A segment on China’s CCTV has noted how banks in Asia’s emerging markets are reporting slower growth with the familiar ritual in boom-bust financial cycles of shuffling executives, shedding employees and “belt-tightening.” The difference this time around is that for many banking employees in Asia and elsewhere, there will be no “revolving door” – just the one marked “Exit.” For example: Barclays PLC (NYSE: BCS) says it’ll cut 19,000 jobs over three years while HSBC Holdings plc (NYSE: HSBC) kicked off a big restructuring program in May 2011, selling over 50 businesses and cutting over 25,000 employees.
Jim Antos, the Head of Asia Ex-Japan Banking Sector Research, Mizuho Securities Asia, commented that:
“Sometimes it does not pay to be a global bank. Sometimes it pays to be a very strong local bank. Take, in Singapore for instance, a DBS [DBS Group Holdings Ltd (OTCMKTS: DBSDY)] or in Hong Kong a BOCHK [Bank of China (Hong Kong) Limited (OTCMKTS: BHKLY / BNKHF)], these are very strong local banks. And I don’t want to say that they are eating the lunch of the global banks, but they are certainly taking a nibble out of that lunch…. A bank like DBS, for instance or a bank in like Hong Kong, they are taping into the cross border business. Asian banks have advantages.”
The segment ended by noting that Hong Kong listed Chinese banks are coping with China’s slowing economy while banks in emerging markets have a slightly better footing than their peers in developed markets.
To read the whole article and watch the video segment, Banking growth slows in emerging Asian markets, go to the website of CCTV.
- Hong Kong Tycoons Start Moving Assets Offshore as Fears Rise Over New Extradition Law (Reuters)
- Hong Kong Security Law Sparks Race for Asia’s Next Financial Capital (Nikkei Asian Review)
- Asia at a Crossroads: Demographics, Economics & Investment (State Street)
- Bloomberg’s Misery Index’s Least Miserable Emerging Markets
- No Improvement in Asia Pacific Corporate Payments in 2015 (Coface)
- Buying Stocks in Asia: The Ultimate Guide (InvestAsian)
- Morningstar Hong Kong & Singapore Stock of the Week (Q1 2023)
- Two Systems, Zero Trust? Hong Kong’s Extradition Row Risks Business Exodus (Nikkei Asian Review)
- What Hong Kong Dollar Bond Exposure Means to Investors (The Asset)
- Korea & Taiwan Use Renminbi for Majority of Payments with China & Hong Kong (The Asset)
- The Spoils of Trade War: Asia’s Winners and Losers in US-China Clash (SCMP)
- Southeast Asia Set to Gain From Trade War Business Relocations (Nikkei Asian Review)
- Fund Manager Consensus: Hong Kong Needs China More Than Vice Versa (AsianInvestor)
- What the HSBC Earnings Report Tells Us About Emerging Markets (Forbes)
- Podcast: Our Man in Hong Kong (Robeco)