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Business Times
08-05-2025
- Business
- Business Times
Asian banks see big boost to wealth business as currencies rally
[HONG KONG, SINGAPORE] A sharp rally in Asian currencies is set to boost demand for wealth and forex products as clients seek alternatives to US dollar-denominated assets and demand for hedging grows amid trade tariff uncertainties, bankers and analysts say. The rally in the currencies since last week, starting with the Taiwan US dollar and spreading outwards to those of China, Hong Kong, Malaysia, Singapore and South Korea, sounds a warning for the greenback, and is seen as an 'Asian crisis in reverse'. 'Most of our clients are Asian, so if their own currency is growing, that gives them more purchasing power for wealth management products,' Tan Su Shan, chief executive of Singapore's biggest bank DBS Group, said on Thursday (May 8). A strong Singapore US dollar would help bring a 'pool of wealth' into the leading global wealth management hub said Leong Yung Chee, the chief financial officer of United Overseas Bank (UOB). Singapore's currency has risen more than 4 per cent since US President Donald Trump hiked tariffs on Apr 2. 'We hope to benefit from that in terms of the wealth management of some businesses that we do for retail clients,' Leong said, during the bank's earnings briefing on Wednesday. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The expectations underscore how President Donald Trump's trade policies are pushing investors out of US assets and moving their money into Asia, amid growing questions about the status of the greenback as a safe haven. A weaker US dollar is expected to cloud demand for popular US fixed-income assets among wealth management clients in Asia, who may now be more open to investing in local currency denominated assets, analysts said. The return of assets to Asia will further bolster the allure of the region as a leading global wealth hub. Between 2025 and 2028, Asia is set to account for nearly half of all new high-net-worth individuals, or those with more than US$10 million in assets, according to Knight Frank's 2025 Wealth Report issued in March. The Asian currency swings have not yet hugely influenced investor sentiment, said Morningstar senior analyst Michael Makdad. However, over the long term, currency trends could affect flows as investments are allocated out of US assets. In Taiwan, a substantial portion of household financial assets has traditionally been allocated to life insurance products that invest heavily in US dollar assets, and a leap of 8 per cent in its currency within two days sent tremor across the sector. 'If Taiwanese life insurers struggle to generate attractive returns from US fixed-income investments, it may open the door for banks to offer more alternative wealth management solutions instead,' Makdad said. 'Tailwind and headwinds' Chinese exporters have accumulated a substantial amount of money in US-US dollar-denominated assets, previously on the expectation of the yuan getting weaker, said Christopher Beddor, deputy China research director of Gavekal Dragonomics. If currency expectations shift and the interest-rate gap narrows, there could be 'a quite meaningful amount of money suddenly flowing into yuan-denominated Chinese bank accounts', he said. 'We're not there yet, but it's in the back of the mind for many investors.' The heightened volatility in currency markets is also expected to drive demand for regional banks' forex services, bankers said, though local clients' exports made less competitive by stronger currencies is a concern. 'They will provide both tailwind and headwinds,' said DBS's Tan. 'A stronger currency does affect their ability to export. It will affect their cost curves as well, and so the impact will depend on whether you're a net exporter or importer.' In Japan, banks may benefit from corporate clients looking beyond usual hedging tools to reduce foreign exchange risks. Japanese firms have generally gone for the simplest hedging strategy – selling US dollars and buying yen – but the urgency of the tariff situation is prompting them to consider other derivatives, said Noriaki Masuda, deputy manager in the transaction banking department of Mitsubishi UFJ Bank. Company profitability will be affected when exchange rates fluctuate sharply, Masuda said, adding, 'There may be cases where companies will be forced to restructure business distribution or raise prices.' REUTERS
Mint
08-05-2025
- Business
- Mint
Asian banks see big boost to wealth business as currencies rally
Asian currency rally boosts demand for wealth, forex products Trump's tariffs push investors from U.S. assets to Asia Currency volatility drives demand for Asia banks' forex services By Selena Li, Yantoultra Ngui and Anton Bridge HONG KONG/SINGAPORE, May 8 (Reuters) - A sharp rally in Asian currencies is set to boost demand for wealth and forex products as clients seek alternatives to U.S. dollar-denominated assets and demand for hedging grows amid trade tariff uncertainties, bankers and analysts say. The rally in the currencies since last week, starting with the Taiwan dollar and spreading outwards to those of China, Hong Kong, Malaysia, Singapore and South Korea, sounds a warning for the greenback, and is seen as an "Asian crisis in reverse". "Most of our clients are Asian, so if their own currency is growing, that gives them more purchasing power for wealth management products," Tan Su Shan, chief