Impact investing on the rise: BNP survey | FinanceAsia

Impact investing is gaining in popularity across the globe, but a lack of harmonised environmental, social and governance (ESG) data, regulations and standards pose barriers to its development in Asia, a BNP Paribas survey suggested.

“Asia Pacific (Apac) is behind Europe, which has already integrated broader ESG topics such as inequalities and biodiversity. But it is ahead of North America which is highly fragmented over this topic,” Jules Bottlaender, Apac head of sustainable finance at BNP Paribas, told FinanceAsia.

So far 41% of global investors recognise a net zero commitment as their priority, while in Apac, 43% have set a due date to achieve net zero targets, according to the survey.

The global survey, titled Institutional investors’ progress on the path to sustainability, looked into how institutional investors across the globe are integrating their ESG commitments into implementation.

It gathered data from 420 global hedge funds, private capital firms, asset owners and asset managers between April and July 2023. Among them, 120 (28.6%) are from Asia Pacific (Apac) markets including China, Hong Kong, Singapore and Australia.

Impact investing

Impact investing, a strategy investing in companies, organisations and funds generating social and environmental benefits, in addition to financial returns, is a global trend that in the next few years, is set to overtake ESG integration as the most popular ESG strategy, the report revealed.

Globally, ESG integration dominates 70% of investors’ ESG investment strategies, but the proportion is expected to drop by 18% to 52% over the next two years. In contrast, 54% of respondents reported a plan to incorporate impact investing as their primary strategy by that time.

European investors have the greatest momentum in adopting impact investing at present, with 52% employing impact investing. While in the four markets in Apac, the proportion stood at 38%.

Negative screening took a lead as a major strategy of 62% investors surveyed in Apac. In the next two years, the figure is set to shrink to 47%, overtaken by 58% estimating to commit to impact investing.

“Impact investing is a rather new concept for most people [in Asia]. It is driven by the need to have a clear and tangible positive impact,” Bottlaender said.

An analysis from Invesco in March 2023 pointed out that while impact assessment is key to a measurable outcome of such investments, clear and consistent frameworks are required to avoid greenwashing acts.

“There is no singular standard for impact assessment,” the article noted. On the regulatory side, specific labelling or disclosure requirements dedicated to impact investing have yet to come in Asia.

Private markets, including private debt, private equity and real assets, will take up more sizeable share of impact investing asset under management (AUM), it added.

Bottlaender echoed this view, saying that current regulatory pressure in Asia “is almost all about climate”. As a result, Asian investors’ ESG commitments are mostly around climate issues such as including net zero pledges and coal divestment, before stronger taxonomies and broader ESG regulations which are set to be finalised over the next few years.

Data shortage

A lack of ESG data is one of the greatest barriers to investors’ commitments, as respondents to the survey reported challenges from inconsistent and incomplete data. The concern is shared by 73% of respondents across Apac, slightly higher than a global average of 71%.

Bottlaender explained that although mandatory reporting of climate data is adopted in certain regulations, a majority of ESG data is submitted voluntarily.

This leads to a fragmentation and inconsistency of sources based on the various reporting standards they adhere to. Moreover, the absence of third-party verification results weighs on the accuracy and reliability of the data provided, he continued.

He shared that investors are either engaging directly with companies to encourage standardised reporting practices, or relying on data providers, or leveraging technology to carry out quality control to address the lack of ESG data.

But “significant gaps persist, especially concerning private companies and aspects like scope 3 emissions.”

“As a result, investors must be extremely cautious when advancing any ESG claim or commitment,” he warned.

¬ Haymarket Media Limited. All rights reserved.

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Nobel Sustainability Trust launches digital currency initiative

MUNICH, Nov. 9, 2023 —A meeting sponsored by the Nobel Sustainability Trust today launched the Central Bank Digital Currency Collaboration Organization (CBDCCO), under the chairmanship of Peter Nobel, president of the Trust. The organization’s goal is to nurture sustainable economic growth and stability by encouraging the adoption of digital currencies.

The inauguration ceremony represents the culmination of years of activity on the part of a pioneering global Central Bank Digital Currency research organization, the International Telecommunications Union Focus group headed by Dr. David Wen. Dr. Wen is the Director-General of the new CBDCCO.

The new initiative draws on experts from leading regulatory and financial organizations, including the European Security and Market Authority, the Federal Reserve, the Official Monetary and Financial Institutions Forum, China Merchant Bank, CBDC solution provider eCurrency, and technology experts from CBDC solution providers like eCurrency, and Modern Sustainable Solutions (MOSS), a leading carbon offset provider.

Dr. Bruno Wu, the President of CBDCCO and Director-General of the World Sustainability Standard Organization (WSSO), outlined a seven-part program in his keynote speech to the founding conference. Dr. Wu was the honoree of last year’s Nobel Sustainability Trust award.

Under the theme “Star Bridge,” the CBDCCO program will work with central banks to develop digital technology, assist in the integration of digital financial infrastructure, promote accounting standards that corporate sustainability data in accounting standards, apply CBDC technology to Real World Asset Management, develop digital infrastructure for improved global carbon asset management, foster technical standards for a wide range of CBDC solutions, and provide innovative technology for regulatory oversight of sustainability products.

Dr. Wu is a shareholder of the parent company of Asia Times.

Peter Nobel, representing the Nobel Sustainability Trust, stressed the importance of embedding sustainability into the core of future economies. They stated, “Digital currencies present a unique opportunity to rebuild and reshape our financial systems with sustainability at their core.” The Nobel Sustainability Trust, long active in the sustainability space, will provide expertise and support for the new organization.

The CBDCCO and the Nobel Sustainability Trust extended an invitation to other organizations and governments to join their endeavors in forging a sustainable and inclusive financial future.

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Malaysia’s net zero transition: expediting ESG | FinanceAsia

The Joint Committee on Climate Change ( JC3 ) of Malaysia met last month to discuss working together to improve the financial sector’s ability to develop climate resilience. & nbsp,

According to a spokesperson for Bank Negara Malaysia( BNM ),” sustainable assets are gaining momentum in Malaysia with key investment styles built around the need for accelerating sectoral transition and climate resilience, such as energy transition, circular economy, food security, and freedom change.”

The JC3 board was established in September 2019 to ensure a cogent approach to ESG initiatives, with its founding serving as” great testimony” to how proponents of Malaysia’s capital markets intend to work closely to improve sustainability practices in Malaysia, according to Angelia Chin – Sharpe, CEO of BNP Paribas Asset Management, which operates in Southeast Asia.

