APAC Insider February

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APAC Insider Magazine / February 2016

Aussies looking to leave the UK in their droves amid proposed visa changes

China secures billion dollar deal yet again buys out the German group KraussMaffei

Magpie Strengthens Presence in China

Personal information app secures deals with two of China’s Big Four banks.

COAMI, COS-Capital & KKR explore opportunities in China Partners establish new platform to focus on credit and distressed opportunities in China.

APAC Insider Magazine / February 2016

Editor’sNote Welcome to the February issue of APAC Insider.

As we enter an exciting New Year, we invite Wilson Fung from House of Wealth to provide us with a unique insight into the firm’s work and the exciting expansions it has planned for 2016.

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Many firms are contemplating exciting expansions this year, and we profile the latest alliance between COAMI, COS-Capital and KKR and its exciting plans to move into China. Technology firm Magpie is also keen to strengthen its position in the country, which it has begun by announcing a new deal with two of China’s top four banks.

These announcements are backed by new data from Intralinks which shows strong early stage M&A figures in China, despite the recent market crisis.

China is not the only country in the region experiencing new developments, as HKNet announces that it is expanding its technological capabilities into Korea, offering interesting new developments for the industry in the region.

Although for many years Asia has been the focus of intense European interest the tables are now turning as the APAC region turns its gaze towards Europe, with China’s National Chemical Corporation recently announcing its expansion into Germany by acquiring KraussMaffei.

We hope you enjoy this issue.

Photo: Investment Firms Lured by Singapore / Page 40

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Contents 4. News

Features 10. Aussies looking to leave the UK in their droves amid proposed visa changes 12. Dragon at the doorstep in Germany?

14. COAMI, COS-Capital and KKR to Explore Opportunities in China 16. Award for Excellence in Property Tax Advice - Accountant 18. Early-Stage M&A Bounces Back in Asia Despite China Market Crisis Asian Trade Steering International Shipping Market 20. Magpie Strengthens Presence in China 22. India’s yes bank signs MoU with London stock exchange group to collaborate on debt and equity issuance

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APAC Insider Magazine / February 2016

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APSCo Appoints Head of APSCo Asia

The Association of Professional Staffing Companies (APSCo) has appointed Laletha Nithiyanandan as head of APSCo Asia.

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Laletha joins APSCo with over 30 years of experience in the talent management profession, and an extensive understanding of the recruitment arena in the Asia Pacific Region. She has previously worked in Managing Director and Executive Advisor roles at a number of executive search consultancies in the region.

Commenting on her new role, Laletha said “I’m extremely excited to bring my skills to APSCo, I feel as though my experience in the vibrant Asian recruitment market will allow to actively support its members, and tap into the thoughts and concerns of senior recruitment professionals and add real value to our service.”

Ann Swain, Chief Executive of APSCo said of the appointment “I am delighted to have Laletha join our team, she will be an incredible asset to APSCo Asia. We now have a growing membership base across the Asia Pacific region and Laletha has a tremendous wealth of knowledge and over 30 years of experience to offer. Her sustained commitment to the HR profession will ensure that our members continue to receive an outstanding service as our presence in the Asian market continues to develop.”

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Cresa Continues Global Expansion with First Offices in Australia

Cresa, the world’s largest commercial real estate firm specializing in tenant/occupier representation, has announced that it is continuing its aggressive international growth with the opening of Cresa Australia, which has offices in Perth and Sydney and market coverage across the country.

Cresa Australia, formerly LPC Australia, is the leading independent corporate real estate advisory firm in the country that exclusively represents tenants and other space occupiers.

Established in 1994, its services include transaction management, lease administration and fit-out project delivery.

“This is one of Cresa’s most significant international expansions to date,” said Richard Rhodes, Cresa CEO. “Cresa Australia has a deep and diverse client roster and is the largest, most well-established, independent tenant advisory firm in Australia. They founded the tenant-rep model in Australia, so this is a great opportunity for us to partner with like-minded professionals and further our objective, conflict-free, integrated services model.”

Cresa Australia’s client base comes from a range of industries and professions, including banking/ financial services, legal, insurance, information technology, government and tourism/travel.

Rhodes said that joining forces with the new offices will allow Cresa to expand its service lines into new sectors such as oil and gas.

According to Geoffrey Learmonth, managing principal based in Cresa Australia’s Sydney office, “This is a very exciting and mutually beneficial partnership of firms that share the same values.

