Goldman Sachs has established a third-party distribution group in Hong Kong targeting the growth in private banking clients in Asia. "Goldman has traditionally focused on highly-customized products for institutional clients and our own high-net-worth unit, but there's a lot of potential for a more flow-driven business," said an official. The group will focus on offering products to private banks, across asset classes, initially in Hong Kong and Singapore, taking on established players including JPMorgan and SG Corporate & Investment Banking. The official said the firm should be able to become a top player given its capabilities in structuring cross-asset class and exotic deals.
For the effort Goldman has hired Qing Hou, v.p. in equity derivatives structuring at JPMorgan in Hong Kong, in a similar role to work alongside the sales team. Additional hires for the third-party group, which now has a staff of three, are anticipated as the business expands to other markets in the region, such as Taiwan.
Goldman has been creeping into new markets in the region to expand its derivatives business. For instance, late last year the U.S. house set up a warrants desk in Hong Kong (DW, 10/28).