Its members include representatives of the market’s central bank, BNM, capital markets regulator, Securities Commission Malaysia ( SC ), stock exchange, Bursa Malaysia, and 21 other financial industry players, including Chin-Shawni at BNP AM, insurance companies Allianz, Swiss Re and Zurich, as well as banks like RHB Islamic and CIMB.

The committee outlined five initiatives at the meeting that” emphasise the crucial part of the banking sector in enabling a lasting plan” with the goal of expediting the economy’s low-carbon practices. A pilot project to switch industrial parks and their operational infrastructure to low-carbon practices was one of these, along with three data-related initiatives and a RM1 billion($ 0.210 million ) guarantee to provide funding to smaller market players to support their ESG agendas. & nbsp,

The BNM spokesperson stated to FA that one of the goals of” Ekonomi Madani” is to encourage Malaysia’s green growth in the direction of climate resilience. This goal aims to put Malaysia on a strong development path by realizing and addressing key national issues.

There are numerous opportunities for industry players, including international investors, to achieve the National Energy Transition Roadmap ( NETR ) targets set for 2050, she said.

Energy efficiency( EE ), renewable energy( RE ), hydrogen, bioenergy, and green mobility and carbon capture, utilisation and storage( CCUS ) are the six energy transition levers that Malaysia’s NETR identifies as its ten flagship projects. These are anticipated to catalyze and quicken the market’s energy transition, reduce greenhouse gas ( GHG ) emissions by at least 10 metric tons of carbon dioxide equivalent ( MtCO2eq ) annually, create 23, 000 high-impact job opportunities, and improve corporate ecosystem growth opportunities with benefits to society.

According to the BNM touch, their powerful supply necessitates investments in infrastructure, engineering, and human capital totaling between RM1.2 trillion and Rs1.3 trillion up to 2050. In addition to & nbsp,

While Malaysia’s administrative society is capable of reviewing such an option and is aware of the significance of incorporating ESG into purchase technique,” there is still a need to teach” smaller scale investors on the opportunities and risks associated with sustainability strategies, according to Chin-Sharpe, BNP Paribas AM.

Having said that, she added,” Most banks in Malaysia are committed to playing a more active role to align and help their clients understand the[ relevant ] Malaysian taxonomies.”

Purchase and regulation

The five new initiatives have been included in the government’s budget for 2024 and” complement other policies such as the NETR, the New Industrial Master Plan ( NIMP ) 2030 and the Mid-Term Review of the 12th Malaysia Plan ( MTR – 12MP ,” according to YB Nik Nazmi Nk Ahmad, minister of Natural Resources, Environment, and Climate Change.

All governing events, including JC3 users, Malaysia’s Corporate Guarantee Corporation, and pertinent ministries, are committed to putting the tasks into action, the BNM representative confirmed with FA.

The regulatory environment in Malaysia keeps up with the country’s continued energy transition and the funding needed to make it happen. To obtain conservation and environment goals, the money market should be prepared to help finance raising and investments. Since 2011, when Sustainable and Responsible Investment ( SRI ) has been included as a crucial growth strategy in the Capital Market Masterplan CMP2, the SC has paved the way for sustainability, according to Dato ‘ Seri Dr. Awang Adek Hussin, its chairman.

A Climate Chance and Principle-based Taxonomy was published by BNM in 2021. In December 2022, SC unveiled a Principles-Based SRI Taxony for the Malaysian Capital Market. This year, in June of this year. SC also established the International Sustainability Standards Board’s ( ISSB ). & nbsp,

Meanwhile, the BNM spokesperson emphasized last month’s Energy Efficiency and Conservation legislation as having the potential to significantly lower energy use by 2050 — by 2, 017 million gigajoules, or RM97 billion in savings— and to” create new jobs in energy management and auditing ,” she said.

According to Adrian Wong, mind of jobs and director at the Singapore-based law firm Prolegis, which has a formal legal ally with Herbert Smith Freehills( HSF ),” investment has increased in Malaysia in part because the regulatory environment has done more to promote appetite in renewables.”

Large-scale solar auctions in Malaysia’s peninsular and projects along the Sarawak Corridor of Renewable Energy ( Score) are two of the renewable infrastructure projects his team is helping clients with.

The transport industry is anticipated to play a significant role in the demand for renewable energy, with electric vehicle ( EV ) usage expected to reach 80 % of the car market in 2050.

However, he informed FA that the greatest possibility is present in projects involving solar, water, and biofuel. In 2040, it is anticipated that all three sources will increase and account for roughly 17 % of Malaysia’s total energy mix.

a files travel

Data and the potential of emerging technologies to support Malaysia’s conservation plan are the three activities that were announced at the event.

The first builds on the accomplishments of JC3’s Greening Value Chain ( GVC ) pilot program, which began in 2022 and has so far assisted 80 small and medium enterprises( SMEs ) in tracking and reporting greenhouse gas ( GHG ) emissions across the length of their supply chains. In order to provide public listed companies( PLCs ) capacity-building support, reporting tools, and additional financing facilities, which the BNM spokesperson said could be accessed” at competitive rates via the Low Carbon Transition Facility( LCTF ), the updated plan connects Bursa Malaysia’s sustainability data platform with the GVC program.

Access to an” ESG jump-start portal,” through which Malay businesses can obtain useful information on ESG-related capacity-building programs, certification, as well as financial and opportunity methods, and the introduction of a Green AgriTech program to promote the adoption of green technology and sustainable agriculture techniques among local producers, are additional data related initiatives.

According to the BNM director,” Green AgriTech offers substantial potential for Malaysia’s agricultural field by opening up new possibilities and addressing vital difficulties.”

Wong concurred that emerging technology has the potential to modernize and alter Malaysia’s ESG strategy, particularly in the agricultural industry. From ensuring a sustainable supply of food sources to raising general health and environmental criteria, he mentioned the potential for positive effects.

To ensure that farmers may conduct their financial transactions online, he suggested the Malaysia Digital Economy Corporation’s project, which linked small farmers to online marketplaces offering bright warehouse facilities, supply, and farming solutions.

Through a thorough approach to alternative solutions, this catalytic pilot program encourages farmers to use technologies and follow greener and ecological practices. Participating farmers can obtain grants and LCTF to purchase natural systems, the BNM spokesperson added.

” Technology use may improve produce stability and quality while also assisting in the resolution of food safety issues.”

maintaining speed

The efforts to enlist input from all parts of Malaysia’s market, both the public sector and the private sector, is at the core of the country as it transitions. The BNM spokesperson informed FA that” efforts to level public-private partnerships are even continuing, with fresh initiatives.”