While we will help Cresa expand for the first time in this country, we are presented with additional resources and the chance to service clients outside of Australia.”

Recently, Cresa opened global offices in Budapest, Argentina, Hong Kong, the Netherlands, and Belgium. Cresa Australia joins the firm’s other international locations in over 75 markets, including Canada, in addition to over 60 offices in the United States. Last year, Cresa completed over 100 assignments in more than 25 countries outside North America. Projects included transactions, project management, portfolio management, lease administration, and strategic planning.

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APAC Insider Magazine / February 2016

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Marc Desmidt to Join Point72 Asset Management as Chief Executive Officer for Asia-Pacific Region

Marc Desmidt has been named Chief Executive Officer for the Asia-Pacific region at Point72 Asset Management.

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In this newly created role, Mr. Desmidt will oversee the operations of the Firm’s offices in Hong Kong, Japan, and Singapore and will drive Point72’s strategic objectives throughout the region.

Seiji Onoe, based in Tokyo, will continue to lead the portfolio managers that focus on the Japan Sector and Howard Man, based in Hong Kong, will continue to lead all other investment teams in Asia, both of whom will report to Mr. Desmidt.

“Marc has spent a quarter century investing, managing and leading in Asia in two different markets,” Point72 President Doug Haynes said. “That gives him the acumen we need as we look to deepen our Asian relationships and reflects the importance we place on our Asia business.”

Mr. Desmidt joins Point72 from BlackRock where he served in Hong Kong as Head of Strategic Product Management in Asia-Pacific, responsible for the direction and execution of BlackRock’s product suite across all asset classes.

Mr. Desmidt previously worked in several senior roles at BlackRock, most recently as its Head of Alpha

Strategies, managing more than 100 employees across multiple teams and countries. While in that role, Mr. Desmidt was the lead manager on the Japan Value Fund and the Blackrock Global Fund, growing Asian fundamental equity AUM from $2 billion USD to $8 billion USD. Mr. Desmidt had been with Blackrock since 1991, including his time at legacy business Merrill Lynch Investment Managers, where he was Managing Director and Head of Investment, based in their Tokyo office.

Mr. Desmidt earned his BA from the University of Cape Town and his MS from the University of Oxford.

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MetLife Hong Kong Celebrates 18% YOY Business Growth

MetLife Limited (MetLife Hong Kong)*, a wholly-owned subsidiary of MetLife, Inc., the #1 U.S. life insurer^, has announced the latest updates of its business progress and achievements in 2015, and shared its business plan for the year ahead with a focus on expanding its successful agency and brokerage businesses.

Last year witnessed many historic milestones for MetLife Hong Kong. Most recently, MetLife Hong Kong received an A rating from Standard & Poor’s, scored 22 industry and marketing awards including Company of the Year (Insurance) at the BENCHMARK Wealth Management Awards 2015, and achieved an 18% year-over-year business growth^^ with the value of new business margin doubled^^. In addition to business growth, MetLife Hong Kong built its agency force to over 500 agents within the year – exceeding its first-year target, setting MetLife Hong Kong on track to reach its three-year goal of 1,500 agents.

With a solid foundation set, MetLife Hong Kong seeks to expand on last year’s momentum via three key objectives highlighted today at its 2016 business strategy address: 1.

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Continue to provide innovative products and the highest quality customer service; Expand its high-net-worth and mid-affluent segment offerings; and Grow its agency and brokerage businesses, following on last year’s success.

Mr. Lennard Yong, Chief Executive Officer of MetLife Hong Kong, said, “We are extremely proud of our accomplishments from last year, but our work in Hong Kong is far from done. Our mission is to become one of the leading life insurers in Hong Kong, and in order to realize this ambition, we will diligently set forth to achieve our year-ahead business objectives. In tandem with our ongoing commitment to pursuing product and service excellence, our primary focus this year is to expand

our brokerage business and to continue scaling our agency force. In particular, we view the high-networth and mid-affluent demographics as emerging segments which can benefit greatly from our diverse portfolio of innovative products and services.”

MetLife Hong Kong’s brokerage business has been buoyed by increased regional demand for USDdenominated life insurance products amid volatile global markets, strong investment strategies and capabilities, and the financial strength of MetLife Hong Kong, which has recently obtained an A rating from Standard and Poor’s. MetLife Hong Kong’s award-winning USD universal life insurance products, which provide customers with the flexibility to focus on the policy’s cash value growth, have been widely acclaimed by the high-net-worth customer base for its ability to ensure broad protection to fill the gaps in estate and succession planning.

