Page 24 - SEPTEMBER 2017 B ISSUE

24 www.hello-philippines.com INTERNATIONAL / GLOBAL NEWS September 2017 / Fortnightly – No. 18 • UK & Europe Edition

FTER ROADS AND RAILWAYS, CHINA’S SILK
ROAD DEALMAKERS EYE FINANCIAL FIRMS
HONG KONG – After ports and The logo of insurer Allianz SE is seen on the exception in the crackdown this year— It gave no details, but bankers said never mind full ownership—are already
industrial parks, the dealmakers leading company tower at La Defense business and including, most recently, financial deals. Legend has been eyeing banks and closely monitored by overseas regulators.
China’s trillion-dollar push to build a financial district in Courbevoie near Paris, China’s outbound M&A volume targeting insurers in Southeast Asia, Europe and
modern Silk Road are turning to the France, March 2, 2016. financials has reached nearly $9 billion Hong Kong, using its healthy balance But while banks may be tough
financial sector, targeting Europe’s banks, as of last week this year, not far from $12 sheet and the halo effect of Belt and Road- targets, bankers and executives say
insurers and asset managers to tap funds transactions that have some links to billion in all of 2016, according to Thomson linked initiatives. Chinese institutions and conglomerates
and expertise. the Belt and Road program, because Reuters data. If exceeded, it would be the could instead target asset management,
the country needs to boost its financial second best year for such deals since at Better financial expertise and depth insurance or wealth managers.
Last week, sources familiar with muscle,” the banker said. But Beijing “will least the global financial crisis in 2008. will help China secure contract guarantees,
the matter said two of China’s most ensure the excesses of the past couple of financing and better insurance. China Everbright plans to allocate $1.5
acquisitive conglomerates, HNA Group years do not happen again.” The share of financial transactions in billion of its 2017 spending to the purchase
and Anbang Insurance Group, had overall outbound deal volume has also “We need those overseas financing of a fund manager, private bank or insurer
separately considered bidding for the The banker, who declined to be risen to 8.2 percent this year, higher institutions – buying them can expand overseas to help it raise cash more easily
German insurer Allianz SE. named as he was not allowed to speak than 5.7 percent in the same period last our bank assets and boost foreign firms’ and extend its presence abroad.
to the media, said his firm was currently year, while industrial deals, typically the participation in our projects abroad,”
Neither of the two made an offer, but working on several “mid-sized to large” biggest sector for outbound M&A, fell by said Huo Jianguo, vice-chairman of the China Merchants Bank has been
the talks marked a new level of ambition foreign financial takeover deals. a third. China Society for WTO Studies, under the “actively looking” for wealth management
for China: Allianz is a German stalwart, Ministry of Commerce. firms in Europe, said one person familiar
a pillar for local pensions and a global After a deal spree that saw Chinese Expanding Footprint. Earlier this with the matter, adding that not all
powerhouse with 1.9 trillion euros ($2.3 conglomerates spend billions on month, Legend – the top shareholder in “China is having a hard time attracting financial acquisitions in the near term
trillion) of assets under management. everything from landmark property to the computer maker Lenovo – agreed international institutions to get involved” may have clear Belt and Road links.
soccer clubs in a debt-fuelled M&A drive to buy a 90 percent stake in Banque in Belt and Road projects, Huo said. “If
HNA already owns a stake of just under over the past two years, Beijing has sought Internationale a Luxembourg (BIL) for that persists it will become an one-man China Minsheng Financial declined
10 percent in Deutsche Bank. to rein in some of the excesses. $1.8 billion. show, which is not sustainable.” to comment on its plans, while Haitong
International said it does not “have
Bankers, lawyers and company But Belt and Road deals have been an The deal, Legend said, was linked to Besides Legend, others eyeing any plans at the moment”. China Life,
executives say more financial deals will the Belt and Road initiative, President Xi the sector include the insurer China Legend and China Merchants Bank did not
come, led by state behemoths such as Jinping’s policy of building a modern Silk Life, China Minsheng Financial, China respond to requests for comment.
China Life and China Everbright, as well as Road to expand global trade and influence. Everbright Ltd,part of the state-owned
private firms including Legend Holdings China Everbright Group, and Haitong “Finance is definitely an encouraged
and China Minsheng Financial. “Our overseas investments will International Securities. sector under the recent Chinese outbound
continue to focus on the opportunities investment guideline,” said Christina Lee,
“The message from the regulators is that are provided by the Belt and Road They are mainly scouting for investment a partner at the law firm Baker McKenzie’s
clear—they want these companies to go national policy,” the company said, in and acquisition targets in Europe and capital markets practice in Hong Kong.
out and get access to large amount of a statement to Reuters, adding it would Asia, said bankers and lawyers.
funds and expertise,” said a financial M&A “actively invest” in other areas of financial “PRC financial institutions are mostly
adviser at a global bank, who works with services, including insurance, securities Watchdogs. Chinese companies domestically focused,” Lee said. “M&A is
Chinese regulators and companies. and financial technology. will not be expanding into the financial a fast way to gain exposure and expertise
services sector at will, of course. in the international finance scene.” n
“They would look very favorably at Acquisitions of stakes in foreign banks—
September 12, 2017, 11:00 AM