She stated that the GVC program is an excellent illustration of a cutting-edge blended financing initiative in Malaysia that supports the country’s move toward enlightenment.

BNM continues to support private institutions’ participation in the government’s loan offerings, the call emphasized,” BNM also supports such attempts by facilitating the release of Government of Malaysia Sustainable Sukuk for registration by both domestic and foreign investors.”

According to SC chairman Hussin at the conference, the SRI-linked Sukuk Framework was introduced last year, giving the Indonesian capital market access to a full range of frameworks to assist businesses in financing transitional projects as well as alternative, social, and sustainability initiatives.

Fitch recently released an ESG document that showed a steadfast global appetite for the sukuk. The data shows that by the end of 3Q23, ESG sukuk issuance had increased by 66 % year over year( YoY ) to reach$ 33.3 billion worldwide.

Due to built-in sharia filters, there is a cross between Islamic funding and ESG principles, according to the ratings agent’s research. & nbsp,

Over the moderate name,” Fitch Ratings anticipates more rise.” According to the review, the company’s growth is largely driven by governments’ sustainability initiatives and issuers’ funding diversification goals toward both sharia and ESG-sensitive investors.

” ESG sukuk could receive an awareness and issuance boost ,” said Bashar Al-Natoor, Fitch’s global head of Islamic Finance, with the United Arab Emirates( UAE) hosting the Conference of Parties( COP ) 28 this year.

It is motivating to see the Indonesian government adopting a” full of state” approach to addressing the impact of climate change on economic conservation, Hussin said at the conference’s conclusion. The nation’s interests and sustainable development methods are outlined in roadmaps and masterplans that have been made available by the relevant ministries.

I want to say it again:” Our planet is facing an unprecedented problem, one that necessitates immediate and coordinated effort from all countries, sectors, and individuals.”

 

Haymarket Media Limited All right are held back.

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How to read China’s US Treasury sell-off

In the home stretch of a rocky 2023, China and Warren Buffett are warning the global economy that the year ahead could be even more precarious.

Not directly or in tandem, of course. But the financial decisions being made in Omaha, Nebraska and Beijing don’t seem very promising for the 12-14 months ahead.

Buffett’s Berkshire Hathaway conglomerate, for example, is raising its cash position in headline-generating ways. Its cash pile is now a record-breaking US$157.2 billion amid rising global interest rates and a lack of solid investment options.

Xi Jinping’s China is also going as liquid as it can — and rapidly — without panicking investors everywhere. As of the end of August, China’s stockpile of US Treasury securities dropped to the lowest level in at least 14 years.

What’s more, Beijing’s exposure to US government debt has fallen about 40% in just the last decade. Xi’s Communist Party has long since passed the dubious honor of Washington’s top banker to Japan. But at No 2, with $805.4 billion of US Treasuries, China’s selling activity is raising eyebrows in government offices and trading pits around the globe.

Though some might claim foul geopolitical play, there could be perfectly rational economic reasons for Xi’s government to offload US debt. As economist Torsten Slok at Apollo Global Management sees it, “growth in China is slowing for cyclical and structural reasons, and Chinese exports to the US are lower. As a result, China has fewer dollars to recycle into Treasuries.”

Brad Setser, a former US Treasury Department economist, says the suspicion that Xi is exacting revenge on the US “sort of makes sense. China does worry about the weaponization of the dollar and the reach of US financial sanctions. And why would a rising power like China want to fund the Treasury of a country that China views as standing in the way of the realization of the China dream ­– at least in the Pacific?”

Yet, Setser says, “that is not what I believe is actually happening.” The bulk of China’s post-2012 efforts to diversify its reserves “have come not from shifting reserves out of the dollar, but rather by using what could have been reserves to support the Belt and Road and the outward expansion of Chinese firms.

Those non-reserve foreign assets, strangely enough, seem to be mostly in dollars; almost all the documented Belt and Road project loans, for example, have been in dollars.”

A Belt and Road bridge project in Croatia. Image: Twitter

Whatever the motivation, though, the global financial system is right to worry about the wider fallout from China selling dollars, including surging US yields. US bond rates recently hit a 17-year high and further spikes are sure to hit asset markets around the globe.

Slok notes that rising US yields are “inconsistent” with the view that stock markets are undervalued. “In short, something has to give,” Slok notes. “Either stocks have to go down to be consistent with the current level of interest rates. Or long-term interest rates have to go down to be consistent with the current level of stock prices.”

Strategist Lauren Sanfilippo at Bank of America sees China’s selling of Treasuries, circa 2023, as a bookmark of sorts. The other was in 2013, when senior People’s Bank of China officials declared it was “no longer in China’s favor to accumulate foreign exchange reserves.” That, she argues, marks “the beginning of a downtrend in China’s holdings of US Treasuries.”

In late 2013, Sanfilippo says, China owned more than $1.3 trillion in Treasuries, in excess of 23% of all foreign holdings. More recently, and over the last 18 months, China has sold more than $200 billion in Treasuries.

This isn’t the full picture, though. All in all, Sanfilippo says, “the landscape of buyers of US Treasuries has shifted. While foreigners own 30%, that share has been declining. The Federal Reserve owns 18%, or another $4.7 trillion, down from a peak of $6 trillion via the monthly run off of $60 billion of Treasuries through their ongoing quantitative tightening program. Importantly, and increasingly coming to the table, are hedge funds, pensions, retail investors, mutual funds and insurers as marginal buyers.”

In Sanfilippo’s view, the “bottom line” is that “foreigners are still a major source of demand for our paper. An important fact, particularly when accounting for a growing US deficit. A list of concerns such as a shifting geopolitical landscape, polarizing US politics, hits to the US credit rating, or a worrying pile of debt, could all chip away at the allure for US assets over the long term.”

But, she notes, “good reasons remain for our preference of US dollar-denominated assets relative to non-US dollar assets. The US economy remains the largest, wealthiest and most competitive economy backstopped by the US corporate sector. Globally speaking, that’s a rare combination that continues to drive flows into US assets, both foreign and domestic.”

Even so, Washington’s bankers in Asia losing faith en masse could be the game-changer officials in Beijing have long feared. The nine Asia-Pacific economies holding the most US debt are sitting on more than $3 trillion of it.

That, at a moment when the US national debt tops $33 trillion and the Fed might soon extend its most aggressive tightening cycle since the late 1990s. Add in extreme political dysfunction in Washington putting the last of its AAA credit ratings at risk.