Regarding its growing agency force, MetLife Hong Kong’s goal of recruiting 1,500 agents from 2015 to 2017 has been supported by recruitment programs like “Go Goal Life” - a new and unique recruitment campaign that aims to attract Generation Y talent.

As a result, its agency force has been able to enlist over 500 agents to meet its first-year objective in a highly competitive insurance industry.

“I am confident that through this vision for 2016 we will take one big step towards realizing our mission in Hong Kong. We have the talent, the passion, and the expertise to bring us to new heights in this city, and I look forward to being part of this journey,” concluded Mr. Yong.

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APAC Insider Magazine / February 2016

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TNS Expands Network in South Korea with New Seoul POP

Trading on the Korean financial markets has become easier and more efficient today after Transaction Network Services (TNS) officially opened its new point-of-presence (POP) in the heart of the country’s business area.

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Located in Yeouido, Seoul, TNS’ new POP strengthens its extensive global network and provides TNS’ financial community of interest with low latency connectivity and colocation services.

Alex Walker, Executive Vice President and Managing Director of TNS’ Financial Services Division, said: “Korea is a strategically important location within the Asian financial markets as well as globally. Our new investment in this POP, our third in the country, underlines our commitment to delivering high speed, secure and resilient connectivity to Korean firms as well as those overseas organizations wishing to enter the market.”

The news means TNS’ 1,900-strong financial community of interest is now supported by more than 125 POPs globally. On-net TNS customers can establish a connection to the new Korean POP in just a few days.

Mr Walker added: “Our Yeouido POP helps us deliver the lowest latency possible for our clients and gives us the ability to offer fully-managed co-location services in Korea. The benefits of colocation are widely recognized and particularly important when financial market participants are seeking to establish a presence in the diverse and wide-spread Asian region.”

With over two decades of heritage, TNS’ network is optimized for electronic securities trading. It has no single point of failure across its core and, via one highly secure low latency connection into TNS, it provides a variety of resilient physical connections and unlimited cross-connects.

Mr Walker said: “We have provided colocation services in many countries for more than 10 years now and have an exceptional appreciation of the needs of the financial markets. Our experienced team manages the entire process from initial installation through to operational service, enabling organizations to establish close proximity to trading venues without having to enter into complex contracts with data center providers, establish racking or stacking space or install cabling, for example.”

TNS’ robust secure network is relied on by the global financial markets for mission-critical connectivity to multiple diverse trading partners, including those in emerging markets across the Americas, Asia and Europe. TNS brings together an extensive global financial community of interest, including many of the world’s most prominent and influential buy and sell-side institutions, market data and software vendors, exchanges and alternative trading venues.

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A.M. Best Upgrades Ratings of South China Insurance Co., Ltd.

A.M. Best has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and the issuer credit rating to “a” from “a-” of South China Insurance Co., Ltd. (South China Insurance) (Taiwan). The outlook for both ratings has been revised to stable from positive.

The rating upgrades reflect South China Insurance’s sound risk-adjusted capitalization, favourable track record in underwriting and its diversified distribution channels. Over the past five years, the company has demonstrated a consistent track record of favourable underwriting performance and an improving trend in market presence in Taiwan’s non-life insurance segment. The ratings also recognize the company’s improved risk management capability and its stabilized investment results over the past three years.

South China Insurance adopts a successful multi-channel strategy, including direct distribution, agents and brokers, as well as being a secured affiliated channel of Hua Nan Financial Holdings Co., Ltd. South China Insurance has strengthened ties with car dealers in recent years, which has enhanced growth in its voluntary motor line. This has helped the company improve its overall rank in Taiwan’s non-life market to sixth in June 2015, compared with eighth in 2009 according to the Non-Life Insurance Association of the R.O.C. These positive rating factors are partially offset by exposure to natural catastrophes within the region as business volume increased. Typhoon Soudelor in August 2015 could lead to some volatility in the company’s 2015 underwriting results. Furthermore, the competitive market conditions in Taiwan are expected to continue to challenge the company’s business growth and underwriting profitability.

