With the year of the snake approaching, competition between private banks in Asia is hotting up when it comes to who can distribute the most dazzling red packets to clients. These envelopes – known as laisee or hongbao – are traditionally given to family members and friends. However, they can also be highly sought-after collectors’ items and fetch a premium […]

The post Vote now: Who has the best red packets in Year of the Snake? appeared first on Asian Private Banker.

National People’s Congress (NPC) policies and a strong growth outlook are expected to boost the renminbi and Chinese stocks and bonds amid recent trade tensions, according to Credit Suisse (CS). The bank believes will that the trade tensions will not impact markets in any meaningful way, barring a full-blown trade war. “Despite potential risks, and near-term volatility, brought about by the […]

The post CS: NPC policies, strong growth outlook to boost Chinese assets appeared first on Asian Private Banker.

UBP, the Swiss pure play, shares its outlook on China following the 19th party congress and on post-election Japan, amid what it calls “a climatic week in Asia”. From a strategy perspective, UBP is overweight Japanese and EM equities, with a bias towards Asia. It is also overweight hard currency EM debt. China: Slower 2018 growth, USDCNH towards 6.80 in […]

The post UBP: On China National Congress and Japanese elections appeared first on Asian Private Banker.

As volatility has returned to markets, UBS Wealth Management says the probability of tail risks has increased from less than 10% to 10-20%, and as such the Swiss major says investors should remain invested while employing hedging strategies. After reaching record lows earlier this year, the VIX Index spiked last month to reach 16.4 amid escalating tensions between the US […]

The post UBS WM: With volatility back, clients should remain invested but hedging important appeared first on Asian Private Banker.

Private banks share their views about the near-term and long-term implications of the newly launched China-Hong Kong Bond Connect programme, which marks another milestone for the internationalisation of the renminbi. Investors can now invest in onshore Chinese cash bonds, while expansions of the programme could see it extend to bond repurchasing, bond forwards, interest rate swaps, and forward rate agreements. […]

The post Private banks react to Bond Connect launch appeared first on Asian Private Banker.

Amid moderating economic growth in the country, UBS Wealth Management shares its views on Chinese equities, bonds and the CNY. “We expect a cooling property market and moderating infrastructure investment to weigh on [China’s] economy in 2H17,” says UBS Wealth Management in its latest CIO report. China’s economic growth momentum slowed in April after peaking in March. Export growth eased […]

The post UBS WM on Chinese equities, bonds and forex appeared first on Asian Private Banker.

Although the likelihood that the USDCNY exchange rate will move above the 7 threshold in the next 12 months has declined significantly, Pictet Wealth Management expects the CNY’s recent rally to be temporary. “Given our positive take on the US dollar for the remainder of the year, the decline in the USD/CNY rate should be temporary, irrespective of fixing mechanisms,” […]

The post Pictet WM: Decline in USDCNY rate will be temporary appeared first on Asian Private Banker.

The CNY moved sharply higher against the USD over the past week following the Chinese central bank’s call to engage in counter-cyclical foreign exchange measures that would impede large uni-directional bets. While few details were given by the PBoC, UBP shares its views about the implications of such a policy, and why it is being implemented. “From a macro standpoint, […]

The post UBP: “What is counter-cyclical [CNY] policy?” appeared first on Asian Private Banker.

Deutsche Bank Wealth Management expects tighter monetary policy and more accommodative fiscal policy in China this year, after the country’s leadership signalled its economic objectives and policy focuses during the 2017 National People Congress (NPC). “A weaker yuan will loosen monetary conditions, which is likely to be countered with tighter controls on interest rates to preserve some stability,” the bank says […]

The post Deutsche Bank WM: Expect tighter monetary policy, accommodative fiscal policy in China appeared first on Asian Private Banker.

“Too many Americans have a myopic view of the yuan,” DBS says in its latest investment note, highlighting the trade-weighted resilience of the currency and the likelihood to “continue its 20-year march north”. According to the bank, this “myopic view” of the currency is due to the fact that its value is too commonly measured against the dollar. “This is […]

The post DBS: “The rise and rise [and rise]” of the trade-weighted yuan appeared first on Asian Private Banker.

Tighter CNH liquidity which triggered a spot rally could help stabilise near term FX expectations but Bank of Singapore believes continued renminbi weakening will persist for the medium-term and could be further pronounced should the US adopt a more protectionist tilt in trade policy. Near-term USDCNH consolidation expected According to the bank’s senior currency strategist, Sim Moh Siong, near-term USDCNH […]

The post Bank of Singapore: RMB weakening to resume appeared first on Asian Private Banker.