US Federal Reserve Chair Jerome Powell. Image: Xinhua

The risk is that all that red ink prompts more of Washington’s bankers to buy fewer Treasuries or, worse, call some loans.

In March 2018, Cui Tiankai, China’s then-ambassador to the US, hinted that Beijing might scale back on debt holdings amid concerns about losses. “We are looking at all options,” he said.

That same year, Fan Gang, a top PBOC adviser, said the time to diversify had come. “We are a low-income country, but we are a high-wealth country,” Fan said. “We should make better use of capital. Rather than investing in US government debt, it’s better to invest in some real assets.”

Those concerns in 2018 were being expressed seven years after the US lost the first of its AAA ratings – from S&P Global Ratings. They also came nearly a decade after then-Chinese premier Wen Jiabao in 2009 urged Washinton to safeguard its creditworthiness.

“We have made a huge amount of loans to the United States,” Wen said at the time. “Of course, we are concerned about the safety of our assets. To be honest, I am a little bit worried.” Washington, Wen stressed, must “honor its words, stay a credible nation and ensure the safety of Chinese assets.”

One big worry for China and the rest of Asia: that bickering in Washington between President Joe Biden’s Democrats and the Republicans loyal to predecessor Donald Trump might brawl in ways that prompt Moody’s Investors Service to downgrade the US as Fitch Ratings did in August.

With approval ratings in the low 40s, at best, Biden’s path to defeating Trump in November 2024 is narrowing. Trump has suggested in the past that he might default on US debt to retaliate against China.

Also on Trump’s watch, from 2017 to 2021, America’s standing in Transparency International’s annual corruption perceptions index nosedived 11 places since from 2017 to 2021 – to a 27nd ranking from 16th place.

These aren’t comforting data points for China and other Asian governments effectively holding Washington’s mortgage. As 2024 approaches, Xi, the strongest Chinese leader since Mao Zedong, may also be trying to avoid terrible headlines about hundreds of billions of state wealth lost to US yield volatility. It’s complicated, of course.

The resulting surge in US yields if China accelerated Treasuries selling would boomerang back on China’s economy, just as it’s growing the slowest in three decades. As rates rise, American consumers will buy fewer Chinese goods. The US, of course, is already slowing. In October, the US added just 150,000 nonfarm payroll jobs, a marked slowdown.

“Some of [October’s] weakness will reverse next month with the United Auto Worker (UAW) strike ending, but there is more weakness beyond that,” says economist Thomas Simons at Jefferies, a US investment bank. “This data fits in line with the trend that had been in place before the surprisingly strong September print.”

Yet as Buffett’s Berkshire noted in a recent report: “The effects of significant increases in home mortgage interest rates in the US over the past year has slowed demand for our home building businesses and our other building products businesses. We continue to anticipate certain of our businesses will experience weakening demand and declines in revenues and earnings into 2024.”

As such, economist Mark Williams at Capital Economics doubts that Beijing is letting political objectives dictate foreign exchange reserve management.

“Falls in the value of China’s recorded holdings of US Treasuries tell us little about whether China is divesting from the dollar,” Williams notes. “A broader look at the data suggests that it isn’t, despite geopolitical pressure to decouple. The analysis of the US Fed suggests that China has been a net buyer overall,” of dollar assets.

Photo: Reuters/Jason Lee
China isn’t apparently wholesale dumping US debt. Photo: Asia Times Files / Reuters / Jason Lee

Setser, who’s now with the Council on Foreign Relations, thinks worries about China dumping US debt are overdone. In his view, there “aren’t realistic channels for financial contagion” from the second-biggest economy to the US. Bottom line, he sees “no real scenario” in which China “disrupts” American markets in ways the Fed can’t handle.

But can the PBOC handle things? Some of the US Treasuries sales of late seem to reflect a desire to have funds available to keep the yuan from extending its 5.5% drop this year.

On the one hand, it’s increasing the odds China will import inflation amid elevated global commodities prices. On the other, it raises the risks of additional defaults among property developers as offshore debt payments become more expensive.

Still, as recent actions by Xi’s government and Buffett suggest, there may be an even bigger economic storm brewing in 2024. As such, some battening down of the hatches may be in order.

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MSCI makes new client coverage leadership appointments in Asia | FinanceAsia

New York-headquartered financial services provider, MSCI, announced yesterday (October 30) via media note two leadership appointments across the firm’s Asian client coverage teams.

Ryoya (Tera) Terasawa has been appointed as head of Japanese client coverage, based in Tokyo. Meanwhile, Chitra Hepburn has taken on the role of head of South and Southeast Asia client coverage, from Singapore.

Terasawa’s new role takes immediate effect and sees him report to Kazuya Nagasawa, head of Asia Pacific (Apac) client coverage. He will lead the team’s commercial activities in the Japanese market, managing key client relationships.

“Tera will lead MSCI’s go-to-market strategies, drive revenue growth across new business and renewal targets, and represent MSCI in Japan. Teras will also partner closely with key stakeholders and product management globally to deliver a cohesive, solutions-driven strategy for our clients in Japan,” a spokesperson for MSCI told FinanceAsia.

Prior to his new role, Terasawa spent over 23 years with JP Morgan, most recent serving as head of Japan sales and marketing, dealing with institutional clients. His past expertise spans areas including fixed-income derivatives sales, and equity derivatives trading and structuring.

“We will continue to strengthen commercial success in the Japan market and capitalise on accelerating growth across all client segments in Japan,” the spokesperson noted.

In Singapore, Hepburn started her new South and Southeast Asian role on October 16, also reporting to Nagasawa. The new post is an expansion of her current remit as Asia-based leader of environment, social and corporate governance (ESG) and climate client coverage.

“We are confident that under Chitra’s strategic leadership, the South and Southeast Asia region will continue to scale and achieve newer heights,” the contact said. She confirmed that Hepburn will remain responsible for MSCI’s ESG and climate business across Apac.

Hepburn joined MSCI in Singapore in 2019 to lead the firm’s regional ESG and climate business, after over two years serving as managing director with software provider, ESG Global, according to her LinkedIn profile. She has 15 years of project finance experience in investment banking, and over six years of extensive experience in China, focussing on corporate development and cleantech investments.

“I am confident that we will continue to build on our capabilities to support the huge demand from our clients in the region, as institutional investors are increasingly integrating climate transition into their mainstream investment strategies,” she told FA.