Positive rating actions are unlikely in the medium term. Negative rating actions may occur if operating performance deteriorates or if there is a decline in the company’s risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.

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APAC Insider Magazine / February 2016

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Aussies looking to leave the UK in their droves amid proposed visa changes • • •

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Leading Melbourne and Perth-based migration agents report a surge in requests from Aussies who are planning to head home from the UK. New laws - set to take effect in April 2016 - will mean that non-EU workers will need to earn at least £35,000 ($70,984) a year to stay in the UK for more than six years.

Many Aussies are seeking advice on how to bring their British partners back Down Under with them.

Expert warns that Britain’s loss will ultimately be Australia’s gain, as skilled workers head back to the Southern Hemisphere.

The UK’s controversial plans to introduce a new minimum annual wage threshold for non-EU workers could backfire spectacularly, agents at leading Australian migration specialists True Blue have claimed.

According to Director Joy Hay, the company has been inundated with calls from UK-based Aussies in the past week, as they seek advice on how to secure their British partners a visa in Australia.

This spike in demand comes after the UK Government announced that, as of April 2016, any non-EU workers wishing to stay in the country for longer than six years would need to earn at least £35,000 ($70,984) a year.

The changes will impact Tier 2 visas, and the news has generated a lot of anger. A petition against the reform has already amassed 75,000 signatures, and the British Parliament is obliged to officially debate the issue if this figure surpasses the 100,000 mark.

However, many lower-paid Aussies have already given up on their ambitions of obtaining permanent residency in the UK, and are looking to move back home with their partners in tow.

Joy believes that the UK Government could come to regret its decision, as it stands to lose a wave of talented professionals who don’t quite fall on the right side of the £35,000 threshold.

“We’ve taken a lot of calls this week from Australians with British partners who now want to return Down Under,” she commented.

“This is a big deal for Australians in the UK. Many Tier 2 visa holders earn significantly less than £35,000 a year and they’re disappointed that they’ll no longer have the option to stay longer than six years.

“It’s a change that will no doubt see the UK lose thousands of skilled workers, but Britain’s loss will be Australia’s gain.”

Many Aussies who have met their loved one in the UK are concerned about being separated, but this needn’t be the case. You can find out more about Australia’s partner visa requirements here.

As a team of migration experts with years of experience, True Blue specialise in securing Australian visas for people across the world. Whether it’s an application for temporary or permanent residence, the professional and friendly team at True Blue, based in Melbourne and Perth, will be there to help every step of the way.

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APAC Insider Magazine / February 2016

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Dragon at the Doorstep in Germany?

IMD Professor Howard Yu on ChemChina acquiring Germany’s KraussMaffei

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China’s National Chemical Corporation, along with some other investors, has agreed to buy the German group KraussMaffei, a rubber and plastics machine manufacturer, for USD $1 billion in what is being billed as the largestever takeover of a German company by a Chinese buyer.

This acquisition is interestingly similar to an earlier one by Sany, the Chinese construction equipment maker, when it bought German concrete pump maker Putzmeister, which was previously the biggest German/Chinese deal.

Getting more capabilities and going international This is further proof of many Chinese companies’ quest to purchase ever more distinct capabilities and to establish an international presence.

It is not just traditional manufacturing firms like Sany, ChemChina, or earlier Lenovo, Internet companies from China such as Alibaba and Tencent have been embarking on similar overseas acquisitions, sometimes by taking a minority stake, or others through outright buy outs.

Not enough details are available yet about whether KraussMaffei was facing financial difficulties, But when Putzmeister was put up for sale in 2012, the company was indeed at a financial loss. Many of the German tech-driven organizations which are most likely to require

additional equity (from overseas or not) are often mid-size firms that are technologicallyadvanced but limited in size. Their lack of scale makes them particularly susceptible to global competition. Thus the link-up between China’s scale and Germany’s technology is more than incidental. It’s a marriage of the best of both worlds.

Success is far from guaranteed The growing size of Chinese companies is also a reflection of surging confidence and resources in the Chinese business world. However, it is worth noting that successful mergers and acquisitions have been proven through extensive research to be rare. This problem is not limited to China; it’s a worldwide business challenge. Working out a relationship is never easy after the initial honeymoon.

