURESûRELEASEDûINû-AYûSHOWû

THATûTHEûCOMBINEDûNETûPROlTSûOFûTHEûSIXû

OPERATIONALû3INO

FOREIGNû*6SûFELLûBYûAROUNDû

AûTHIRDûINû

4HEûSIXû*6SûMADEûAûCOMBINEDûNETûPROlTû

OFû2MBMû53M ûWITHû#ITIû/RIENTû

3ECURITIESûRANKINGûlRSTûFORûTHEûSECONDûYEARû

INûAûROWûDESPITEûAûûDECLINEûINûNETûPROlTû

TOû2MBM

THOMAS BLOTT

JPM to grow

China IB staff by

40%–50%

JP MORGAN ûPLANSûTOûGROWûITSû#HINAû
INVESTMENTûBANKINGûHEADCOUNTûBYûnû
OVERûTHEûNEXTûTWOûTOûTHREEûYEARSûASûITû
GEARSûUPûTOûWINûMOREûBUSINESSûONCEûITû
RECEIVESûTHEûGO
AHEADûFORûAûMAJORITY
OWNEDû
SECURITIESûJOINTûVENTURE
4HEû53ûBANKûALSOûINTENDSûTOûREVAMPûITSû
COVERAGEûMODELûTOûFOCUSûONûWINNINGûMOREû
BUSINESSûFROMû#HINASûFAST
GROWINGûNEWû
economy companies.
)TûSAIDûITûWOULDûSPLITûITSûCOVERAGEû
ACROSSûSEVENûINDUSTRIESûlNANCIALû
SERVICESûANDûTECHNOLOGY ûHEALTHCAREûANDû
technology, enterprise and technology
SERVICES ûNEWûMOBILITY ûLIFESTYLEûANDû
smart manufacturing, digital access, and
infrastructure and commodities.

4HEûBANKûDIDûNOTûDISCLOSEûTHEûCURRENTû

HEADCOUNTûOFûITSû#HINAû)"ûTEAM

h#HINAûISûTHEûCOUNTRYûTHATûJUSTûHASû

leapfrogged, surpassing many things that

HAPPENEDûINûTHEû7ESTûFORûTHEûLASTûDECADEvû

SAIDû-URLIû-AIYAûCO

HEADûOFû)"ûFORû!SIAû

0ACIlCûATû*0û-ORGAN

h4HEûNEWûECONOMYûINû#HINAûISûNEWERû

THANûANDûVERYûDIFFERENTûFROMûMANYû

ECONOMIESûANYWHEREûINûTHEû7ESTv

The reorganisation comes only a few

WEEKSûAFTERûTHEû53ûBANKûAPPLIEDûTOûSETûUPû

AûMAJORITY

OWNEDûSECURITIESû*6ûINû#HINAû

BECOMINGûTHEûTHIRDûBANKûTOûTAKEûADVANTAGEû

of a recent loosening of rules on foreign

shareholdings.

)Nû!PRILûTHEû#HINAû3ECURITIESû2EGULATORYû

#OMMISSIONûAUTHORISEDûFOREIGNûINVESTORSûTOû

OWNûAûMAJORITYûSTAKEûFORûNOWûAûMAXIMUMû

OFûûINûSECURITIESû*6Sû4HEûREGULATORûALSOû

SAIDûITûWOULDûGRADUALLYûEXPANDûTHEûBUSINESSû

SCOPEûOFû*6S

*0û-ORGANûWASûTHEûTHIRDûGLOBALûBANKû

AFTERû5"3ûANDû.OMURAûTOûAPPLYûFORûMAJORITYû

ownership after the rules were introduced.

)TûPREVIOUSLYûHELDûAûûSTAKEûINûAû

SECURITIESû*6ûBEFOREûAGREEINGûTOûSELLûITSûSTAKEû

TOûITSûPARTNERû&IRSTû#APITALû3ECURITIESûINû

JP Morgan also appointed Mark Leung as

CHIEFûEXECUTIVEûOFlCERûFORû#HINAûLASTûMONTHû

as part of its renewed push in the country.

$AVIDû,IûSENIORûCOUNTRYûOFlCERûFORû#HINAûWASû

ALSOûMADEûVICEûCHAIRMANûOFûGLOBALûBANKING

2IVALûBANKSûHAVEûMADEûSIMILARûMOVESûINû

response to the regulatory changes. Last

MONTHû5"3ûMERGEDûITSû'REATERû#HINAû)"û

TEAMSûANDûAPPOINTEDû8UEWENû"IûHEADûOFû

CORPORATEûCLIENTûSOLUTIONSûATûTHEû*6ûANDû

!SIAûVICEûCHAIRMANû*OHNû,EEûCO

HEADSûOFûTHEû

COMBINEDûGROUP

#REDITû3UISSEû&OUNDERû3ECURITIESûTHEû

MAINLANDûSECURITIESû*6ûOFû#REDITû3UISSEû

HASûALSOûBEENûSTRENGTHENINGûITSû!

SHAREû

RESEARCHûCAPABILITIESû,ASTûMONTHûITSû

PARTNERû&OUNDERû3ECURITIESûSAIDûITûWASû

LIAISINGûWITHûTHEûREGULATORûABOUTûCHANGESûTOû

THEûSHAREHOLDINGûOFûTHEû*6

THOMAS BLOTT

IN BRIEF

Citigroup
First US bank with FMDB licence

CITIGROUP said last Friday it has received a
licence to provide futures margin deposit
services in China to investors under the
qualified foreign institutional investor and
RMB qualified foreign institutional investor
schemes.
QFII and RQFII investors who trade equity index
futures instruments on the China Financial
Futures Exchange are required to open a margin
deposit account with a licensed futures margin

deposit bank.

Citigroup said it was the first US bank to be

granted the licence from the exchange.

HSBC said in 2013 it was the first foreign bank to

receive an FMDB licence from CFFEX.

ANZ

Papua New Guinea assets sold

AUSTRALIA AND NEW ZEALAND BANKING GROUP is

selling its retail, commercial and small-to-

medium sized enterprise banking businesses

in Papua New Guinea to KINA BANK , to focus on

institutional and large corporate banking in the

region.

ANZ previously announced the sale of its retail

and wealth businesses in Singapore, Hong

Kong, China, Taiwan, Indonesia and Vietnam.

In a separate statement, Kina said it was

buying the ANZ PNG businesses for K24.2m

(US$7.19m).

AIIB

MoU with IDB

The ASIAN INFRASTRUCTURE INVESTMENT BANK has

signed a memorandum of understanding with

the ISLAMIC DEVELOPMENT BANK to co-finance