MSCI is expected to release its 2023 third quarter (Q3) earnings later today, US-time. 

As of June 2023, the firm’s ESG and climate operating revenues in Q2 stood at $71.2 million globally, up 29.2% from a year ago. The growth was attributed to strong growth from recurring subscriptions related to ratings, climate and screening products. Meanwhile, MSCI’s total operating revenues in 2023 Q2 increased by 12.6% year-on-year to reach $621.2 million.

Commenting on both appointments, Nagasawa noted in the announcement: “This is an important testimony to the value we place on these Apac markets and on our growing commitment to them.”

“I am confident that their wealth of experience working across client segments and deep industry insights, will be key to ensuring we bring the best products and solutions to our established and growing client base in the region.”

¬ Haymarket Media Limited. All rights reserved.

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How Moody’s new affiliate VIS Rating will boost the development of Vietnam’s local corporate bond market | FinanceAsia

Southeast Asia’s thriving economies, including Vietnam, will continue to fuel growth in the region’s developing domestic corporate bond markets. In particular, Vietnam’s local corporate bond market is set to get a boost with the recent launch of a new local credit rating agency (CRA) in the country by Moody’s and several leading local financial institutions.

“Moody’s has long recognised the pivotal role that domestic bond markets play in financing investments to propel growth not only in Southeast Asian economies but also the broader Asia region,” said Wendy Cheong, managing director and regional head of APAC, Moody’s Investors Service. She added, “Over the years, we have formed domestic strategic alliances in China, India, Korea and Malaysia with local CRAs that have actively contributed to the sustainable expansion and advancement of their bond markets.”

Wendy Cheong, MD and regional head of APAC, Moody’s Investors Service

More recently, Moody’s has made another bold commitment to its domestic strategy. In September, it formally launched Vietnam Investors Service And Credit Rating Agency Joint Stock Company (VIS Rating) in partnership with several leading local financial institutions in Vietnam. Moody’s is the largest minority shareholder of the domestic CRA. VIS Rating is Moody’s first investment in a greenfield CRA in a frontier market.

“VIS Rating is ready to support the development of efficient and liquid debt capital markets in Vietnam with the aim of providing independent, best-in-class rating services to corporate bond issuers in the country,” said Tran Le Minh, managing director of VIS Rating. He added, “At the same time, we will continue to draw on Moody’s global expertise and deep insights to introduce best practices to the domestic market.”

Tran Le Minh, MD, VIS Rating

Moody’s firm commitment rides on the back of the large growth potential of Southeast Asia’s (ex-Singapore) economies and domestic corporate bond markets, including Vietnam. Over 2017-2022, the region’s local bond markets collectively recorded a cumulative annual growth rate (CAGR) of 6.4% and are now almost triple the size of the cross-border market in terms of issuance volume. Domestic corporate bond issuance volumes have returned to pre-Covid levels at about $140 billion in 2022[1]. Meanwhile, on a macroeconomic level, the region’s GDP accounts for 12% of Asia’s emerging markets and grew at 4.8% CAGR over 2017-2022.

Moreover, multinationals are scouring Southeast Asia, including Vietnam, to diversify their supply chains amid elevated geopolitical tensions. Given Southeast Asia’s large consumer base and infrastructure development needs, the region’s economies are set to expand further. Vietnam is no exception. Moody’s projects the economy will grow faster than most peers[2] in Southeast Asia through 2024.

Furthermore, the country’s local bond market has large room to grow with outstanding corporate bonds consisting of just 13% of GDP as of August 2023. This level comes after brisk growth of 30% CAGR over 2017-2022. As Vietnam’s domestic corporate bond market develops, credit ratings and research will play a meaningful role by helping companies access new sources of capital, diversify their funding base, enhance market transparency, as well as maintain investor confidence during times of market stress.

“In Vietnam, VIS Rating is well placed to empower bond market participants with informed decision-making through its independent domestic credit ratings,” said Tran. He added, “Our activities such as joint events with Moody’s, foundational and market educational outreach will help deepen Vietnam’s credit culture and bring value to local market participants.”

Leveraging Moody’s global best practices and extensive capabilities, VIS Rating has built out its ratings and research function. These include developing its rating methodologies; publishing research reports; engaging in market outreach through podcasts, media interviews and industry events; as well as developing its own database and ratings platform.

VIS Rating outreach activity with market participants

“For Moody’s, VIS Rating not only broadens our network of domestic partners in Asia but also complements our cross-border coverage,” said Cheong. She added “Since we first assigned a sovereign rating to Vietnam in 1997, we have grown to become the leading global rating agency in terms of cross-border coverage in the country.”

Beyond ratings, Moody’s continues to harness its global insights and local expertise to offer timely and high-quality research on Vietnam. For example, it has been hosting its annual Inside ASEAN investor conference virtually and in-person in Hanoi and Ho Chi Minh City since 2016.

As Vietnam’s domestic bond market flourishes, Moody’s is undoubtedly there for the long haul. It remains committed to providing talent and technical support to VIS Rating as the company embarks on an exciting journey to become the country’s rating agency of choice. 


[1] Source: Moody’s, AsianBondsOnline, BIS, Securities and Exchange Board of India.

[2] Source: Moody’s sovereign report, titled, “Government of Vietnam – Ba2 stable: Update following change in economic strength score and GDP forecasts” published 13 July 2023.

 

¬ Haymarket Media Limited. All rights reserved.

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Higher for longer US rates ringing Asia alarm bells

The broadside Moody’s Investors Service just fired at the US dollar and interest rates dramatizes why the next few months could be uniquely chaotic for global markets.

It stands to reason that the one major credit rating company still holding Washington in AAA esteem is anxious to announce a downgrade.

Twelve years after S&P Global downgraded the US, Fitch Ratings last month followed suit. Fitch’s move was about more than America’s national debt careening toward US$33 trillion.

It was also a response to the “steady deterioration in standards of governance” as politicians play games with raising Washington’s statutory debt limit.

Now, Moody’s warns that the dysfunction surrounding a government shutdown on October 1, the latest manifestation of extreme polarization, may be the reason to cut Washington’s rating to Aa1.

Investors seem way ahead of credit rates as US yields move higher. Rates on 10-year Treasury bonds are at a 16-year high this week, a dubious milestone that’s slamming European and Asian markets. Benchmarks from Japan to South Korea to Australia plunged.

On Tuesday alone, MSCI’s gauge of global stocks plunged 1.24%, an outsized move for the benchmark. By Wednesday, the index was falling for a ninth day as it approaches its longest losing streak in more than a decade.