Many free market economists say that the country of origin among multinational corporations doesn’t matter. A government should minimize its intervention and allow capital market to make its decision, they propose. In my view this is naive at best, and can be downright dangerous at worst. As has been shown around the world, companies tend to retain their most sophisticated operations in their home countries. Intel’s research and development is in California, IBM’s is in New York, Novartis’s is in Basel, even though they all have sprawling international presence. Where one works and sleeps matters a great deal.

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From a policy-maker’s perspective, the origins of the companies operating in their countries makes a big difference to their territory’s economic trajectory.

Overcoming local skepticism When emerging market firms acquire leading players overseas, they often seek to acquire new capabilities such as research and development or marketing and distribution.

But for a successful merger to take place it is particularly important that cultural integration and knowledge transfer can occur in a very deep way. Many local Germans are probably understandably skeptical about the shift of ownership for KraussMaffei. They think the

dragon is at their doorstep so to speak, and that China is taking over their businesses.

To overcome this sentiment, ChemChina will need to display a strong sense of goodwill and eagerness to collaborate. A command and control mentality would surely back fire.

Howard Yu is Professor of Strategic Management and Innovation at IMD, where he teaches on the following programs: the EMBA, Advanced Strategic Management (ASM), Building on Talent (BOT), Breakthrough Program for Senior Executives (BPSE), Strategic Marketing in Action (SMA) and Orchestrating Winning Performance (OWP).

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APAC Insider Magazine / February 2016

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COAMI, COS-Capital and KKR to Explore Opportunities in China Partners establish new platform to focus on credit and distressed opportunities in China

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China Orient Asset Management (International) Holding Limited (“COAMI”), China Orient Summit Capital (“COS-Capital”) and KKR have announced the formation of a strategic partnership to co-invest in credit and distressed opportunities in the Chinese market and explore strategic initiatives for broader collaboration.

The investment and asset management platform will focus on opportunities in China across a range of returns, benefiting from the unique capabilities and strengths of each of the partners. The platform brings together COAMI and COS Capital’s unique combination of deal sourcing capability and China asset management expertise, and KKR’s investment experience and network around the world and in China.

Guoxing Zhong, Co-President at COAMI, said, “We believe this partnership between a stateowned enterprise, a local investment manager and an international investment firm offers investors a rare opportunity to benefit from the best practices of all three parties, and we are very much looking forward to working in partnership with KKR.” David Liu, Member, Co-Head of Asia Pacific Private Equity and Head of China at KKR, said, “We are excited to enter into this innovative new partnership with COAMI and COS-Capital, which are experienced local partners that have track records in sourcing unique opportunities and active asset management. We look forward to working as a team to leverage our resources and provide both the necessary capital and the capabilities to our portfolio.”

Edward Han, Managing Director, Head of Special Situations at COS-Capital, commented, “The new joint venture offers an opportunity to build a scaled platform to provide flexible capital solutions, particularly in the real estate sector which is facing increased macro and funding challenges. We are excited to work with KKR given their deep investing and funds management experience across real estate, distressed investing and credit.”

China’s real estate market has approximately US$3.1 trillion of outstanding debt, making up approximately 16% of the total lending market in China, predominantly in the form of commercial bank loans, trust schemes and wealth management plans, according to the People’s Bank of China (“PBOC”). Amongst the commercial banks in China, PBOC statistics show that total non-performing loans amount to over US$180 billion. According to KPMG, the majority of the collateral underpinning these non-performing loans is real estate.

COAMI, COS-Capital and KKR believe the platform will deliver long term value to their respective businesses and create attractive investment opportunities for each other and their investors.

About COAMI China Orient Asset Management (International) Holding Limited (“COAMI”) is an international business platform, wholly-owned by China Orient Asset Management Corporation (“COAMC”). Established by China’s Ministry of Finance in 1999, COAMC is one of only four licensed national asset management companies

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and wholesalers of non-performing loans (NPL) in China. As of the end of June 2015, COAMC has total assets of approximately RMB 366 billion and provides comprehensive financial services to over 8 million clients through its city offices and subsidiaries nationwide. For additional information about COAMC, please visit COAMC’s website at http://www.coamc. com.cn/.

About COS-Capital China Orient Summit Capital Co., Ltd (“COS-Capital”) is a specialized investment management platform that focuses on management of both USD and RMB investments, onshore mezzanine financing and cross-border investments. It is a joint venture established in early 2014 by COAMI and China Summit Capital. China Summit Capital was founded by a group of seasoned investment professionals with substantial experience in investment management and project

development. For additional information about COS-Capital, please visit COS-Capital’s website at http://www.cos-capital.com/.