executive of Singapore's biggest bank DBS Group, said on Thursday. A strong Singapore dollar would help bring a "pool of wealth" into the leading global wealth management hub said Leong Yung Chee, the chief financial officer of its United Overseas Bank or UOB. Singapore's currency has risen more than 4% since U.S. President Donald Trump hiked tariffs on April 2. "We hope to benefit from that in terms of the wealth management of some businesses that we do for retail clients," Leong said, during the bank's earnings briefing on Wednesday. The expectations underscore how President Donald Trump's trade policies are pushing investors out of U.S. assets and moving their money into Asia, amid growing questions about the status of the greenback as a safe haven. A weaker dollar is expected to cloud demand for popular U.S. fixed-income assets among wealth management clients in Asia, who may now be more open to investing in local currency denominated assets, analysts said. The return of assets to Asia will further bolster the allure of the region as a leading global wealth hub. Between 2025 and 2028, Asia is set to account for nearly half of all new high-net-worth individuals, or those with more than $10 million in assets, according to Knight Frank's 2025 Wealth Report issued in March. The Asian currency swings have not yet hugely influenced investor sentiment, said Morningstar senior analyst Michael Makdad. However, over the long term, currency trends could affect flows as investments are allocated out of U.S. assets. In Taiwan, a substantial portion of household financial assets has traditionally been allocated to life insurance products that invest heavily in dollar assets, and a leap of 8% in its currency within two days sent tremor across the sector. "If Taiwanese life insurers struggle to generate attractive returns from U.S. fixed-income investments, it may open the door for banks to offer more alternative wealth management solutions instead," Makdad said. Chinese exporters have accumulated a substantial amount of money in US-dollar-denominated assets, previously on the expectation of the yuan getting weaker, said Christopher Beddor, deputy China research director of Gavekal Dragonomics. If currency expectations shift and the interest-rate gap narrows, there could be "a quite meaningful amount of money suddenly flowing into yuan-denominated Chinese bank accounts", he said. "We're not there yet, but it's in the back of the mind for many investors." The heightened volatility in currency markets is also expected to drive demand for regional banks' forex services, bankers said, though local clients' exports made less competitive by stronger currencies is a concern. "They will provide both tailwind and headwinds," said DBS's Tan. "A stronger currency does affect their ability to export. It will affect their cost curves as well, and so the impact will depend on whether you're a net exporter or importer." In Japan, banks may benefit from corporate clients looking beyond usual hedging tools to reduce foreign exchange risks. Japanese firms have generally gone for the simplest hedging strategy - selling dollars and buying yen - but the urgency of the tariff situation is prompting them to consider other derivatives, said Noriaki Masuda, deputy manager in the transaction banking department of Mitsubishi UFJ Bank. Company profitability will be affected when exchange rates fluctuate sharply, Masuda said, adding, "There may be cases where companies will be forced to restructure business distribution or raise prices." (Reporting by Selena Li in Hong Kong, Yantoultra Ngui in Singapore, Anton Bridge and Miho Uranaka in Tokyo, Ziyi Tang in Beijing; Editing by Sumeet Chatterjee and Clarence Fernandez)
Reuters
08-05-2025
- Business
- Reuters
Asian banks see big boost to wealth business as currencies rally
HONG KONG/SINGAPORE, May 8 (Reuters) - A sharp rally in Asian currencies is set to boost demand for wealth and forex products as clients seek alternatives to U.S. dollar-denominated assets and demand for hedging grows amid trade tariff uncertainties, bankers and analysts say. The rally in the currencies since last week, starting with the Taiwan dollar and spreading outwards to those of China, Hong Kong, Malaysia, Singapore and South Korea, sounds a warning for the greenback, and is seen as an "Asian crisis in reverse". "Most of our clients are Asian, so if their own currency is growing, that gives them more purchasing power for wealth management products," Tan Su Shan, chief executive of Singapore's biggest bank DBS Group ( opens new tab, said on Thursday. A strong Singapore dollar would help bring a "pool of wealth" into the leading global wealth management hub said Leong Yung Chee, the chief financial officer of its United Overseas Bank or UOB ( opens new tab. Singapore's currency has risen more than 4% since U.S. President Donald Trump hiked tariffs on April 2. "We hope to benefit from that in terms of the wealth management of some businesses that we do for retail clients," Leong said, during the bank's earnings briefing on Wednesday. The expectations underscore how President Donald Trump's trade policies are pushing investors out of U.S. assets and moving their money into Asia, amid growing questions about the status of the greenback as a safe haven. A weaker dollar is expected to cloud demand for popular U.S. fixed-income assets among wealth management clients in Asia, who may now be more open to investing in local currency denominated