After two tenures, AsianInvestor's 2021 Standout CIO Jang Dong-hun looks back on the past six years at Korea's Poba with satisfaction.
Anthony Fasso, regional CEO at Axa IM in Hong Kong, declined to discuss the proposed deal because the parties donÆt want to appear to pressure the regulators, which must approve the new business. He says the parties hope to provide details in the fourth quarter.
Nor would he comment on the details of the ownership arrangement because it hasnÆt been approved by the government and ôitÆs differentö.
Shanghai Dragon is an investment company wholly-owned by the Shanghai municipal government.
Sources in Shanghai say SPDB has been vocal about its desire to cement the deal by the end of the year. For JVs involving banks, the process is a little more complicated: first they need the approval of the China Banking Regulatory Commission (CBRC) and then the nod from the China Securities Regulatory Commission (CSRC).
Although the authorities have encouraged the big, national commercial banks to set up funds JVs, they have not approved any deals involving regional or city banks. China Merchant Bank and Everbright Bank are currently seeking permission to take stakes in existing JVs run by securities affiliates (China Merchant Fund Management, partly-owned by ING Investment Management, and Everbright Prumerica, partly-owned by Prudential Financial of the US).
The government may prefer to see these deals worked out before it approves new fund companies with regional banks such as SPDB or Minsheng Bank, which is reportedly seeking to establish one with Royal Bank of Canada. Agricultural Bank of China remains the last of the big nationals yet to secure its funds JV; it is in talks with Credit Agricole Asset Management.
The CSRC is believed to prefer foreign firms buy stakes in existing fund JVs rather than start greenfield companies, as the scene is crowded; there are now 56 companies with operating fund management licenses. CITIC Securities acquired a 41% stake in China Asset Management, while DBS Asset Management recently bought a stake in Changsheng Fund Management, Nikko Asset Management is believed to be seeking a stake in Rongtong Fund Management, and Mellon Financial is reportedly interested in a stake in tiny Soochow Fund Management û the smallest existing manager in terms of assets under management, owned in part by Dongwu Securities.
But new JVs are still possible; earlier this spring, the government approved three new JVs for Banca Lombarda/Guodu Securities, Lord Abbett/Yangtze Securities, and First State Investments/Cinda Asset Management.
Brunei Investment Agency names head of real estate; Former Temasek CEO Ho Ching joins EQT Future's mission board; APG managing director for global real assets relocates to Hong Kong; Manulife Hong Kong appoints chief financial officer and chief product officer; Wayne Swan commences as Cbus chair; AXA IM appoints head of client group alts Asia; and more.
Census experts say China's population will start to decline at least five years earlier than expected - investors are being warned to keep a weather eye on inflation and structural shifts.
Family offices in Hong Kong want to do more impact investing, but the paucity of ESG talent and the lack of uniform reporting standards are real issues for them.
An impending series of interest rate increases and the deterioration in relations between Russia and the West over Ukraine have worried investors in recent weeks, hence the volatility in US equities in particular.