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HONG KONG/SINGAPORE, June 1 (Reuters) - Southeast Asian e-commerce and gaming giant Sea Ltd (SE.N) is winding down its investment arm, two people with knowledge of the matter said, amid a cooling investment environment globally as macroeconomic and market uncertainty weigh on valuations. The arm, Sea Capital, stopped new equity investing in 2022 with leadership moving on in May, while Sea itself is placing less priority on investing given market conditions, one of the people said. Singapore-based Sea launched Sea Capital in March 2021 with initial capital of $1 billion after buying Hong Kong's Composite Capital Management, founded by former Hillhouse Capital partner David Ma who became Sea Capital's chief investment officer. One of the people said the decision to wind down Sea Capital was prompted by "less deal activity" resulting in fewer investment opportunities. Sea Capital had made at least three investments, including in 2021 into collapsed cryptocurrency exchange FTX.

Persons: David Ma, Ma, FTX, Kane Wu, Fanny Potkin, Sumeet Chatterjee, Christopher Cushing Organizations: Capital, Hong Kong's, Capital Management, Hillhouse, Sea, U.S, Asia's, Thomson Locations: HONG KONG, SINGAPORE, Asia, Japan, Singapore, New York, Sea, India, Europe, Hong Kong

Embattled Credit Suisse had been preparing for years to set up a wholly owned local bank in China. Credit Suisse and UBS declined to comment. The clock is ticking for UBS to close the deal with Credit Suisse. The China Securities Regulatory Commission did not immediately respond to a Reuters request for comment. UBS currently runs a 67%-owned securities joint venture with a Beijing state-owned company.

Persons: Sergio Ermotti, Summer Zhen, Selena Li, Engen Tham, Sumeet Chatterjee, Muralikumar Organizations: Credit Suisse, UBS, Swiss, Credit, National Financial Regulatory Administration, Suisse's, China Securities Regulatory Commission, Thomson Locations: HONG KONG, SHANGHAI, China, Swiss, Beijing, Hong Kong, Shanghai

That could necessitate a second round of debt restructuring eventually at some of the developers, they said. Private developers have been in turmoil since mid-2021 following a crackdown on debt levels by Beijing that ensnared China Evergrande Group (3333.HK), then the No.2 developer, and eventually spread in the sector. Evergrande and Sunac China (1918.HK) are the most prominent among the handful of companies that have announced their offshore debt restructuring terms so far. More are expected to do so in the coming months, which will also include terms such as longer maturity extensions, lower coupons, and converting some debt into equity, developers and advisers said. Moreover, the private developers are staring at lower potential future revenues as they are unable to build on their land banks due to their precarious financial positions.

☆ UBS says it was rushed into unwanted Credit Suisse rescue merger
▼ + stars: | 2023-05-17 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

The wave of deposit outflows and a major share-price drop prompted Switzerland's central bank on March 15 to offer Credit Suisse liquidity assistance. The next day, UBS and Credit Suisse signed a confidentiality agreement upon which the former began due diligence, the UBS filing showed. By then, Credit Suisse was experiencing deposit and net asset outflows at levels substantially exceeding rates of the July-September quarter, UBS said. In early December, UBS management undertook a preliminary assessment of the consequences of a Credit Suisse purchase, which it presented to the Strategy Committee on Dec. 19. From December to mid-January, Credit Suisse executives had also been discussing with the government about its options including a merger with UBS, the UBS filing showed.

But, given the hopes invested in China's economic growth and liberalisation, foreign firms' demand for expert knowledge about the Chinese market, the regulatory landscape, potential business partners and opportunities will inevitably keep growing. Smaller firms saw opportunity to fill the space left by any rivals, like Capvision, that fall foul of China's authorities. China's expert network market, however, will suffer from bad publicity in the short-term, as "no one wants to be associated with police crackdown," said Max Friberg, CEO of Inex One, a Stockholm-based marketplace connecting investors with expert networks. For now though, the trade in expert information clearly has become more cautious. "It's unfortunate that the expert network business gets into the public limelight in such a way," China Insights Consultancy (CIC), the country's second largest expert network company, said in a statement to Reuters.

These consultancies thrived by providing investors - from global hedge funds to private equity firms - access to industry experts and investigators who could obtain valuable corporate information. One private credit investor who used to join Capvision's calls with "industry experts" said clients did not want to pay top dollar for easily available public information. Many China-based consultancy firms also outsourced on the ground investigations to local contractors. Even before the latest raids on consultancy firms, some due-diligence firms were warned to stay away from Xinjiang related projects, sometimes by security authorities, according to industry sources. China denies abuses in Xinjiang, a major cotton producer that also supplies much of the world's materials for solar panels.