About KKR KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at http://www.kkr.com/ and on Twitter @KKR_Co.

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APAC Insider Magazine / February 2016

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Award for Excellence in Property Tax Advice Accountant House of Wealth are an accountancy firm specialising in providing dedicated property tax advice. We speak to Wilson Fung who talks us through the firm’s dedicated to client service, and how this has helped to shape the firm’s success.

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At House of Wealth we deal with clients ranging from small business operators to medium sized property developers. Given our specialisation in the property tax industry most of our clients hold investment properties, but we also work with a range of clients providing a number of services which has provided us with a wealth of experience.

Winning this award was a real honour and proves that our hard work and commitment to customer service has paid off. Awards such as this provide our clients with the assurance that the firm is a leader in their speciality and gives prospective clients the confidence that they are selecting the right person to help with their work.

Additionally, we send our staff to external training and courses which provides them with experience and ensures that their knowledge is always up to date. So far this is year, we have already invested up to $10,000 to attend various courses and seminars.

Another key means of staying up to date with our industry is listening to our clients. As most of them are also in the property industry we are constantly hearing of new developments in that area and are frequently required to analyse the tax impact of those things, which provides us with practical knowledge of the industry.

In order to provide our clients with the best possible service we go out of our way to educate and assist them, ensuring our clients and prospective clients are given all the facts when it comes to investing in property and making sure that things are structured correctly from the initial purchase.

There are a number of challenges inherent in our work which we have sought to overcome. One of these challenges that we are facing almost daily is to reply to emails to our clients as we receive hundreds of email each day. It takes between five and thirty minutes to reply to each client’s emails, but we work hard to ensure we reply to each of them so that they always feel connected.

Additionally, we always try to ensure that our clients feel connected and supported by us. In order to achieve this we try to return their calls within a 24 hour period, and we use technology such as skype, viber, email and phone to make ourselves accessible to our clients.

Another challenge we face is that Australia’s tax system is one of the most complex of all of the OECD countries. Therefore it is important to have the right tax structures when holding investment properties or property developments.

As members of CPA Australia and Registered Tax Agents we are also required to meet a minimum amount of training per annum and we attend many course to ensure our knowledge is always current and up to date, which enables our staff to provide the best possible advice at all times.

When it comes to property investments, many investors, particularly high income investors, purchase their properties under their individual names in order to leverage the rental loss to save their personal income tax liabilities. However they don’t realise what they are saving now may result in adding a vast amount of income tax liabilities upon selling their investment

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properties. The initial structure may also prevent them from transferring the property into an SMSF later on.

Because we understand this we are able to advise our clients on having the correct structure to hold their investment properties from the initial acquisition to the disposal stage, in order to minimise their future income tax liabilities and for estate planning and asset protection purposes.

Further, we realise that anyone may find themselves in a situation where they can face litigation which cause damage to another person (e.g. recklessly cause injury to other) and be forced into bankruptcy. Therefore, we recommend our clients have forward-thinking asset protection strategies in place or structure their assets in a more protected environment.

It is this dedication to customer service and understanding their point of view which is why we are so unique and different from our competitors. We have earnt ourselves a strong reputation in the industry as speciality in property and property development tax advisor, and we work hard to maintain this.

In the future we are keen to further build our success and are currently in the process of publishing a book which will provide an insight into our work and also offer valuable advice to anyone interested in property tax. In addition it will further deliver our message to the potential property investor clients and attract more clients to our firm.

Expansion of our client base is a key feature of our future development strategy, and we have a number of advertising ideas coming up including making a video clip for Youtube and a social media campaign.

We are also planning on expand into financial planning services. We are currently in the progress of obtaining RG146 and a limited AFSL license, both of which will enable us to expand our practise and provide our customers with a greater variety of services.

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APAC Insider Magazine / February 2016

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Early-Stage M&A Bounces Back in Asia Despite China Market Crisis Early-stage mergers & acquisitions (M&A) in many Asian markets are showing strong growth when compared to the same period last year, despite the slowing Chinese economy and volatile currency and equity markets.

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This indicates that 1H 2016 will see a rise in deal announcements in different Asian markets, compared to 1H 2015. This is according to the latest Intralinks Deal Flow Predictor (DFP) report released by Intralinks Holdings, Inc. the leading global provider of software and services for managing M&A transactions.