Amundi believes that the Chinese yuan, as one the most resilient currencies, will be a “currency stabiliser” in 2017, although the market is currently underestimating this fact. The firm also expects that the Chinese economy will stabilise in 2017, and that this is already partially priced in. “With US dollar gaining much strength by appreciating +3.1% after Trump’s election, the Chinese […]

The post Amundi: CNY to be a “currency stabilizer” in 2017 appeared first on Asian Private Banker.

Amundi Asset Management is advising investors to concentrate on equities with commodity and energy exposure in 2017, due to a worldwide acceleration in fiscal stimulus and expectations that oil prices will increase in a reflation environment. “The energy and materials sectors are expected to see a rebounding in earnings next year,” said Anthony Ho, chief investment officer, Asia ex-Japan equities, Amundi Hong Kong, […]

The post Amundi: energy and materials sectors will rebound in 2017 appeared first on Asian Private Banker.

Credit Suisse has advised investors to concentrate on stocks with infrastructure investment exposure in 2017, due to a global acceleration in fiscal stimulus and a need to refresh infrastructure – especially in the US. “It is expected that there is a big shortfall of about US$20 trillion in G20 infrastructure investment until 2030,” said John Woods, managing director, CIO Asia Pacific, […]

The post Credit Suisse: Infrastructure-exposed stocks attractive for 2017 appeared first on Asian Private Banker.

UBP has shared its views about what a Trump victory means for China, especially if the president-elect follows through with his protectionist rhetoric. An isolationist US will benefit China According to UBP, China will be “a major beneficiary” of a more isolationist US when compared to other possible policy directions. If Clinton had upheld Obama’s interventionist tendencies, there could have been a […]

The post UBP: What is the China impact of a Trump victory? appeared first on Asian Private Banker.

Improved confidence in the yuan – underpinned by the currency’s official inclusion in the IMF’s new SDR basket that comes into effect in October this year – paired with an ultra-low yield environment, should pique the interest of global bond investors, according to DBS. Attractive yields and low correlations to lure investors “[W]e expect increased allocation by global bond investors into the […]

The post DBS: SDR inclusion, attractive yields expected to draw in global bond investors appeared first on Asian Private Banker.

UBS believes that further strengthening of the dollar could send the yuan lower than current levels, but does not expect Chinese authorities to let the currency slip beyond 6.8 against the greenback, for fear of a political backlash from trading partners. “[We] expect to see two-way volatility, depending on how the USD moves against other major currencies,” says an investment note […]

The post UBS sets 2016’s USDCNY floor at 6.8 appeared first on Asian Private Banker.

The resurgence of cryptocurrency volumes, heavily backed by Chinese investors attempting to counter a weakening yuan, has re-opened possibilities for those with a higher risk tolerance to re-explore price differences between exchanges. “Without a tool to hedge against the weakening yuan, cryptocurrencies, which are nigh-impossible to regulate, will continue to see volumes [from Chinese investors],” said one source, who highlighted that […]

The post Cryptocurrency ‘arb’ returns in Asia amid 5-year low for yuan appeared first on Asian Private Banker.

Standard Chartered Bank (StanChart) expects authorities to continue referencing the yuan against a basket of currencies as China continues its drive to internationalise the currency, but believes certain prerequisites will be required to tame volatility. This mirrors the statement made by Zhou Xiaochuan, governor of the central People’s Bank of China during the current parliamentary National People’s Congress (NPC) annual […]

The post Short-term yuan volatility to stay appeared first on Asian Private Banker.

Data from the Bank for International Settlements (BIS) shows that “persistent private capital outflows from China” since June 2014 may have more to do with Chinese firms paying down dollar debt. BIS added in a report that its analysis “favours” such a view, rather than one of “investors selling mainland assets en masse.” It said too that the outflows may […]

The post China outflows less to do with capital flight appeared first on Asian Private Banker.

Standard Chartered’s (StanChart) global private banking unit posted a pre-tax profit of US$89 million in 2015, down from US$149 million in 2014, while assets under management (AUM) dipped 2%. Irregardless, the business is a key area that the UK lender’s CEO intends to grow by hiring more relationship managers and increasing cross-referrals from the corporate and retail units. The lower profit was […]

The post StanChart global private banking profit dips 40%, AUM down 2% appeared first on Asian Private Banker.

The People’s Bank of China (PBOC) is expected to keep the yuan stable in 2016, even as it is expected to depreciate further against the stronger US dollar due to China’s weak economy, notes Bank J. Safra Sarasin. As China’s economic stabilisation has not been present despite efforts from Beijing’s policy makers, the USDCNY pair is deemed to advance “slightly more […]

The post Renminbi risks apparent, says J. Safra Sarasin appeared first on Asian Private Banker.

Fears of sharp yuan devaluations loom but J. Safra Sarasin believes that China’s commitment to making its currency an international one is set to stabilise its exchange rate to the dollar. “It is quite clear what the People’s Bank of China (PBOC) wants,” says Ursina Kubli, economist and FX specialist at J. Safra Sarasin. “They have put a lot of […]

The post Stable trade-weighted USDCNY rate expected, says J. Safra Sarasin appeared first on Asian Private Banker.