☆ Exclusive: CICC Capital bans consulting firm Capvision after China crackdown-sources
▼ + stars: | 2023-05-10 | by ( Julie Zhu | ) www.reuters.com time to read: +2 min

Capvision is the latest consultancy and due diligence firm to get caught in Beijing's sweeping crackdown on what state media describes as "intensifying" law enforcement aimed at protecting national security. The ban will come into immediate effect, the memo said, adding that research teams should also review previous dealings with Capvision. CICC, which handles media queries for the alternate investment arm, declined to comment. Chinese police raided Capvision offices over what state media this week reported were national security issues. The CCTV report said Capvision had accepted projects from overseas companies to source information, including "state secrets and intelligence" on sensitive sectors including defence and advanced technology.

☆ Exclusive: HSBC reaches deal to buy out China fund partner -sources
▼ + stars: | 2023-05-08 | by ( Selena Li | ) www.reuters.com time to read: +2 min

HONG KONG, May 8 (Reuters) - HSBC (HSBA.L) has agreed to buy out its China fund management joint venture partner, two people familiar with the matter said, as the Asia-focused bank pushes ahead with expansion in the world's second-largest economy. HSBC, which currently owns a 49% stake in HSBC Jintrust Fund Management, has signed an agreement with Shanxi Trust under which the Chinese state-owned company will sell its 51% holding in the joint venture to the bank, said the sources. Representatives for Shanghai-headquartered HSBC Jintrust and Shanxi Trust did not immediately respond to a request for comment. HSBC's move to boost its stake in the fund venture is the lender's latest to expand its presence in China. The London-headquartered bank converted its China insurance joint venture to a wholly-owned subsidiary in 2021, and boosted ownership of its China securities joint venture to 90% last year.

In 2020, Bain Capital set up a previous global fund after securing $3.2 billion in commitments. The program was previously called Bain Capital Distressed and Special Situations Fund and used to sit within Bain Capital's credit business. Bain Capital's special situations strategy is now a standalone business, after being carved out with an independent team outside the umbrella of the credit unit. Globally, Bain Capital currently has $16 billion of assets under management as part of its special situations strategy. Last year, Bain Capital closed a $2 billion "special situations fund" for Asia Pacific to cover a range of asset types, which included a focus on real estate.

REUTERS/Aly Song/File PhotoSYDNEY/HONG KONG, May 8 (Reuters) - Alibaba's (9988.HK) logistics arm aims to raise up to $2 billion via a listing in Hong Kong likely early next year, sources with knowledge of the matter said, bolstering hopes for a capital markets revival in the Asian financial hub. Cainiao, which has started work on the IPO, is looking to raise between $1 billion and $2 billion in Hong Kong, according to three sources. IPO PROSPECTSDealmakers hope that Cainiao's potential IPO, expected to be followed by market debuts from some of the other Alibaba units in the near-term, could help revive sluggish fundraising activities in Hong Kong. About $1.5 billion has been raised from IPOs in Hong Kong so far this year, marginally above the $1.2 billion raised in the same period last year, according to Refinitiv data. ($1 = 6.9149 Chinese yuan renminbi)Reporting by Scott Murdoch in Sydney and Julie Zhu in Hong Kong; Editing by Sumeet Chatterjee and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: Bain Capital nearing final close of Asia fund worth $6 billion - sources
▼ + stars: | 2023-05-05 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

The committed capital to the fund has exceeded the firm's initial target of $5 billion, said one of the two people and a third source with knowledge of the fundraising. Bain Capital declined to comment. About $131.6 billion in total was raised in 2022 for Asia-focused funds, about half of 2021's $251.2 billion, Preqin data showed. Fundraising so far this year has totalled just $15.5 billion, the data showed. Last year, Bain Capital closed a $2 billion "special situations fund" for Asia Pacific to cover a range of asset types but with a focus on real estate.

The visit is Dimon's first to mainland China since the pandemic gathered pace in 2020 and closed the world's second-largest economy for almost three years as it enforced some of the world's most stringent restrictions. He will also visit Hong Kong in early June after the Shanghai trip, two of the sources added. Dimon visited the Asian financial hub of Hong Kong to meet the bank's staff and clients in November 2021. A JPMorgan spokesperson in Hong Kong declined to comment on Dimon's visit to mainland China and Hong Kong. Reporting by Julie Zhu in Hong Kong, Scott Murdoch in Sydney and Nupur Anand in New York; Editing by Sumeet Chatterjee and Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

HONG KONG, May 4 (Reuters) - China's biggest financial data provider Wind Information Co told some customers late last year that it was restricting offshore users from accessing certain business and economic data as a result of the cybersecurity regulator's new data rules, two sources said. Restricted access to Wind by offshore users comes as China sharpens its focus on data usage and security amid rising geopolitical tensions and concerns about privacy in the world's second-largest economy. A Wind salesperson told the source in September the company had made the changes as per instructions from the Cyberspace Administration of China (CAC), which asked it to stop providing offshore users with certain data. The restrictions on offshore users' access to certain Wind data have expanded since last September, said the first source. Reuters has reported, citing sources that Chinese data providers including company databases Qichacha, partially owned by Wind, and TianYanCha have stopped opening to offshore users for at least months.