The Cboe Volatility Index, Wall Street’s so-called fear gauge, flashed its most intense warnings since May, when US inflation hit a 41-year high.

Adding to the disorientation is the dollar’s curious durability. The more investors fret about the state of global finance, the more the dollar rises. The yen’s move toward 150 to the dollar, a psychologically important level, has markets bracing for currency intervention by Japanese authorities.

The US Federal Reserve, meanwhile, is making it clear it’s not done hiking rates. When Minneapolis Fed President Neel Kashkari on Tuesday assigned 40% odds that rates will still go “meaningfully” higher, traders figure policymakers are telegraphing more austerity to come.

Already, 11 Fed tightening moves in 18 months are working their way through global markets. The specter of more hikes could wreak havoc in debt markets, equity bourses and property sectors everywhere.

Europe is uniquely poorly positioned to withstand the coming financial storm. Rising yields will hit real estate values from Tokyo to Seoul to Bangkok.

A major challenge for Asia is figuring out which financial shoes might drop next as well as how and where the tremors will be felt.

The US government shutdown for which Republican lawmakers are agitating would furlough hundreds of thousands of federal workers and suspend vast swaths of public services, crimping US economic growth.

US House Speaker Kevin McCarthy and his Republican party are angling for a government shutdown. Image: Twitter

“A shutdown would be credit negative for the US sovereign,” Moody’s analysts wrote in a note this week. They argue that “it would underscore the weakness of US institutional and governance strength relative to other AAA-rated sovereigns that we have highlighted in recent years.”

In particular, Moody’s adds, “it would demonstrate the significant constraints that intensifying political polarization put on fiscal policymaking at a time of declining fiscal strength, driven by widening fiscal deficits and deteriorating debt affordability.”

Economists at Wells Fargo write that “should a shutdown transpire, there could be a negative impact of the US dollar, albeit one that is likely to be modest and short-lived.”

Gita Gopinath, first deputy managing director at the International Monetary Fund, warns of “tougher global financial conditions.” As the “fight to bring inflation back to target continues,” Gopinath says, “we expect global interest rates to remain high for quite some time,”

Furthermore, she notes, “there are reasons to think that rates may never return to the era of ‘low for long.’ This possibility is reflected in US 10-year Treasury bond yields, which have surged” to the “highest level since the global financial crisis.” In this environment, Gopinath says, “financing conditions for emerging markets can be expected to remain challenging.”

Analyst Gennadiy Goldberg at TD Securities says “overall, we view the shutdown as one of the many headwinds the economy faces this fall.” Analyst Michael Pond at Barclays tells Bloomberg that a government shutdown “will likely lead to some heightened uncertainty,” given how vulnerable Asia’s export-led economies are to “hot money” flows.

Shutdown risks are coinciding with surging oil prices and a massive strike by Detroit auto workers, both of which are exacerbating inflation risks. As such odds are Fed Chairman Jerome Powell’s team will hit the monetary brakes even harder.

Count Jamie Dimon, CEO of JPMorgan Chase, among those who believe Fed rates – in the 5.25%-5.5% range now – could go significantly higher as inflation remains elevated.

“I am not sure if the world is prepared for 7%,” Dimon told the Times of India. “I ask people in business, ‘Are you prepared for something like 7%?’ The worst case is 7% with stagflation. If they are going to have lower volumes and higher rates, there will be stress in the system. We urge our clients to be prepared for that kind of stress.”

What’s more, Dimon referenced Warren Buffett’s famous observation that “only when the tide goes out do you discover who’s been swimming naked.” As Dimon notes of more assertive Fed tightening moves, “that will be the tide going out.”

“Investors,” says analyst Paul Nolte at Murphy & Sylvest Wealth Management, “are beginning to realize that a higher for longer interest rate environment is a likely outcome and are slowly adjusting to the new normal. Higher-for-longer has been the mantra of the Fed for a few months. It is only recently that the markets have been taking them at their word.”

The irony, of course, is that the worse things get for the US fiscal outlook, the more investors flock to the dollar. That’s luring capital away from China, Japan, South Korea and other top Asian economies at the worst possible moment for Beijing, Tokyo, Seoul and beyond. Counterintuitively, big losses in US sovereign securities are increasing the dollar’s appeal.

The dollar keeps getting stronger. Photo: Asia Times Files / AFP

Even before Moody’s stumbled onto the scene, global investors faced the specter of a third straight year of losses in the $25.5 trillion Treasury debt market. All the red ink reflects investor concerns about liquidity amid the most aggressive Fed tightening cycle since the mid-1990s and extreme volatility as inflation flares up across the globe.

Yet from an interest rate differential standpoint, says Nomura Inc strategist Andrew Ticehurst, the dollar’s legacy safe-haven status, America’s steady growth and high yields make for an “unusual and powerful combination” at a moment when the potential for sudden risk-off pivots abound in markets.

Another reason this appears to fly in the face of both political and financial reality: US President Joe Biden’s dismal approval ratings. As Congressional Republicans and Democrats lock horns, Biden’s low-40s support rate leaves the White House little hope of cajoling lawmakers not to shut down the government, gamble with Washington’s credit rating or pursue reforms to increase US innovation and productivity to tame inflation.

The same goes for Biden’s latitude to protect the roughly $3.2 trillion of US Treasury securities held by top Asian authorities. Those foreign exchange reserves could find themselves in harm’s way as Moody’s joins S&P and Fitch in closing the books on America’s AAA era.

Japan would be the biggest loser with its more than $1.1 trillion of US government debt. China holds $821 billion and Korea has $116 billion. Along with losses on state savings, surging US rates could devastate Asia’s biggest trade-reliant economies, each of which is navigating their own domestic debt troubles.

In China, it’s property markets and a titanically large shadow-banking sector. In Japan, it’s the most crushing debt load in the developed world made worse by a fast-aging population. In Korea, it’s record household debt undermining broader consumption dynamics.

Here, the dollar’s trajectory – and how its rally defies gravity as bonds sell off – is adding to Asia’s headaches.

Economist Jeongmin Seong at the McKinsey Global Institute says that “many Asian countries accumulated substantial foreign exchange reserves after the Asian financial crisis of the late 1990s.” In 2022, he notes, Asia accounted for 40% of global capital flows, four times the level in 2000.

“But there may be pockets of vulnerability to any sudden outflow of capital,” he explains. “In Indonesia and Vietnam, for instance, foreign direct investment accounts for 20% and 14% of total investment, respectively.”

