Congratulations to all the winners of the FinanceAsia Awards this year. Once again firms showed great innovation in a wide range of areas from business growth to digital banking to diversity, equity and inclusion (DEI).
In another tough year for financial markets, the winners, from a large pool of entrants, were the firms that managed to show resilience, creativity and investment in the future, with a close eye on protecting their balance sheets and helping clients.
A big thank to you to our judges: Dennis Chia, chief financial officer, StarHub; Douglas Arner, Kerry Holdings professor in law, University of Hong Kong; Gordon Ip, co-chief investment officer, fixed income, Value Partners; Jason Teo, head of treasury, SEA LOGOS Group; Julian Lee, executive director, finance, Hong Kong Airport Authority; Kim Man Wong, chief financial officer, HK Electric Investments; Kok Siong Ng, chief financial officer, Link REIT; Marcus Yeung, chief executive officer, SEAbridge; co-founder, match.asia; Shahrul Azman Mohd Mokhtar, vice president and group treasurer, group treasury division, FGV Holdings; Subhojit Sadhu, Partner, Cyril Amarchand Mangalas; Teresa Teague, co-founder and partner, TBB Partners; and Tony Adams, managing director, R66 Capital.
You can see photos from the Awards dinner, and also for Asia's Best Companies Poll 2024, in Hong Kong here.
NORTH ASIA
MAINLAND CHINA - DOMESTIC
BEST BROKER; BEST ECM HOUSE; BEST INVESTMENT BANK
CICC
Regardless of the volatile market environment that defined 2023, CICC again showed the quality of its broad capital markets offering in China.
CICC excelled in investment banking, taking top spot for value and market share in Dealogic’s league table of financial advisors for China domestic M&A, while ranking second for equity financing in the domestic bookrunning standings, based on data from Wind, and fourth for debt financing, also according to Wind.
Landmark M&A deals that the firm worked on in 2023 included: Air China’s acquisition of Shandong Aviation Group; Gezhouba Explosive’s spin-off from China Energy Engineering Group and restructuring with Nanling Industrial Explosive; and the private offering of China Oil & Gas Pipeline Network Group.
CICC continued to maintain a strong position in China’s domestic bond market, too. The firm increased its underwriting volume by just over 26% year on year.
Within equities, CICC’s performance in 2023 was particularly impressive. It participated in four of the top 10 A-share IPOs, including as sole bookrunner for Nexchip Semiconductor Corporation, the largest deal of its type during the year.
CICC was also involved in the A-share IPO of CSI Solar, the largest IPO on the STAR Market ever issued in Jiangsu Province, the largest IPO ever issued in Suzhou and the third largest A-share IPO in the photovoltaic new energy industry. Further, the bank successfully completed the offering for Postal Savings Bank of China, the largest A-share non-public offering since new rules on refinancing were introduced, as well as being the largest all cash-based A-share non-public offering through bookbuilding in 2023.
Meanwhile, in brokerage, CICC’s one-stop equities platform also stood out in a tough year. Although its revenue for the 12 months to end-December was down nearly 12% from a year earlier, its market share swelled to 2.3% to hit a new high against a significantly shrinking volume overall.
CICC also ranked among the industry’s best performing brokers for its coverage, product innovation and cross-border reach.
For example, by the end of 2023, its services covered over 10,000 institutional investors – increasing from more than 9,000 a year earlier. Among its clients, CICC’s coverage of domestic mutual funds rose to 89% and for local insurers it was up to 78%. It was also the first China-based securities firm to introduce foreign institutions as strategic investors to the A-share’s mainboard, STAR Market and the Growth Enterprises Market.
BEST DCM HOUSE
Bank of China
Bank of China (BOC) continued to play a leading role in the local debt capital market for both onshore and offshore issuers, with strong achievements in 2023 across a range of transactions.
During the year, for example, BOC underwrote Rmb1.39 trillion ($192 billion) worth of onshore bonds in the China Interbank Bond Market (CIBM), giving it a market share of nearly 10%, ranking second among banking underwriters.
In addition, BOC maintained its top spot in the panda bond market, with a market-leading 23% share based on underwriting 38 panda bonds valued at Rmb32.9 billion. These included landmarks such as the first panda bond from Africa and the first sustainable sovereign panda bond.