☆ HSBC top shareholder renews call for breaking up of bank
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: 1 min

HONG KONG, April 18 (Reuters) - Top shareholder of HSBC (HSBA.L) renewed its call for breaking up of the Asia-focused bank on Tuesday, saying the lender has failed to address key business model challenges which has resulted in deterioration in its operating performance. Ping An Asset Management Company (Ping An AMC) said in a statement HSBC has "drained" its Asia unit of dividends and growth capital to support its relatively low-return non-Asia businesses. Over the past two years, Ping An AMC said it had shared numerous structural suggestions with HSBC management ranging from listing the HSBC Asia business in Hong Kong to consolidating Asia businesses. Reporting by Selena Li; Editing by Sumeet Chatterjee and Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

Some senior dealmakers at China's third-largest brokerage by market value will see an even steeper cut of two-thirds to their 2022 bonuses, said one of the people. The trend has accelerated as employers cut pay and perks in response to the government's "common prosperity" rhetoric. MILDER CUTSA senior investment banker in China could earn three million to 10 million yuan ($445,000 to $1.48 million) a year in total remuneration, excluding stock incentives, industry sources have said. By way of comparison, Wall Street bonuses fell 26% last year to average $176,700, versus a record 2021, showed a report last month from New York State Comptroller Thomas DiNapoli. Besides remuneration cuts, some investment banks have asked staff to avoid displays of wealth such as by uploading photographs to social media of expensive meals or overseas trips, industry sources said.

☆ Chinese lenders focus on risk management amid global banking crisis
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: +2 min

BEIJING, April 3 (Reuters) - China's top lenders should enhance risk management practices and be more sensitive to macroeconomic fluctuations, senior Chinese banking officials said, in response to a global banking sector crisis that has roiled financial markets. The collapse of Silicon Valley Bank (SVB) suggests banks should strictly abide by the regulatory requirements and measures of risk management, Xie Xiaoxue, from China Construction Bank Corp's (CCB) credit management department, said. "China's commercial banks should constantly improve the organisational structure of risk management and strengthen risk governance with sound and prudent measures," Xie wrote. Executives at China's big five banks said during annual results last week the lenders have limited exposure to the banking crisis. Xie said that Chinese banks should fully use stress tests and other tools to measure the impact of economic fluctuations and the changes in market participants' financial situations.

☆ HSBC board recommends shareholders vote against spin-off resolution
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: 1 min

HONG KONG, April 3 (Reuters) - HSBC Holdings Plc's (HSBA.L) board is unanimous in recommending that shareholders vote against proposals to restructure the bank and pay fixed dividends, its chairman, Mark Tucker, told Hong Kong shareholders on Monday. The comment came as Ken Lui, an individual HSBC shareholder and leader of a Hong Kong-based investor group, called for a break up of the bank. His second proposed resolution calls on HSBC to restore pre-COVID-19 dividend levels. Tucker told the shareholders a restructuring or spin-off of its Asia business, as demanded by Lui, would create a major period of uncertainty for clients, and employees and shareholders would be disrupted. Reporting by Selena Li; Editing by Sumeet Chatterjee, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ HSBC brushes aside Hong Kong investor's Asia spin-off proposal
▼ + stars: | 2023-04-02 | by ( Selena Li | ) www.reuters.com time to read: +4 min

HONG KONG, April 3 (Reuters) - HSBC Holdings PLC (HSBA.L) on Monday pushed aside a proposal by an activist shareholder in Hong Kong to spin off its mainstay Asia business, reiterating the adverse impact on the Asia-focussed bank's cost and clients. The comment came as Ken Lui, an individual HSBC shareholder and leader of a Hong Kong-based investor group, called for the break up of the bank. The Hong Kong meeting is being held ahead of HSBC's main annual general meeting in the British city of Birmingham on May 5, to discuss its 2022 results and "other matters of interest", an earlier notice shows. On Lui's demand for higher dividends, Quinn told the Hong Kong shareholders that the London-headquartered bank intended to get the payouts back to pre-COVID level as soon as possible. ($1 = 7.8499 Hong Kong dollars)Reporting by Selena Li; Editing by Sumeet Chatterjee and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: India regulator probing some Adani offshore deals for possible rule violations-sources
▼ + stars: | 2023-04-01 | by ( Jayshree P Upadhyay | ) www.reuters.com time to read: +4 min

An Adani Group spokesperson said Vinod Adani is a member of the Adani family and is part of the promoter group, but he does not hold any managerial position in any of the listed Adani entities or their subsidiaries. Vinod Adani could not be reached for comment. Hindenburg's report eroded more than $100 billion in the value of shares in Adani group of companies. India's Supreme Court asked SEBI in March to investigate the Adani Group for any lapses related to public shareholding, related party rules or regulatory disclosures. SEBI's investigation into Adani's possible 'related party' transactions with offshore entities with links to Vinod Adani has not been reported before.