Meanwhile, in the wider Asia-Pacific (APAC) region, Australia is suffering from negative growth, having been hit by the drop in demand in the metals and mining sector – often led by China.

The Intralinks DFP forecasts the volume of future M&A deal announcements by tracking early-stage M&A activity - M&A transactions across the world that are in the preparation stage or have reached the due diligence stage. These early-stage deals are, on average, six months away from their public announcement.

The latest Intralinks DFP data shows a bounce back in early-stage M&A activity in APAC in Q4 2015, following a sharp slowdown in Q3 2015. Taken together, the early-stage data predicts the following for M&A deal announcements over the next six months (i.e., in 1H 2016): Japan and South East Asia appear to be mostly unaffected by the market volatility and economic bad news coming from China – early-stage M&A deal activity has increased in these two regions by 55% and 11%, respectively, year-on-year, indicating that continued strong growth in M&A deal announcements can be expected in Q2 2016; North Asia and South Asia appear set for an increase in deal announcements in Q2 2016, following a flat or declining Q1 2016 – early-stage deal activity has

increased in these two regions by 21% and 14%, respectively, year-on-year; Australia, however, appears to be in trouble, with early-stage M&A activity declining by 18% year-onyear, indicating that 1H 2016 will see a fall in deal announcements compared to 1H 2015. Deal making in Australia has historically been skewed to the metals and mining sector and heavily reliant on Chinese inbound M&A activity. A combination of the steep falls in global commodities prices and a slowing Chinese economy will, we believe, contribute to a decline in Australian M&A deal announcements in 1H 2016.

Based on the latest Intralinks DFP data, in the APAC region the High Technology, Media & Entertainment, Real Estate and Healthcare sectors are expected to show the most activity in 1H 2016.

Philip Whitchelo, Vice President of Strategy & Product Marketing at Intralinks, said: “In APAC, early-stage M&A data paints a mixed picture with some regions and countries seemingly unaffected by the economic slowdown in China and volatility. Japan and South East Asia appear to be best placed to increase M&A deal announcements in 1H 2016, whereas, Australia in particular, appears to have been hit by the slowing Chinese economy and its reduced demand for commodities. However, we would argue that when looking at emerging markets such as APAC, investors will have to reject short-term thinking and, instead, be willing to take a long-term view if they are to ensure success. We could see evidence of this in 1H 2016 as companies look to acquire assets by taking advantage of valuation opportunities.”

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Other DFP regional findings include: North America (NA) – 5.4% year-on-year growth. A modest increase in M&A activity is expected in the first half of 2016 as a result of the Federal Reserve Bank taking a cautious approach to further interest rate rises over the course of this year, continued steady US economic growth, lower raw material and energy costs due to low oil prices and a stronger dollar.

Europe, the Middle East and Africa (EMEA) - 11% year-on-year growth in early-stage M&A activity, making EMEA the highest growing region. Geo-political concerns largely have not affected M&A in the region.

Latin America (LATAM) – 7.4% growth indicating a renewed interest in the region from dealmakers, even with the dire economic projections for Brazil.

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APAC Insider Magazine / February 2016

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Magpie Strengthens Presence in China Personal information app secures deals with two of China’s Big Four banks

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Magpie, the business that aims to help people successfully navigate the increasingly complex digital world, today announced that it has secured deals with two of China’s biggest banks to roll out its Smart Wallet services.

The deals are part of a programme intended to extend Magpie’s services across the two banks and their respective customers. Both will initially have access to Smart Wallet – one of Magpie’s apps - with the option to add on further Magpie products and roll out availability to a larger number of the bank’s customers.

Magpie’s Smart Wallet helps customers keep an eye on their wallet using a tech tracker that prevents the loss of your wallet by sounding an alarm when your phone and wallet are separated.

In the event that your wallet is lost or stolen, Smart Wallet also facilitates cancelling cards from any bank straight from your phone. All of these services can be managed via the ‘Personal Information Bank’ - a secure store of personal information that lets a customer share their information between apps, choose what is shared and understand how it is used.

Mainland China is widely considered to be at the forefront of financial innovation in the global banking sector, with around 390 million Chinese people already signed up to use mobile banking in a market of 1.3 billion, according to data from Accenture. This represents 40 per cent of the people worldwide who bank by phone.

