South Africa's Standard Bank has swooped on a team of equity derivative specialists from Bank of China International in Hong Kong to build up an Asian equity business. "We'll be building up a broad cash equity and derivatives business for the region including Japan, China, India and Southeast Asia," said Warren Kwan, former head of equity derivatives at BOCI in Hong Kong, who is joining Standard mid-month to spearhead the initiative. Kwan, reached via his cell phone, said a team of 10-12 staff will be in place within the coming weeks.
Rivals said that while it will be difficult to break into the competitive regional market, Standard could become a notable niche player. "They have a background in emerging markets and will likely use that to their advantage," said an equity head at bulge bracket house.
The hires are part of a planned push into Asia across asset classes headed up by new management. The plan is to build on the firm's emerging market capabilities and large risk appetite (DW, 1/27). Jonathan Chung, head of global equities at Standard in Hong Kong, to whom the team will report to, did not return calls by press time. The precise scale of the firm's existing equity derivatives operation could not be determined.
Kwan noted rather than BOCI's focus on its own backyard of China and Hong Kong, Standard Bank will look at all the regional markets and will emphasize institutional clients and fund derivatives rather than retail products. "It's quite a different agenda," he added. Kwan, a veteran in the Hong Kong market, was a senior equity derivatives trader at Deutsche Bank prior to setting up an equity derivatives business for BOCI (DW, 2/4/02).
Officials at BOCI said Lu Rong, head of fixed income in Hong Kong, has added responsibility for the equity derivatives business to her remit. Lu did not respond to messages.