☆ Alibaba restructuring to enhance decision-making, CEO says
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

[1/3] Trader works at the post where Alibaba is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 28, 2023. REUTERS/Brendan McDermidSHANGHAI/HONG KONG, March 30 (Reuters) - Alibaba Group's (9988.HK) restructuring will allow all its business units to become more agile and enhance faster decision-making and responses to market changes, the tech conglomerate's chief executive Daniel Zhang said on Thursday. The restructuring also opens up the possibility for each unit to raise funds through its own initial public offering (IPO). Some analysts say Alibaba is currently undervalued as a standalone conglomerate and a breakup would allow investors to value each business division independently. The restructuring could also better protect Alibaba shareholders from regulatory pressures, as penalties levied on one division in theory would not affect the operations of another, analysts says.

☆ Alibaba to decide on control over new business units after IPOs
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

Zhang's comments come two days after Alibaba announced its largest restructuring in the company's history, which will see it change into a holding company structure with six business units, each with their own boards and CEOs. The business units will have their own CEOs and boards, though Alibaba will retain seats on those boards in the short-term, Zhang added. Alibaba began laying the groundwork for the restructuring a few years ago, Zhang told investors during a conference call, adding the business units could pursue public listings on their own in the future. After these units go public, Alibaba "will continue to evaluate the strategic importance of these companies" and "will decide whether or not to continue to retain control," Alibaba CFO Toby Xu said on the call. Alibaba, however, will decide whether the group wants to keep strategic control of each unit after they go public, Xu said.

☆ UBS offers retention packages to Credit Suisse Asia wealth bankers -sources
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +1 min

In a town hall address in Hong Kong on Friday, Iqbal Khan, UBS's president for global wealth management, also focussed on stabilising the Credit Suisse Asia team and boosting confidence, one of the two sources said. In his address, Khan said the top performers at the Credit Suisse wealth business will get retention packages, the second source said. Spokespeople for Credit Suisse and UBS declined to comment. UBS told Credit Suisse wealth bankers in Zurich this week that it is weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, Reuters reported on Monday. Reporting by Xie Yu in Hong Kong and Scott Murdoch in Sydney; Editing by Sumeet Chatterjee, Christian Schmollinger and Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.

Its offshore debt restructuring, the country's biggest such exercise, is aimed at saving it from a disorderly collapse. The developer has $22.7 billion of offshore debt, all of which is deemed to be in default. A dollar bondholder, who was not authorised to speak to media, likened the debt restructuring plan to lending a bucket of rice to someone and being repaid with two grains a year. Evergrande said on Wednesday that additional financing of 250 billion yuan ($36.65 billion) to 300 billion yuan would be required as it resumes operations over the next three years. If Evergrande fails to push ahead with restructuring plan, the developer may have to face liquidation proceedings filed by an investor in one of its units in a Hong Kong court.

☆ China property stocks fall after Evergrande debt revamp plan
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 23 (Reuters) - China Evergrande Group's (3333.HK) long-awaited offshore debt restructuring proposals failed to address investor concerns about the property sector's prospects, sending shares of rival developers lower on Thursday. An index tracking mainland-based property developers (.HSMPI) slipped 1.1% by early morning Hong Kong time, while the broader stock benchmark (.HIS) was flat. Under the debt restructuring plan, Evergrande bondholders were given two main options. "I think its too early to speculate that this could show that the worst is over for Evergrande," he added. Evergrande said on Wednesday that additional financing of 250 billion yuan ($36.55 billion) to 300 billion yuan would be required for its business as it resumes operations over the next three years.

☆ Asia banks may face difficulty bolstering capital via AT1s - Citi
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

The challenge will be particularly acute for a large number of smaller banks in Asia more reliant on AT1s compared with Western peers due to tighter regulatory liquidity requirements. AT1 bonds, which can be converted to equity, rank higher than shares in the capital structure of a bank. The write-down to zero at Credit Suisse will produce the largest loss in the $275 billion AT1 market to date. Citi said in its note it expected the Credit Suisse fallout to trigger re-pricing of AT1 across Asian banks' capital structures. "Regulators may tighten capital and liquidity requirements, which may impact smaller banks more," Citi said in the research note.

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