Episodes of runaway dollar strength tend to end badly for Asia. Look no further than the region’s 1997-98 financial crisis, which was precipitated by the US Fed’s aggressive 1994-1995 rate hike cycle.

Episodes of yen volatility pose their own threat. Worries about surging Japanese government bond yields are rippling through global credit markets as the Bank of Japan hints at an exit from quantitative easing. That poses outsized risks because 24 years or zero-to-negative rates morphed Japan into the globe’s premier creditor nation.

These funds are then invested in higher-yielding assets from Brazil to South Africa to Indonesia. This giant “yen-carry trade” often explains why sharp yen moves often slam markets everywhere.

IMF economist Thomas Helbling says Asia is highly exposed on account of debt levels. “Asia’s increased borrowing in recent decades has augmented the region’s exposure to rising interest rates and heightened market volatility,” Helbling explains. “Borrowing by the region’s governments, companies, consumers and financial firms is well above levels prior to the global financial crisis.”

Trouble is, Helbling says, “highly leveraged companies face greater risk of default as monetary policies and financial conditions remain tight. Even with resilient economic growth, interest payments may exceed earnings as borrowing costs rise, reducing firms’ ability to service their debts.” Generally speaking, he adds, “corporate debt in Asia is concentrated in firms with low-interest coverage ratios.”

McKinsey economist Seong says that “some Asian economies, government, household, and corporate debt has risen by even more than the Organization for Economic Cooperation and Development average.”

Seong points out that nonfinancial corporate debt in China is 150% and in Japan, South Korea and Vietnam it is more than 120%. In 2021, Korea’s household debt reached 106% and Australia’s was 119%, against an OECD average of 60%. “Carrying this amount of leverage will be costly if interest rates continue to rise,” Seong notes.

A porter walks on a bridge in Chongqing, China with new residential buildings in the background.
Photo: CNBC Screengrab / Zhang Peng / LightRocket / Getty Images

On the property side, “there’s is a risk of a fall in asset prices, including real estate,” Seong says. Between 2015 and 2021, the average nominal housing price rose by 50% in China, 34% in Australia, and 17% in South Korea. Price inflation in cities is even higher. In Seoul, for example, the price-to-rent ratio increased 2.5 times in the 2015-2021 period.

At home, Biden also must ensure the stability of banks as Fed rate hikes continue. Mohamed El-Erian, advisor at Allianz, worries higher borrowing costs may cause havoc in real estate markets. “We’ve got to be really careful,” El-Erian warns. “The housing market is central to the economy.”

At the same time, the fallout from the collapse of Silicon Valley Bank in March “is casting doubt on America’s ability to maintain its leadership of the global monetary system,” notes economist Diana Choyleva at Enodo Economics. It’s up to Washington “to take decisive steps to shore up confidence, including extending dollar credit lines to a clutch of Asian countries.”

As Choyleva stresses, “it is in Asia that the United States’ global financial hegemony is being most keenly contested – by China.”

It’s hard not to think Washington’s shutdown showdown is doing Beijing’s work for it.

Follow William Pesek on X, formerly known as Twitter, at @WilliamPesek

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Mazars in Singapore appoints new leaders | FinanceAsia

Paris-headquartered audit, tax and advisory firm, Mazars, announced earlier this month the appointment of new leaders across its capital markets, risk management, and outsourcing businesses in Singapore.

Chee Keong Ooi, Shireen Tan and Justin Lim have each been appointed as head of capital markets, head of risk management and head of outsourcing respectively, effective September 1.

“Effective leadership involves making timely strategic decisions that align with both the current macro challenges and our long-term vision,” Rick Chan, managing partner in Singapore and head of audit and assurance in Apac, told FinanceAsia.

The new leaders will provide regular updates on the progress and development of their respective teams to the Mazars’ executive committee, he added.

With over 20 years of experience in accounting, Ooi brings to his new role significant experience advising clients seeking initial public offerings (IPOs) and reverse takeovers via the Singapore and Hong Kong exchanges. Having been with Mazars for over 11 years, he most recently served as audit partner based in Singapore, according to his LinkedIn profile.

Chan explained that Ooi’s senior role is newly created. Among his priorities will be solidifying Mazar’s reputation and shaping the firm’s strategic direction in the capital markets sector.

“Ooi’s responsibilities span vital areas, including business development, client relationship management, team growth and development within Mazars’ capital market sector, and overseeing risk assessments for capital market projects,” Chan noted.

Mazars was the second most active firm in IPO audit services in Singapore last year, supporting two out of nine offerings and representing 36% of the S$17.9 million ($13.1 million) in funds raised in the market.

“Listing on the international market continues to hold strong appeal for investors and companies alike,” Ooi told FA, citing recent IPOs from Arm and Instacart in the US, both of which bolstered market sentiment and investor confidence.

Meanwhile, he identified market volatility and regulatory hurdles as some of the greatest challenges for Asia’s current IPO market.

“Factors like uncertainty, geopolitical tensions, and economic instability can affect market volatility,” he explained.

“Navigating regulations, compliance, and reporting standards can also be complex for companies seeking to go public.”

He added that concerns around valuation, liquidity, and exit strategies can also affect capital raising and share prices.

“For venture-backed companies, the ability to offer exit opportunities to early-stage investors and founders through IPOs is crucial,” he explained.

Risk awareness

Shireen Tan joins Mazars from PricewaterhouseCoopers (PwC), where her most recent role involved serving as senior manager, according to her LinkedIn profile.

In her new capacity, Tan will aim to foster a risk-aware culture, enhance risk identification, and implement robust risk mitigation strategies, Chan outlined.

“Effective risk management is not just about minimising potential risks or losses but also about seizing opportunities in an ever-evolving business landscape,” Tan shared in the press release.

“I’m committed to working closely with cross-functional teams to align risk management strategies with the firm’s objectives, enabling us to make informed decisions that drive sustainable growth.”

Also forming one of the key changes is Justin Lim’s appointment to lead Mazars Singapore’s outsourcing team. In his new role, Lim will be responsible for further strengthening the outsourcing capability, which is the firm’s third largest service line after audit and assurance services. Alongside his new remit, he will continue to lead the Asia-based Corporate Secretarial segment.

Additionally, Tan Shen Way and Victor Ouyang were promoted as local partner in audit and assurance, effective September 7.

¬ Haymarket Media Limited. All rights reserved.

