Your Source For Asian Investment Information
EMC Corporation is a leading IT storage and hardware solutions company that deals with ‘Big Data’, or cloud computing and software services.
The Big Data market is growing rapidly, and is expanding especially in the Asia-Pacific region. Rico Hizon of Asia Business Reports recently discussed the industry with EMC’s Steven Leonard.
The recent capital flow to Asia is pushing leading asset managers to hire analysts and bond traders in the region.
BlackRock Inc., for example, has made Singapore its home base for trading regional debt and currencies. Manulife Asset Management, Aberdeen Asset Management and Western Asset Management have also made plans to expand their staff and focus in the region.
BlackRock Asia-Pacific chairman Mark McCombe explained:
“Quite recently, our Asian fixed-income capability was quite underdeveloped and so the decision was made to try to build a world-class capability. The regulatory framework, the living and working environment as well as the kind of rich base of investors make Singapore a very attractive place to do business.”
China Air, China’s national flag carrier, has accepted a bond offering guaranteed by the US Export-Import-Bank, or US-Exim.
The deal, worth $135.31 million, brings into play a new capital market financing solution to airline companies in Asia-Pacific. All gains from the transaction will be put towards refinancing a financial lease structure which was used to purchase a new Boeing 777-300ER aircraft by Air China.
“We are glad to be able to further develop and explore a wider source of funding,” said Jingjing Yao of Air China’s finance department. “The notes offered us a relatively low funding cost as the coupon is the lowest when comparing to transactions with equivalent average life since the product began in October 2009.”
The notes, due in 2023, are priced at a coupon of mid-swap rate, in addition to 105bp alongside market expectations. Eight investors have placed orders, reaching a total of $142 million.
It seems if you want to go where the wealth is, China is where it’s at. Today there are over a million millionaires living there; financial growth having escalated in the last year, alongside a thriving currency. Statistics from a BCG Global Wealth Survey show an increase in China of 31 percent of millionaires to 1.11 million from the previous year, placing China “in third place for millionaire households.” In addition, in worldwide figures, China is at number 8 vis-à-vis households having assets at a value of more than $100m.
These figures however, only give part of the picture since monies earned from private businesses did not figure in the survey, nor did yachts, art, or fine wines. According to a partner at Hong Kong BCG, Tjun Tang, “this grossly underestimates true overall wealth in China.” As well, only around 5 percent of wealth is held offshore and there is a limit on the amount of products that international wealth management companies are able to offer inside the country.
Singapore isn’t a bad place to live either if you want to be bringing in the money. A staggering 15.5 percent of those living in Singapore are millionaires. Qatar came in at 8.9 percent which isn’t anything to be ashamed of either. In general, if you are anywhere in the Asia-Pacific region, the rate for growth wealth has an anticipated growth of 11.4 percent in the next four years. When compared to worldwide figures for the same time-frame, the growth rate is around half of this. Japan wasn’t included in the Asian anticipated economic growth for these years. India isn’t doing too badly either, coming in ahead of Canada with its 190,000 millionaires. Things are going to be getting even better for India too, with an anticipated wealth increase of 14 percent per year over the next five years alongside China’s 18 percent. But China seems to look good no matter which way you turn, as, according to the Bloomberg Economic Momentum Index for Developing Asia, it ranks “first among 22 emerging Asian economies as the country most likely to maintain steady and rapid growth over the next five years.