“We think the risks attached to offshore Chinese equities are overdone and current valuations are attractive for initiating long positions,” notes UBS in a recent report, adding that it believes authorities have enough policy tools to keep yuan and economic risks in check. The bank is overweight on the MSCI China index, calling current valuations cheap, forecasting 7% earnings growth. […]

The post UBS overweight on MSCI China, offshore equity risks “overdone” appeared first on Asian Private Banker.

The sudden 7% plunge of the CSI 300 yesterday was herd mentality of retail investors at work, says Julius Baer, mixed with a badly-timed policy decision. Mark Matthews, head research Asia of Julius Baer, notes that the plunge yesterday led by “emotional retail investors” was caused by monetary policy desynchronisation, and exacerbated by the new circuit breaker rule imposed yesterday. […]

The post China equities market’s sudden drop a “currency issue” appeared first on Asian Private Banker.

Starting 4 January 2016, China’s central bank said the country will double the renminbi’s trading hours, as it prepares to join the International Monetary Fund’s (IMF) reserve currency basket in October. This, experts note, is the first step toward making yuan trading hours in line with currencies like the greenback, euro and yen. The People’s Bank of China said yesterday that yuan […]

The post China extends yuan trading hours, may revoke fund management registrations for banks appeared first on Asian Private Banker.

The 25 bps Federal Fund rate hike announced yesterday was as small in scale as the market has expected, but as UBS tells Asian Private Banker, a stronger dollar will have as much as a 5% effect on APAC currencies going forward in 2016. Philip Wyatt, chief regional Asia economist at UBS CIO Wealth Management, believes that the dollar should […]

The post APAC currencies to falter after rate hike, China and Singapore "overweight" appeared first on Asian Private Banker.

The 25 bps Federal Fund rate hike announced yesterday was as small in scale as the market has expected, but as UBS tells Asian Private Banker, a stronger dollar will have as much as a 5% effect on APAC currencies going forward in 2016. Philip Wyatt, chief regional Asia economist at UBS CIO Wealth Management, believes that the dollar should […]

The post APAC currencies to falter after rate hike, China and Singapore “overweight” appeared first on Asian Private Banker.

The long-expected announcement of the RMB joining the prestigious Special Drawing Rights (SDR) basket of the International Monetary Fund (IMF) came through yesterday, marking a big step forward for the currency’s on-going internationalisation progress. It should also in the near term lend stability to the yuan, experts note. The RMB is now the fifth reserve currency in the SDR basket, […]

The post RMB inclusion into SDR basket to herald further liberalisation appeared first on Asian Private Banker.

Asset manager Amundi believes that the yuan’s chances of being included in the International Monetary Fund’s prestigious Special Drawing Rights (SDR) basket is “very high”, with the body set to meet today. Amundi chief economist Asia ex-Japan Mo Ji estimates that the share of yuan in the SDR will be around 10%, with China’s 2 trillion export volume taken into […]

The post RMB inclusion into SDR "not enough to weaken" greenback appeared first on Asian Private Banker.

This follows bullish statements from the International Monetary Fund (IMF) and US Treasury, though Credit Suisse adds that more needs to be done by Chinese authorities before wealth managers will invest meaningfully into Chinese reserve-related assets after the yuan’s inclusion in the Special Drawing Rights (SDR) basket of currencies. The Swiss lender believes that it is now “very likely” that […]

The post Decision on CNY inclusion in SDR basket to be “very likely" made by end-2015 appeared first on Asian Private Banker.

The general manager of ICBC Singapore believes that recent yuan volatility does not slow down the currency’s ambition to be in the basket of SDR currencies, which may happen “as early as this year.” There was a surge of three-month offshore interbank rates in Hong Kong (CNH Hibor) to a historic high at 6.626 in August, but the rate has since […]

The post “No basis” for further RMB devaluation appeared first on Asian Private Banker.

With the yuan still trading 5-10% above fair value, according to UBS, it is worth considering the economic impact a further depreciation will have on both domestic China and its regional neighbours. The Swiss lender believes that a 10% depreciation of the yuan against the dollar could boost GDP growth by 0.5%, led by an export rally and the assumption […]

The post Contemplating a 10% CNY depreciation appeared first on Asian Private Banker.

Client interest in yuan-denominated structured products have dampened significantly, say structured product heads at private banks, since China’s central bank surprised global markets on Aug 11 by lowering the yuan’s reference rate and causing it to slide by 3% against the greenback. “There’s little appetite for yuan structured products particularly FX and interest rate differentials,” a global markets head at […]

The post Demand down sharply for RMB-denominated structured products appeared first on Asian Private Banker.

