Standard Chartered mulls more listings in Asia
Updated: 2009-06-19 06:32
By Joey Kwok(HK Edition)
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HONG KONG: Standard Chartered, the Asia-focused British lender, is seeking more listings in Asia to expand its capital pool and enlarge its market share, the bank's chief executive said yesterday.
Speaking at a press conference on the sidelines of the World Economic Forum in Seoul yesterday, Standard Chartered's chief executive Peter Sands said the bank "always look at the potential for further listings" to help build its profile in a specific country or access new pools of capital.
However, Sands added that no decision had been taken yet.
Standard Chartered, which generates two-third of its revenue from Asia, is currently listed in Hong Kong and London. Banking sources said in April that the UK lender had hired bankers for a possible listing in India.
Neeraj Swaroop, the chief executive of Standard Chartered's Indian operations, said in May that the bank was examining the possibility of listing in India, but no decision had been made.
Stock markets in Asia have seen a significant rebound since March, and Sands expects the economic recession in Asia will be shorter than in the West.
But he added that it was still too early to say that the global financial crisis is coming to an end, as some economic data have not fully recovered.
Early in 2005, Standard Chartered bought a bank in South Korea for $3.3 billion, which is now named SC First Bank.
The bank plans to launch a financial holding company by the end of June, after receiving final approval from South Korea.
Sun Hung Kai Financial Group strategist Castor Pang said Standard Chartered may consider listing in South Korea.
"The bank has earlier acquired quite a large amount of asset in South Korea," Pang said. "The economic prospect of South Korea is also better than the US and Europe."
He added that Standard Chartered's potential listings in Asia will help expand its shareholders base, which will benefit the bank's future operations.
Paul Lee, a banking analyst at Taifook Securities, said listing in Asia will help enhance the bank's reputation in the emerging markets.
"Emerging markets used to be the bank's major focus," Lee said. "HSBC, before acquiring its US operations, has earned significant profits in Asia as well."
The Asian markets relatively have more potential, compared with the deteriorating economies in the US and Europe, he added.
Shares in Standard Chartered rose 1.23 percent, or HK$1.80, to close at HK$148 in Hong Kong yesterday. The benchmark Hang Seng Index finished down 1.70 percent, or 307.94 points, at 17,776.66.
(HK Edition 06/19/2009 page3)