Stephen Kennedy, CEO of Magpie, commented: “There is a digital revolution underway in China

that is changing the way people manage their finances. Chinese consumers don’t only want but expect to be able to manage their money from their smart device. The big banks have had a challenge developing innovative technology quickly enough to compete with nimbler players in the sector.

That’s why Magpie is thrilled to be partnering with two of China’s largest banks to provide a product like Smart Wallet which will transform their customers’ daily banking experience.”

Magpie helps to reduce hassle in people’s lives by using digital services, apps and Smart-tech to put them in control of many aspects of daily life such as travel, money, health, vehicle admin, personal safety and more. In this increasingly complex digital world, Magpie offers a one stop shop, aggregating a plethora of personal information and profiles into one easy to use app.

From the palm of their hand, a customer can now take control of their digital personal information and use it for their own benefit, in a completely secure environment.

Magpie offers every day, useful apps that do things like locate lost keys and wallets, order replacement credit cards and even keep track of a child’s location.

The firm’s Smart Wallet helps a customer keep track of their money by aggregating all of their financial accounts in one place with one authentication.

This smart tech tracker for wallets, purses, handbags, keys and other valuable items has

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full GPS location functionality and can also work in reverse, setting off an alarm if a customer’s phone is separated from them for example.

Smart Wallet also includes the best mobile security on the market for android users to protect the handset from viruses and spyware.

A customer can manage all of these services via their ‘Personal Information Bank’ which is a secure store of personal information that lets a customer share it between apps, choose what is shared and understand how it is used.

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APAC Insider Magazine / February 2016

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India’s yes bank signs MoU with London Stock Exchange Group to Collaborate on Debt and Equity Issuance

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YES BANK aims to list up to $500m Green Bond on London Stock Exchange in 2016 YES BANK to potentially raise equity capital through global depository receipt listing basis market conditions Collaboration confirms London’s position as leading international green finance centre YES BANK, India’s fifth largest private bank, today formalised the Memorandum of Understanding signed with The London Stock Exchange during Prime Minister Narendra Modi’s UK visit in November 2015, to develop bond and equity issuance, with particular focus on the relatively untapped sector of Green Infrastructure Finance.

the moment, sector limits, high street interest rates and asset-liability mismatch are the main challenges faced by the existing financing mechanisms. Therefore, a need for innovative financing mechanisms to finance projects in renewable energy and energy efficiency space has risen.

YES BANK was the first issuer of the Green Infrastructure Bonds in India. As a catalyst for Green Infrastructure finance, allowing investors to facilitate funding towards renewable and clean projects in India, YES BANK is also the first Indian Bank to have made a commitment to funding 5000 MW of renewable energy.

Speaking about the collaboration, Rana Kapoor, Founder, Managing Director & CEO, YES BANK said: “Following the historic visit of Prime Minister Narendra Modi to the UK, the YES BANK – LSEG strategic MoU presents an incredible opportunity to create mutually beneficial partnerships. YES BANK will strive to improve the access to long term overseas funds for corporations in India, through capital markets in the UK particularly towards Green Infrastructure Financing, which is high on India’s agenda. We also look forward to working with LSE in establishing London as the leading instrument for raising rupee denominated offshore capital via ‘Masala bonds’.”

As part of the agreement with LSEG, YES BANK confirmed that it plans to list a Green Bond of up to $500m on London Stock Exchange by December 2016. YES BANK will also evaluate the possibility of raising further capital in London, potentially through the listing of Global Depository Receipts (GDR) as part of its overall $1bn of equity capital raising plans, basis market conditions.

The agreement, signed by Mr. Rana Kapoor, Founder, Managing Director & CEO of YES BANK and Nikhil Rathi, CEO, LSE Plc will help strengthen the increasingly vibrant economic and financial ties between the UK and India.

Given the Indian Government’s focus on renewable energy with a target of 175 GW of additional capacity installation by 2022, it is estimated that the renewable energy sector will require significant and structured financing. At

Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, LSEG said: “London is the world’s most international financial market and has a long history working with partners in India. London Stock Exchange is a natural partner for YES BANK for their significant debt and equity issuances and as a partner for their clients. YES BANK is a leader in sustainable finance in India. Today we are honoured to welcome Mr. Rana Kapoor and his team from YES BANK to sign this important MoU which demonstrates our commitment to supporting the raising of green capital for India.”

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