Despite recent turbulence in RMB rates, strong Taiwanese interest for Greater China funds with the currency share class should persist, says a global asset management research firm. Under Taiwan’s 2014 “Plan to Encourage Stronger Business Ties in Taiwan for Offshore Funds”, in lieu of restrictions on offshore funds investing in China, the overall regulatory landscape encourages not only bigger holdings in onshore resources and assets, but […]

The post Taiwan interest in RMB share class to persist despite volatility appeared first on Asian Private Banker.

The International Monetary Fund (IMF) have extended the current Special Drawing Rights (SDR) basket by nine months, pushing the date to September 2016 as the earliest that China’s yuan can be included. The executive board comprising 188 members voted to extend the composition of the fund, said a statement from the IMF. This is so that the IMF has more […]

The post Potential yuan move to join SDR delayed appeared first on Asian Private Banker.

Senior representatives from the London and Hong Kong offices of ten banks, namely Barclays, Bank of China, China Construction Bank, Citi, Deutsche Bank, HSBC, Industrial and Commercial Bank of China, J.P. Morgan, Royal Bank of Scotland, and Standard Chartered Bank, convened for the second Hong Kong-London Forum on the international Reminbi (RMB) market. The forum aims to jointly-promote offshore RMB business […]

The post Bankers convene in London to discuss international RMB market appeared first on Asian Private Banker.

Investors may well be delighted by the opportunity to gain greater exposure to mainland-listed securities, as Chinese authorities plan to nearly triple the existing quota for the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme, which allows qualified investors to channel offshore yuan funds into China’s equity and bond markets. During a conference running alongside the 18th National Congress of the […]

The post More RMB-denominated products could hit the shelf as Chinese regulators look to increase RQFII quota appeared first on Asian Private Banker.

  Singapore, Hong Kong and China Equities We are starting to see some movements from clients who have been entering the markets as sentiments start to pick up. Clients are especially interested in equities that are fundamentally sound in the region, in particular, names from Singapore, China and Hong Kong. – Sen Sui, head of Asia, markets & investment solutions, Credit […]

The post What’s selling at private banks? appeared first on Asian Private Banker.

“Technically, there’s nothing called private banking in Taiwan,” says a Hong Kong-based private banker who has extensive knowledge of the Greater China markets – his assertion coinciding with Taiwan Premier Sean Chen’s push for greater collaboration between the nation’s central bank and financial regulator, the Financial Supervisory Commission (FSC), to build a Taiwan-centric wealth management platform specifically for domestic clients. […]

The post Hong Kong private banker sceptical of Taiwan Premier’s wealth management ambitions appeared first on Asian Private Banker.

DBS Private Bank has introduced  a CNH-linked note that has been well-received by private banking clients. The bank has successfully raised over US$100 million from private banking clients on the particular structure – a a yield enhanced product fully hedged against market risk. Clients benefit from the interest rate differential between CNH and US Dollar or Hong Kong Dollar and […]

The post DBS Private Bank raises over US$100 million for in-house CNH note appeared first on Asian Private Banker.

Last week’s currency trade agreement signed between China and Taiwan will likely see an increase of RMB-flows from the Mainland to Taiwan that could eventually develop into “a Hong Kong-like scenario” where yuan-denominated products are in demand. “The private banking environment in Taiwan is very competitive, maybe even more so than Hong Kong,” says a senior Hong Kong-based private banker […]

The post China-Taiwan currency trade agreement broadens scope of on-shore yuan-denominated products in Taiwan appeared first on Asian Private Banker.

Whilst Taiwan may be a land of (forbidden) opportunities as far as most private bankers are concerned, private bankers continue to be sceptical about the recent currency clearing memorandum between the monetary authorities of Taiwan and mainland China. “While many believe this is an opportunity for Chinese high net-worth individuals to book assets in Taiwan, there are a lot of […]

The post Are Hong Kong private bankers getting closer to harvesting Taiwanese private banking assets ? appeared first on Asian Private Banker.

Australia and New Zealand Banking Group (ANZ) has opened a new branch in TianHe district, the commercial district of Guangzhou, as part of the bank’s continued growth in the Pearl River Delta. With this addition, ANZ China now has seven outlets in Beijing, Shanghai, Chongqing and Guangzhou, and the TianHe branch is part of ANZ’s plan to increase its network […]

The post ANZ opens another branch in China, plans to increase its network to 20 outlets subject to regulatory approval appeared first on Asian Private Banker.

China Guangfa Bank (CGB) will launch its private banking business later this year in hopes to capture the growing wealth throughout China. The Guangzhou-based bank looks to further segment clients in its existing wealth management business, primarily focusing on asset allocation for families with fee exemptions on 40 different services including healthcare, airport reception and overseas study. The threshold for […]

The post China Guangfa Bank to launch domestic private banking services appeared first on Asian Private Banker.