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Morning Coffee: J.P. Morgan says you should be working in Asian M&A

J.P. Morgan says you should be working in Asian M&A

Cross-border is hot

You want to work at the forefront of Chinese investment banking but you still want to work for a global firm. Your options are increasingly limited as mainland banks are outmuscling their foreign competitors in most parts of the industry in China this year.

In cross-border M&A, however, Western banks still have a big role to play advising Chinese firms expanding abroad. Asian companies, especially Chinese ones, increasingly say cross-border acquisitions will fuel their future growth, with 88% of them identifying themselves as net buyers, according to a new survey by J.P. Morgan.

“What we are witnessing is a secular trend. Chinese companies are seeking to expand globally and buying trophy assets, backed by strategic government support and low costs of capital,” says John Hall, co-head of Asia M&A at J.P. Morgan, in the report.

This is good news if you have both international and mainland banking experience. “Chinese bankers who’ve worked overseas are in particular demand for these kind of deals because they can help bridge the gap between the client and the acquisition target,” a headhunter in Hong Kong told us.

Asian firms account for a record 30% of all M&A deals seen so far this year, compared to a 10% to 15% share in the past, according to Dealogic data. Chinese companies have alone struck a record of $563 billion in year-to-date deals – almost half of the Asian total. J.P. Morgan itself is in fifth spot in announced Asian M&A this year – behind Goldman Sachs, HSBC, Bank of America Merrill Lynch, and Morgan Stanley.

Meanwhile:

ANZ’s “colourful” global head of markets resigns. (AFR)

Expats in Singapore face S$500k fees for sending kids to international schools. (Straits Times)

Demand for temporary staff soars in Singapore. (Straits Times)

OCBC claims Q3 lead in Singapore bancassurance market. (Business Times)

China banks turn blind eye to soaring overdue loans. (Reuters)

RBS scraps bonuses for retail staff. (Guardian)

Rich Asians turn to Aussie dollar as local currencies depreciate. (Today)

Private bankers must serve independent asset managers better. (Asian Investor)



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