assets, analysts said. The return of assets to Asia will further bolster the allure of the region as a leading global wealth hub. Between 2025 and 2028, Asia is set to account for nearly half of all new high-net-worth individuals, or those with more than $10 million in assets, according to Knight Frank's 2025 Wealth Report issued in March. The Asian currency swings have not yet hugely influenced investor sentiment, said Morningstar senior analyst Michael Makdad. However, over the long term, currency trends could affect flows as investments are allocated out of U.S. assets. In Taiwan, a substantial portion of household financial assets has traditionally been allocated to life insurance products that invest heavily in dollar assets, and a leap of 8% in its currency within two days sent tremor across the sector. "If Taiwanese life insurers struggle to generate attractive returns from U.S. fixed-income investments, it may open the door for banks to offer more alternative wealth management solutions instead," Makdad said. Chinese exporters have accumulated a substantial amount of money in US-dollar-denominated assets, previously on the expectation of the yuan getting weaker, said Christopher Beddor, deputy China research director of Gavekal Dragonomics. If currency expectations shift and the interest-rate gap narrows, there could be "a quite meaningful amount of money suddenly flowing into yuan-denominated Chinese bank accounts", he said. "We're not there yet, but it's in the back of the mind for many investors." The heightened volatility in currency markets is also expected to drive demand for regional banks' forex services, bankers said, though local clients' exports made less competitive by stronger currencies is a concern. "They will provide both tailwind and headwinds," said DBS's Tan. "A stronger currency does affect their ability to export. It will affect their cost curves as well, and so the impact will depend on whether you're a net exporter or importer." In Japan, banks may benefit from corporate clients looking beyond usual hedging tools to reduce foreign exchange risks. Japanese firms have generally gone for the simplest hedging strategy - selling dollars and buying yen - but the urgency of the tariff situation is prompting them to consider other derivatives, said Noriaki Masuda, deputy manager in the transaction banking department of Mitsubishi UFJ Bank. Company profitability will be affected when exchange rates fluctuate sharply, Masuda said, adding, "There may be cases where companies will be forced to restructure business distribution or raise prices."
Yahoo
08-05-2025
- Business
- Yahoo
Asian banks see big boost to wealth business as currencies rally
By Selena Li, Yantoultra Ngui and Anton Bridge HONG KONG/SINGAPORE (Reuters) -A sharp rally in Asian currencies is set to boost demand for wealth and forex products as clients seek alternatives to U.S. dollar-denominated assets and demand for hedging grows amid trade tariff uncertainties, bankers and analysts say. The rally in the currencies since last week, starting with the Taiwan dollar and spreading outwards to those of China, Hong Kong, Malaysia, Singapore and South Korea, sounds a warning for the greenback, and is seen as an "Asian crisis in reverse". "Most of our clients are Asian, so if their own currency is growing, that gives them more purchasing power for wealth management products," Tan Su Shan, chief executive of Singapore's biggest bank DBS Group, said on Thursday. A strong Singapore dollar would help bring a "pool of wealth" into the leading global wealth management hub said Leong Yung Chee, the chief financial officer of its United Overseas Bank or UOB. Singapore's currency has risen more than 4% since U.S. President Donald Trump hiked tariffs on April 2. "We hope to benefit from that in terms of the wealth management of some businesses that we do for retail clients," Leong said, during the bank's earnings briefing on Wednesday. The expectations underscore how President Donald Trump's trade policies are pushing investors out of U.S. assets and moving their money into Asia, amid growing questions about the status of the greenback as a safe haven. A weaker dollar is expected to cloud demand for popular U.S. fixed-income assets among wealth management clients in Asia, who may now be more open to investing in local currency denominated assets, analysts said. The return of assets to Asia will further bolster the allure of the region as a leading global wealth hub. Between 2025 and 2028, Asia is set to account for nearly half of all new high-net-worth individuals, or those with more than $10 million in assets, according to Knight Frank's 2025 Wealth Report issued in March. The Asian currency swings have not yet hugely influenced investor sentiment, said Morningstar senior analyst Michael Makdad. However, over the long term, currency trends could affect flows as investments are allocated out of U.S. assets. In Taiwan, a substantial portion of household financial assets has traditionally been allocated to life insurance products that invest heavily in dollar assets, and a leap of 8% in its currency within two days sent tremor across the sector. "If Taiwanese life insurers struggle to generate attractive returns from U.S. fixed-income investments, it may open the door for banks to offer more alternative wealth management solutions instead," Makdad said. 