Politicians will be stalking Asian economies for inefficient companies, slashing red tape and rooting out corruption in 2015, which will galvanise deal making.
In China, Premier Xi Jinping’s push to break up China’s overweening state-owned companies is gathering pace. Among the largest equity offerings in 2015 could be the IPO of government-controlled Sinopec’s retail arm.
Bankers are also expecting another run of privately owned Chinese companies to list in New York next year – inspired by Alibaba’s success and emboldened by the government’s overt blessing of private enterprise.
Private equity firms, meanwhile, are looking to invest in water purification companies as Xi wages war against pollution.
To be sure, Xi’s anti-corruption campaign will continue to dog M&A as key decision makers disappear from boardrooms but, on the bright side for bankers, it could stimulate high-yield bond issuance and rights issues.
Equity and debt deals will pick up following regime change in Indonesia, Thailand and India and as governments smooth the way for foreign investment. Investors will likely welcome higher-yielding bonds given yields will likely remain low globally.
In Japan the government’s quantitative easing will give another fillip to Japanese lending across Asia, which could help offset a likely US rate hike next year.
A knock on effect will be that Taiwan and Korean exporters will struggle to compete with a weaker yen and the Japanese export juggernaut, leading to further restructuring of conglomerates in those countries.
Slumping oil prices will help politicians in emerging Asia – a net importer of energy – lower trade deficits, tamp down inflation and keep interest rates low. This also bodes well for bond issuance.
Bold politicians in Asia next year will not be following the flock in the year of the sheep.
About FinanceAsia Magazine
Established in 1996, FinanceAsia is the leading publisher of financial news in the Asia-Pacific region. Our combination of print and online products provide the latest news, analysis and insight into Asia’s financial markets.
Published monthly from our office in Hong Kong, FinanceAsia magazine provides our readers with the latest financial trends, interviews, features and investigative reports. The publication has a readership of key decision-makers at corporations, governments, investment and commercial banks, institutional investors, asset managers, brokers, traders and financial intermediaries.
Our regular sections include:
We look at the key data behind a topical theme in Asian finance, showcased with an array of graphs and tables.
A monthly opinion column from the FinanceAsia editorial team. We provide our thoughts on a topic making the headlines.
Deal of the Month
Our regular two-page spread with its signature artwork and in-depth analysis examines the equity, debt or M&A deal that we feel has had the biggest impact on the Asian capital markets that month.
For company CEOs and CFOs, what investors think is a critical concern, and in this column we help them understand just this. Each month we speak to a Chief Investment Officer of a top fund and outline their views on corporate governance, what stocks they like and where they expect to generate the best returns.
A monthly opinion piece from a respected author or commentator on Asian business, finance or economics.
People on the Move
Here we summarise the key hires, fires and moves at the region’s banks, highlighting at least one major move each month.
We examine the major primary markets deals of the month and comment on the quality of the debt or equity transaction and the secondary market performance.
The Arts of Finance
A light-hearted look at investment opportunities surrounding the arts business in Asia.