The recent turmoil in Chinese and Asian stock markets hasn’t been entirely bad news for financial professionals in Asia. As we reported earlier this week, an influx of mainland money into Hong Kong is keeping some wealth managers busy in the territory.
Market uncertainties are also partly behind Credit Suisse’s decision to almost double its private banking portfolio solutions team in Asia over the past year, Tan Wei-mei, director and head of portfolio solutions for Asia Pacific at the firm, told the South China Morning Post, without providing headcount numbers.
More product solutions staff are needed because of a 200% year-on-year increase in ‘mandates’ – funds clients entrust banks to invest at their own discretion – at the firm in Asia in the past year. The average annual growth rate for these funds was just 10% to 20% in the past five years. Slowing economic growth and slumping stock markets mean wealthy clients have become more willing to let Credit Suisse experts manage their money via the bank’s products.
“As equity markets became more volatile this year, we have seen more high-net-worth clients opting for mandate solutions,” Tan told the newspaper. “With the ageing demographics in Asia, we also see more clients who have retired and want to spend more time on the golf course rather than trading in the financial markets.”
Rising demand for mandated services plays into the hands of private bankers at large firms such as UBS who have much wider product ranges than their boutique competitors. And it adds to the difficulties that smaller private banks are already having attracting the best talent.
Macquarie names new co-heads of Asia ECM. (Finance Asia)
Lloyd Blankfein would not invest in China. (Wall Street Journal)
Citibank launches service for emerging affluent. (Business Times)
Singapore’s dreams of becoming an Islamic hub are fading. (Bloomberg)
Asia can handle slowing growth from China, says DBS boss. (Business Times)
Weak export data pushes Singapore closer to technical recession, according to DBS. (Straits Times)