FinanceAsia Magazine

Issue: March 2010

Moving money
This month's cover story focuses on one of the oldest banking operations in the world, hawala, which is an honour-based system of informal transfers of money through private operators. This historic banking process, mentioned in eighth century writings, can be useful for people moving funds that they don't want officials to see – money that could ultimately be used to finance illegal activities. We asked Bertil Lintner, a former correspondent for the Far Eastern Economic Review (1982-2004) and the author of 10 books on Asian politics, the Southeast Asian drug trade and organised crime in the Asia-Pacific region to write this story. To read more of his work (books, articles, academic papers) visit www.asiapacificms.com.

Elsewhere in this issue we update readers both on the debt capital markets outlook and convertible bonds forecasts; and for a lighter touch, we present CLSA's tongue-in-cheek Feng Shui Index.

In our Korea country report, we look at the likely privatisation of Woori Financial Group and possible sale of Lone Star's stake in Korea Exchange Bank, and how this might result in the emergence of a Korean megabank this year. We also update readers on how Korea wants to lead the way in post-crisis economic management.

Our Indonesia report acknowledges that the Southeast Asian nation's economy has emerged largely unscathed by the recent global economic downturn, in no small part because it is both resource rich and not an export-dependent nation. However, if politicians fail to manage their unending political in-fighting, they could be the masterminds of the undoing of their own success.

Focusing on India, we analyse the country's cash management system and, in another article, meet the nation's best-selling English-language novelist, Chetan Bhagat, who was, in a former professional incarnation, a banker.

Lara Wozniak, Editor

COVER STORY
28
How you are unwittingly financing terror
The pipeline for money sponsoring crime is right under our noses

FEATURES
24
A ringing start
Three M&A deals in the telecoms sector were announced in quick succession in India, keeping bankers busy

26
The car in front is still a Toyota
Toyota's troubles land it in front of a congressional hearing, but analysts remain upbeat on the carmaker's long-term health

34
CB issuance to be underpinned by refinancings
Why there is an increased dialogue between potential issuers and CB bankers

36
Once in a decade opportunity for credit
Morgan Stanley's Viktor Hjort on the key themes that will drive Asia's credit markets

38
Hello Tiger
CLSA's cheeky Feng Shui Index

SPECIAL REPORT, KOREA
40
Korea takes centre stage
This year Korea chairs the G20 club of industrialised nations and is keen to set a new world agenda

42
Eye on the prize
Are we going to see the creation of a Korean megabank this year?

SPECIAL REPORT, INDONESIA
46
More work for bankers
Bond issuance is likely to lead capital raising by Indonesian companies while the forecast for M&A is positive

48
A superb performance – now don't muck it up
Indonesia’s economy has emerged sparkling from the global crisis, but political infighting could make a mockery of the success

54
Slow road to payment bytes
Indian bankers embrace electronic payments but consumers remain sceptical

60
Now for the hard part
Getting investors to buy into the Vietnam story wasn't the problem, the trouble is navigating high inflation and a trade deficit

64
Awards for Achievement
Photos from the celebratory dinner

66
Playing nice
International leaders met at the Global Competitive Forum in Riyadh to discuss ways to develop sustainable competitiveness

REGULARS
6
Deal of the month
NTPC's $1.8 billion sell-down

8
Primary markets
A summary of key equity and debt deals

16
Data
Who tops this month's league tables

18
Month in Asia
Key economic and political news briefs

20
Asia in numbers
Offbeat numbers from around the region

22
Investor dialogue
Leon Goldfeld, chief investment officer of HSBC Global Asset Management

58
CFO solutions
Alexander Meerovitsch explains why solving a problem yourself is sometimes the best option

62
Structured products news
A roundup of key developments in structured products

68
People on the move
News of the latest hires and moves

69
Bigger picture
Simon Smiles of UBS explains why investing in Asia's growth story isn't easy

70
Who is
Chetan Bhagat

72
Reel lessons
The International

About FinanceAsia magazine

FinanceAsia, established in September 1996, has become one of the foremost information source for the Asian financial markets. The people who read us are:

Asian CEOs and CFOs who are interested in using the domestic and international capital markets. FinanceAsia offers them the up to date information and analysis on the latest trends.

Global asset investors who are interested in learning more about Asian companies. FinanceAsia offers them insights on these companies that can help them make their investment decisions.

Financial markets professionals from the banking, broking and legal profession. FinanceAsia offers them feature stories and news that can help them to better advise their clients.

Regulators and senior government officials. FinanceAsia offers them articles that can assist them in determining what constitutes market best practice around the region, and in setting policy.

With coverage that spans from India all the way to Australia, the magazine is a must-read for anyone with an interest in Asian regional finance. Its lively features add perspectives, and its awards are an industry benchmark.

Our regular sections include:

Primary Markets. An analysis of the key deals.
People on the Move. An overview of new hires.
The Deal of the Month. An in-depth analysis of the key transaction of the month.
Investor Dialogue. A major institutional investor discusses their investment strategy.
Who is. A look at the life and career of a regional executive.
The Structure. An analysis of a new structured product or derivative.
Industry columnists. Key commentators share their monthly perspectives.
Reel Lessons. Business advice from the movies.
Plus overviews of the major news events in each country, the hot tech news impacting Asia, gadget reviews and book reviews.

Our special features and supplements each year include:

Private Capital, the magazine that advises high-net-worth individuals on how to spend and invest their wealth.
An annual ranking of the Region's Richest 100 families.
Asia's Top 100 Banks.
An annual Asia's Best Companies Ranking.
An annual Fixed Income Research Poll.
European Borrowers Guide.
The Trade Finance Yearbook.
The Corporate Treasury Yearbook.
The Australia Guide.
Our End of Year Awards for Excellence and our mid-year Country Awards for Achievement.

February 2010	December 2009 / January 2010
November 2009	October 2009
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