BOC also delivered a full range of green products, underwriting 103 green bonds in 2023, worth Rmb87 billion, and ranking first in CIBM with a market share of just over 15%. It acted as a market pioneer in leading the domestic market’s first batch of carbon-neutral bonds, sustainability-linked bonds and transition bonds.
Further, BOC ranked first again in 2023 in offshore China bonds, covering 50% of the market’s 134 deals.
BEST LAW FIRM
Han Kun Law Offices
Last year was busy for Han Kun Law Offices. In June, it opened a Singapore office, followed six months later by an office in New York.
This will enable the firm to build on its track record in market-leading transactions, which in 2023 included advising NIO Inc. on its $1 billion convertible bond offering, the largest issuance of its type by a Chinese overseas listed enterprise since 2022.
Han Kun also advised on the IPO and listing of J&T Express, the second largest IPO on the Hong Kong Stock Exchange in 2023 at the time.
Yet the firm’s achievements also go beyond its deals. It continues to have an active pro bono practice, as well as offers training schemes to cultivate high-level legal professionals from around the country.
BEST PRIVATE BANK
China Merchants Bank
Despite adverse factors such as an economic downturn, intensified volatility in financial markets and geopolitical tension, CMB Private Banking was able to grow both its client base – by over 8% from the previous year-end to 146,000 – and its assets under management (AUM), by more than 8% to Rmb4 trillion ($552 billion) during the same period.
These achievements reflect the bank’s focus on customer acquisition through three channels: internal transfer of existing clients, integration of wholesale and retail customers, and digital expansion via data models to directly acquire clients through mobile apps and enterprise WeChat.
CMB Private Banking has also seen the benefits of being increasingly focused on asset allocation – including the introduction of stable, low-volatility products.
A key growth area for the bank in 2023 was in family trusts and family offices, with scale increasing by 85% annually, showing an explosive growth trend.
BEST RATINGS AGENCY
CCXI
A strong brand is especially important in the credit rating industry, and CCXI – the largest player in this space in China – continued to build on its reputation in 2023 with solid growth amid its commitment to independence, objectivity and professionalism.
The firm was able to grow its client base last year to 3,390, marking an increase of nearly 4% year-on-year across a wide range of institutions – from larger financial services firms to small and medium-sized commercial banks, to small and micro enterprises – and involving all types of instruments, including traditional and green bonds, and also asset-backed securities (ABS).
Within this universe, 1,209 clients issued bonds, representing a rise of 12% year-on-year. In terms of asset securitisation, CCXI served 439 clients in 2023, giving it a market share of almost 89% for inter-bank ABS for small enterprises and nearly 50% for non-performing ABS.
MAINLAND CHINA - INTERNATIONAL
BEST BANK
HSBC
HSBC made significant strides in 2023 towards its longer-term growth ambition in mainland China, retaining this award in the process.
Ultimately, HSBC stood out as the top international bank by tier 1 capital, asset quality and net profit in mainland China last year, according to the China Banking Association. HSBC also played a prominent role among its peers in key areas, including expanding its wealth and private banking footprint, enhancing its digital capabilities through upgrading onboarding and lending journeys, supporting clients’ transition to net zero, and targeting fast-growing new economy sectors with cross-border solutions.
More specifically, the bank achieved key sustainability goals by launching a green credit fund, and leading the first sustainability-linked panda bond onshore in China.
Within wealth, the bank doubled its number of Wealth Management Connect customers year on year in the Greater Bay Area, and also acquired Citi’s local wealth business.
In wholesale banking, HSBC scored multiple “firsts” – from innovation in panda bonds to onshore securitisation issuance, to a proprietary supply chain finance platform.
BEST CORPORATE BANK - LARGE CORP & MNCS
Citi
As a bank that serves 70% of Fortune 500 companies in China, Citi showed in 2023 why it is so well-positioned to drive corporate strategy transformation.
The bank is well-versed in the needs of multinational enterprises, and last year continued to build cross-border, two-way cash pooling for many multinational companies. This included automated Renminbi cross-border payment services to support “going-out” Chinese enterprises with their daily operations of overseas businesses, while also providing inter-group financing channels for foreign invested enterprises in China.
