Standard Chartered and HSBC split top honours in Asset Benchmark Research’s survey of Asian local currency bond markets, the most extensive annual survey of the views of institutional investors. This year's survey drew the participation of over 300 investors that have assets under management equivalent to US$704 billion and a secondary market turnover of US$650 billion. These investors are active in eleven Asian currency bond markets: China (onshore and offshore Renminbi), Hong Kong, Indonesia, India, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.
Standard Chartered won a victory over HSBC this year by taking first place in the secondary market for government bonds in Hong Kong, historically the HSBC stronghold. Overall, Standard Chartered increased its share of the secondary markets for government bonds across the region, ranking first in five of the ten markets surveyed: China (offshore), Hong Kong, Korea (offshore), Singapore and Thailand. Standard Chartered’s overall share for government bonds rose to 8.9% up from 8.1% in 2014, followed by HSBC (7%), Citi (6.7%) and Deutsche Bank (5.4%).
Conversely, HSBC is the clear leader in the secondary market for corporate bonds, ranking first in Hong Kong, Indonesia, Korea (offshore) and Singapore. HBSC leads with 8.8% of the market share for corporate bonds, followed by Standard Chartered (6.5%), Citi (3.9%) and Deutsche Bank (3.8%).
However, the international banks continue to lose market share to the domestic houses. In 2015, the local houses’ aggregate market share increased to 57% from 42% in 2014. The trend is more marked in corporate bonds in which domestic banks have a 61% share of the secondary market, compared to 54% in government bonds. The leading local houses in government bonds are ICICI Securities in India, Metrobank in the Philippines and KGI Securities in Taiwan. The forerunners for credit include Axis Bank in India, RHB in Malaysia, FMIC in the Philippines, KGI Securities in Taiwan and TISCO Bank in Thailand.
In the primary market, investors rate arrangers according to the number and quality of issues offered and the support given in the aftermarket. HSBC and Citi are the dominant international banks, while local houses are ranked first in China (offshore), India, Malaysia, Philippines, Thailand, Taiwan and Singapore dollar corporate bonds.
These awardees will be honoured at a gala dinner. For more information please click here.