With Trump meeting, Malaysia’s PM seeks to put 1MDB scandal behind him
KUALA LUMPUR – In a room packed just this year, MACC data showed. official told Reuters, but the commission the best countries to invest in.”

with Malaysian civil servants, foreign The actions are unusual in the Southeast could not pursue it once Malaysia’s A government source said a defense

ministry secretary general Ramlan Ibrahim Asian country, where corruption is seen as attorney-general declared the case agreement was also on the table,

raised his right hand as he read out an anti- widespread. Four out of five Malaysians closed. although no details were immediately

corruption pledge. aged 18-35 cited corruption as the most Reopen case. “In a way, this available.

He was among thousands of state serious issue facing the country, according campaign is the MACC trying to show “Stinks to high heaven.” Senior

officials nationwide to take such an oath to a survey released last month by the that it is doing its job. Even if they PM Najib Razak looks on at leaders of the ruling United Malays
in the past several weeks, part of an anti- Global Shapers Community, a programme cannot secure a conviction (against their the last Merdeka Day rites in National Organisation (UMNO) are
Malaysia on August 31, 2017.

graft campaign called by Prime Minister under the World Economic Forum. targets), the MACC can show that it has fight international corruption, much to the concerned the party may suffer election

Najib Razak. But critics say the campaign ignores the done all it could to stamp out major detriment of the future of Malaysia and the losses from the string of graft scandals

“The citizens are becoming more elephant in the room: 1MDB. corruption,” said the former official, world,” Gabriel said. linked to Najib, a source aware of

informed … they ask for public service The state fund is being investigated in who declined to be identified due to the US-based Human Rights Watch (HRW) discussions within the party said.

which is more efficient, transparent at least six countries for money-laundering sensitivity of the matter. said Trump’s invitation was “particularly With Najib and the MACC’s clean-up

and fair,” Ramlan said after the event in and misappropriation of funds, including Cynthia Gabriel, director of the inappropriate”, given Najib’s use of campaign, the source said, the party

Putrajaya, the administrative capital. an alleged $681 million transfer into the Kuala Lumpur-based Center to Combat repressive laws to stifle critics. hopes to appease Malaysians frustrated

The campaign comes as Najib prepares prime minister’s personal account. Corruption and Cronyism (C4), said “There’s little doubt that Najib will with the corruption and draw back

to meet President Donald Trump in the Malaysia’s attorney-general closed the there was “enough substance” for MACC use this White House visit to burnish his foreign investors who fled as the probe

United States this week, where the Justice 1MDB probe in January 2016, and cleared to reopen the case on 1MDB. credentials going into next year’s election into 1MDB expanded.

Department and the Federal Bureau of Najib of any wrongdoing. MACC declined to comment on in Malaysia, and redouble his repression Besides diverting attention from

Investigation are pursuing investigations The US Justice Department has sought whether the commission would reopen of critics using the stamp of approval from 1MDB, critics say Najib is also using

into 1Malaysia Development Berhad (1MDB), to seize about $1.7 billion in assets allegedly its 1MDB investigation. this visit,” HRW’s deputy Asia director Phil MACC’s anti-graft campaign to target

a state fund the prime minister oversaw. bought with stolen 1MDB funds. Its lawsuits “No comment on that, we are very fair Robertson told Reuters. political opponents such as Lim Guan

Najib must also call a general election say those involved included Najib’s step- in investigating anybody here, whoever Najib has said he hopes his visit will Eng, an opposition leader who is the top

by mid-2018 although some commentators son Riza Aziz and his close associate Jho they are,” deputy chief commissioner drum up more trade and investment for elected official in Penang province. He has

have suggested he could do so this year Low. Azam Baki told reporters in Putrajaya. Malaysia. been charged with abuse of power in the

itself. In court filings last Tuesday, the FBI, Anti-corruption campaigners say “I would like to see this as a two way purchase of a bungalow.

The Malaysian Anti-Corruption which is conducting a criminal investigation, they fear Trump’s invitation to Najib to mutually beneficial partnership,” he told “You are going after all sorts of

Commission (MACC) has arrested dozens of alleged that potential witnesses in the case visit the United States may affect the reporters on Friday. “I hope the US sees offenses, but the biggest one, it stinks

top officials under the anti-graft campaign, fear for their safety and need protection. investigations in the United States. Malaysia as a reliable partner on issues to high heaven,” said Lim, the secretary-

including officers at national oil company But investigations into 1MDB in Malaysia “Territorial influence and geopolitical such as trade and investment, security general of the Democratic Action Party.

Petronas and state-controlled palm oil firm appear to have shut down. MACC had “a interests of the United States appears to partnership, counter terrorism and I also “Everyone can smell it, except you.” n

Felda. More than 600 arrests were made roomful” of files on 1MDB, a former MACC have hollowed out its commitment to hope that US companies see us as among News5-InterAksyon | September 10, 2017, 6:51 PM