'TAILWIND AND HEADWINDS' Chinese exporters have accumulated a substantial amount of money in US-dollar-denominated assets, previously on the expectation of the yuan getting weaker, said Christopher Beddor, deputy China research director of Gavekal Dragonomics. If currency expectations shift and the interest-rate gap narrows, there could be "a quite meaningful amount of money suddenly flowing into yuan-denominated Chinese bank accounts", he said. "We're not there yet, but it's in the back of the mind for many investors." The heightened volatility in currency markets is also expected to drive demand for regional banks' forex services, bankers said, though local clients' exports made less competitive by stronger currencies is a concern. "They will provide both tailwind and headwinds," said DBS's Tan. "A stronger currency does affect their ability to export. It will affect their cost curves as well, and so the impact will depend on whether you're a net exporter or importer." In Japan, banks may benefit from corporate clients looking beyond usual hedging tools to reduce foreign exchange risks. Japanese firms have generally gone for the simplest hedging strategy - selling dollars and buying yen - but the urgency of the tariff situation is prompting them to consider other derivatives, said Noriaki Masuda, deputy manager in the transaction banking department of Mitsubishi UFJ Bank. Company profitability will be affected when exchange rates fluctuate sharply, Masuda said, adding, "There may be cases where companies will be forced to restructure business distribution or raise prices." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
16-04-2025
- Business
- Khaleej Times
Dubai's luxury realty soars as Condor delivers Concept 7
Dubai's luxury real estate market continues to boom, with Condor Developers reinforcing its prominence by completing the handover of Condor Concept 7, a premium residential project in Jumeirah Village Circle (JVC), on schedule. The Dh200 million, 10-floor development underscores the emirate's robust property sector and Condor's reputation for timely, high-quality deliveries, as demand for upscale residences surges. Located in the heart of JVC, near Circle Mall and within 10-20 km of Dubai's iconic landmarks like Burj Khalifa and Dubai Marina, Condor Concept 7 offers 158 residential units. The project, handed over on April 15, 2025, features modern amenities tailored to affluent buyers, including a swimming pool, open cabanas, a gym, a study area, and a unique rooftop pet park. These align with Dubai's growing appetite for lifestyle-driven properties, where luxury and convenience are paramount. 'The handover of Condor Concept 7 marks another milestone in our commitment to excellence in construction, design, and timely delivery,' said Vidhyadharan Sivaprasad, chairman and CEO of Condor Developers. 'Our focus on quality and sustainability has earned us trust in Dubai's competitive market.' Dubai's real estate sector is thriving, with the luxury segment leading the charge. According to Knight Frank's 2025 Wealth Report, Dubai ranks among the top global cities for ultra-high-net-worth individuals, driving demand for premium properties. JVC, once a mid-tier community, has evolved into a sought-after destination, with average property prices rising 12 per cent year-on-year to Dh1,100 per square foot, per Property Monitor data. Realty experts said that as Dubai cements its status as a global luxury hub, Condor Concept 7's completion highlights the resilience and dynamism of the emirate's real estate sector. 'The developer's ability to deliver on time also boosts confidence in a market where delays can erode trust.' Condor Concept 7's strategic location and upscale offerings position it to capitalize on this trend. The emirate's luxury market is projected to grow by eight per cent in 2025, fuelled by foreign investment and government initiatives like the Golden Visa program, which grants long-term residency to property investors. CBRE reports that Dubai recorded Dh135 billion in real estate transactions in 2024, with off-plan sales — a key driver for developers like Condor — accounting for 60 per cent of deals. Condor's timely delivery of Concept 7 strengthens its appeal to investors seeking reliability amid global economic uncertainties. Condor Developers, a 40-year veteran of Dubai's real estate scene, has built a strong portfolio with projects like Condor Castle in JVC and Marina Star in Dubai Marina, both delivered on time. 'Our track record reflects our dedication to responsible development,' Sivaprasad noted. The company is currently advancing two projects: Condor Sonate Residences in Jumeirah Village Triangle (JVT) and Condor Golf Links 18 at Dubai Sports City, both progressing as planned. Looking ahead, Condor is doubling down on Dubai's growth potential, with plans to develop projects worth Dh2.5 billion by 2027. Upcoming developments in prime areas like Dubai Islands and Al Majan signal the developer's ambition to cater to the luxury market's evolving demands. Dubai Islands, a waterfront destination, is expected to attract high-end buyers, with villa prices starting at Dh5 million, according to Savills. Condor's emphasis on sustainability — evident in Concept 7's energy-efficient design and quality materials — resonates with Dubai's push for green buildings under the Dubai 2040 Urban Master Plan. This focus enhances the project's long-term value, appealing to environmentally conscious investors. The developer's ability to deliver on time also boosts confidence in a market where delays can erode trust.