Also in 2023, Citi China executed the first tranche of northbound trades through Swap Connect with offshore investors, promoting the onshore financial derivatives market.
In addition, the bank obtained approvals to provide custody services for Qualified Domestic Limited Partnership (QDLP) and Qualified Foreign Limited Partnership (QFLP) products, making it the first foreign bank with such custody capabilities.
Key transactions during the year included an industry-first in sustainable supply chain finance for Henkel, and API connectivity for Walmart to fully automate payment and reconciliation processes.
BEST RATINGS AGENCY
Fitch Ratings
BEST ESG RATINGS AGENCY
Sustainable Fitch
Fitch continues to be a leader in this market in multiple sectors. In particular, it commands the highest share of first-time Chinese issuers by volume and deals, with key mandates including ChinData Group and China Taiping. Fitch is also focused on proactive outreach via events, as well as investor and media activities.
A key part of the firm’s strategy is to provide industry-leading ratings and analytics to Chinese investors, issuers and bankers – and it targeted this in 2023 by striving for analytical excellence and establishing outreach programmes for all its rating stakeholders. It ended the year with a China team of around 50 analysts. With this capability, Fitch covered 443 publicly rated issuers in China last year.
In the busy China corporate and public finance sectors in 2023, Fitch-rated issuances accounted for almost 90% of the deals and volume for all types of issuers.
The firm – through its ESG-focused brand, Sustainable Fitch – is also a stand-out player in the green financing space. This is in line with its vision to be the ESG rating agency of choice for Chinese investors, issuers and bankers, offering sustainability-focused research, analysis and data for the fixed income market, to address investor concerns on how ESG impacts credits.
Sustainable Fitch’s growing presence in Asia Pacific, particularly in China, saw it triple its solicited mandates in 2023 compared with a year ago. This included issuing the first ESG entity rating for a US-listed electric vehicle charging service company in China.
Also in 2023, among the investment-grade Chinese government-owned enterprises’ offshore labeled bonds, Sustainable Fitch provided 65% of the Second-Party Opinions.
BEST INVESTMENT BANK
UBS
Across equity and debt financing, as well as M&A, for Chinese companies, UBS displayed the strength and breadth of its investment banking business by ranking second in terms of transactions by net revenue among international banks in 2023, according to Dealogic.
Notably, many were landmark transactions, supported by UBS’ integrated cross-border platform with global capabilities.
Within equity capital markets, the bank helped many Chinese companies with onshore and offshore listings to capture favourable market windows in raising funds. Key IPOs included the first Hong Kong IPO in the logistics sector in 2023, for J&T Express, and the largest Chinese American depositary receipt offering in the fintech space to complete a dual primary listing in Hong Kong - for Lufax. In M&A, meanwhile, UBS advised foreign investors and local Chinese parties across various deals.
UBS is also a forerunner in the China ESG space, setting up a dedicated team to bridge global and China-specific practices.
BEST SUSTAINABLE BANK
Crédit Agricole Corporate & Investment Bank
Crédit Agricole CIB maintained its prominence in the sustainable finance space for international institutions in China by retaining this award.
This reflects the bank’s various achievements throughout the year, which included the People’s Government of Hainan Province of the People’s Republic of China’s second green, blue and sustainability bond issuances during 2023.
Crédit Agricole CIB was also involved in the first sustainability-linked panda bond issued by a Hong Kong enterprise in mainland China, and in supporting carbon-intensive clients in their sustainability transition journeys – including the first syndicated sustainability-linked loan (SLL) in the Chinese aluminium industry, and the aircraft leasing industry’s first major SLL facility.
Beyond capital markets transactions, Crédit Agricole CIB was also involved in the launch of a first-of-its-kind ESG-linked corporate account product.Hong Kong SAR
HONG KONG SAR - DOMESTIC
BEST BANK; BIGGEST ESG IMPACT - BANKS
Bank of China (Hong Kong)
It was a stellar year for Bank of China (Hong Kong) (BOCHK), shrugging off a complex and challenging environment to achieve a year-on-year increase in net operating income of over 20% in the first three quarters of 2023.