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Indonesian PPP player secures syndicated sustainability-linked facility | FinanceAsia

PT Sarana Multi Infrastruktur (PT SMI), a dedicated infrastructure entity under the jurisdiction of Indonesia’s Ministry of Finance, announced recent success in obtaining a $700 million sustainability-linked syndicated term loan facility. The firm serves as a financing vehicle for the development of nationally significant infrastructure projects, through public-private partnerships (PPPs).

“This syndicated loan is intended to refinance existing projects as well as to fulfil new financing needs primarily for sustainable infrastructure projects in Indonesia,” the press release noted.

The new funds will be used to refinance a maturing $700 million offshore syndicated term loan that was first arranged in 2020. The sustainability-linked offering closed on September 13 with aggregate commitments of $1.8 billion and was 2.6 times oversubscribed.

Key performance indicators (KPIs) linked to the facility include growing the company’s sustainability financing portfolio, and increasing the number of employees undertaking environment, social, and governance (ESG) training.

Green opportunity

Speaking to FinanceAsia about the transaction, Colin Chen, head of ESG finance for Asia Pacific at MUFG Bank, which served as one of the transaction’s mandated lead arrangers and bookrunners (MLABs), highlighted the opportunities brought by sustainability-linked financing for companies active in “hard-to-abate sectors,” given no requirements around the use of proceeds.

Kunardy Lie, director of institutional banking at DBS Indonesia – also a MLAB – said his team sees “abundant opportunities” to push the sustainability agenda through green and transition financing solutions in the local market.

Although emerging economies like Indonesia are tasked with driving economic growth alongside a low carbon budget, environmental and socially-conscious funding initiatives can help advance sustainability agendas, Lie noted. He cited the market’s PPP scheme as a policy catalyst which convenes industry players, financial institutions and regulators to establish common practices to approach ESG issues.

First introduced in 2005, the state-backed PPP Project Book lists out a range of infrastructure projects that are open to private sector participation, with a view to bridging the existing infrastructure funding gap and driving Indonesia’s national economy. PT SMI is actively involved in the scheme and acts as a crucial financier in some of the key national infrastructure projects.

“We are excited to support PT SMI in their venture to finance ongoing projects including sustainable infrastructure projects,” Lie said, noting that DBS’s relationship with PT SMI started in February 2020 around the arrangement of the original working capital facility.

Renewables projects, as well as other forms of energy transition segments constitute growing sub-sectors within the domestic infrastructure market, Chen added.

He cited supportive policy initiatives, including the Just Energy Transition Partnership (JETP) which was signed off during last November’s G20 summit, and the country’s rich solar and wind resources as helping to drive Indonesia’s developing green economy.

“We will want work closely with policymakers and the private sector to leverage this important initiative in support of Indonesia’s net zero transition,” Chen said.

“This sustainability-linked syndicated term loan facility is a real example of innovative fundraising, by also implementing our commitment towards sustainability target,” Edwin Syahruzad, president director of PT SMI, commented in the press release.

In addition to DBS and MUFG, the MLABs for the transaction included Bank of China (Hong Kong), CTBC Bank Co., Ltd., Mizuho Bank, and United Overseas Bank (UOB). UOB also acted as the MLABs’ transaction and overall sustainability coordinator for the transaction.

PT SMI and the remaining MLABs did not respond to FA’s requests for comment.

¬ Haymarket Media Limited. All rights reserved.

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Mazars in Singapore appoints new Southeast Asian leaders | FinanceAsia

Paris-headquartered audit, tax and advisory firm, Mazars, announced earlier this month the appointment of new leaders across its regional capital markets, risk management, and outsourcing businesses.

Chee Keong Ooi, Shireen Tan and Justin Lim have each been appointed as head of capital markets, head of risk management and head of outsourcing respectively, effective September 1.

“Effective leadership involves making timely strategic decisions that align with both the current macro challenges and our long-term vision,” Rick Chan, managing partner in Singapore and head of audit and assurance in Apac, told FinanceAsia.

The new leaders will provide regular updates on the progress and development of their respective teams to the Mazars’ executive committee, he added.

With over 20 years of experience in accounting, Ooi brings to his new role significant experience advising clients seeking initial public offerings (IPOs) and reverse takeovers via the Singapore and Hong Kong exchanges. Having been with Mazars for over 11 years, he most recently served as audit partner based in Singapore, according to his LinkedIn profile.

Chan explained that Ooi’s senior role is newly created. Among his priorities will be solidifying Mazar’s regional reputation and shaping the firm’s strategic direction in the capital markets sector.

“Ooi’s responsibilities span vital areas, including business development, client relationship management, team growth and development within Mazars’ capital market sector, and overseeing risk assessments for capital market projects,” Chan noted.

Mazars was the second most active firm in IPO audit services in Singapore last year, supporting two out of nine offerings and representing 36% of the S$17.9 million ($13.1 million) in funds raised in the market.

“Listing on the international market continues to hold strong appeal for investors and companies alike,” Ooi told FA, citing recent IPOs from Arm and Instacart in the US, both of which bolstered market sentiment and investor confidence.

Meanwhile, he identified market volatility and regulatory hurdles as some of the greatest challenges for Asia’s current IPO market.

“Factors like uncertainty, geopolitical tensions, and economic instability can affect market volatility,” he explained.

“Navigating regulations, compliance, and reporting standards can also be complex for companies seeking to go public.”

He added that concerns around valuation, liquidity, and exit strategies can also affect capital raising and share prices.

“For venture-backed companies, the ability to offer exit opportunities to early-stage investors and founders through IPOs is crucial,” he explained.

Risk awareness

Shireen Tan joins Mazars from PricewaterhouseCoopers (PwC), where her most recent role involved serving as senior manager, according to her LinkedIn profile.

In her new capacity, Tan will aim to foster a risk-aware culture, enhance risk identification, and implement robust risk mitigation strategies, Chan outlined.

“Effective risk management is not just about minimising potential risks or losses but also about seizing opportunities in an ever-evolving business landscape,” Tan shared in the press release.

“I’m committed to working closely with cross-functional teams to align risk management strategies with the firm’s objectives, enabling us to make informed decisions that drive sustainable growth.”

Also forming one of the key changes is Justin Lim’s appointment to lead Mazars Singapore’s outsourcing team. In his new role, Lim will be responsible for further strengthening the outsourcing capability, which is the firm’s third largest service line after audit and assurance services. Alongside his new remit, he will continue to lead the Asia-based Corporate Secretarial segment.

Additionally, Tan Shen Way and Victor Ouyang were promoted as local partner in audit and assurance, effective September 7.

¬ Haymarket Media Limited. All rights reserved.

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