By proactively managing its assets and liabilities to capture opportunities from rising interest rates, BOCHK was able to boost total group assets to HK$3,940 billion ($504 billion) by September 30 – an increase of 7.5% from the end of 2022. This was helped by solid growth in deposits from and advances to customers, rising by almost 6% and 3%, respectively, during the same period.
As well as various pioneering digital initiatives, a key feature of BOCHK’s success was its role in several standout sustainability-focused deals, including: the first ETF to track an ESG index with investments in the Greater Bay Area; the first Chinese local government blue and sustainability-linked offshore bonds; and a new green finance treasury solution.
The decision by BOCHK to elevate sustainability to a long-term strategic objective has started to pay off. Specifically in 2023, the bank made notable impact across environmental, social and governance areas.
In terms of green finance, BOCHK was involved in, among other transactions, the first Greater Bay Area climate transition index and ETF, the first Rmb biodiversity-themed green bonds for a local government, the issuance of offshore Rmb local government bonds in Hong Kong, and the bank’s own first green Rmb reverse repo transaction.
Socially, BOCHK continued to promote financial inclusion by providing affordable and diversified financial services to different types of people, especially disadvantaged groups, and small and medium enterprises.
Finally, the bank’s focus on upholding high standards of corporate governance to protect the interests of its shareholders, customers and employees resulted in a diverse board by the end of 2023.
BEST BANK FOR FINANCIAL INCLUSION; BEST DCM HOUSE; BEST INVESTMENT BANK; BEST PRIVATE BANK; MOST DEI PROGRESSIVE - BANKS; MOST INNOVATIVE USE OF TECHNOLOGY - BANKS
HSBC
As far as these awards go, the extent of HSBC’s achievements in the Hong Kong market in 2023 continue to be nothing short of eye-watering.
Its investment banking franchise continued to maintain a leadership position in M&A advisory, debt and equity capital markets and leveraged acquisition finance, based on Dealogic league tables for each area. This consistent ranking reflects HSBC’s strong advisory capabilities and commitment to best execution for complex and challenging transactions in both the public and private markets.
Notably in 2023, it focused a lot of effort on helping clients navigate volatile markets to fulfil strategic fundraising and recapitalisation goals. The bank also guided clients on ideas related to reinvesting their balance sheet in the elevated interest rate environment, either to capture new economy opportunities and diversify, or improve the cost of capital.
Specifically in the debt markets, HSBC ranked first in the G3 league table for Hong Kong borrowers, having led most of the transactions to command a 10.5% market share in 2023.
The bank’s leading position in the Hong Kong dollar bond market continues to be clear, leading 114 issues with a 30% market share – more than twice its closest rival.
Yet HSBC is also prominent for its delivery of all-round funding, including structuring and executing innovative sustainable financing solutions for Hong Kong issuers.
For wealthy individuals and families, too, HSBC had a standout year. Its Global Private Banking team continued to show the value on offer across investment products, banking, lending, corporate finance advice and wealth planning, securing significant growth year-on-year in net new money inflows and a steady increase in its client base.
In 2023, among other initiatives, HSBC further sharpened its client segmentation model to create a new proposition and become more tailored in its product and service delivery, as well as launched new discretionary mandates to cater for clients’ changing investment appetite, and enhanced its core digital capabilities to create a seamless client journey.
More broadly in technology, HSBC as a group further showcased its ability in 2023 to personalise the customer engagement with dynamic offers and content at right time, and through the right channel, to its 5.5 million-plus retail banking customers.
Notably, the bank developed additional digital capabilities to support the lifestyle of Millennials, fuelled by data analytics and artificial intelligence (AI), to “hyper” personalise the customer experience and journey.
This now includes personalised messages and calls-to-action for different customers based on their individual profile, refreshed in real-time by AI engines that monitor 1.3 million behavioural signals every day from digital footprints and transaction activity. As of last year, HSBC saw four out of five Millennial customers using its apps every month.
These advances have also spurred HSBC’s efforts to provide inclusive banking services to different financially vulnerable groups, and raise awareness for diversity and inclusion in Hong Kong.
For example, the bank enhanced its first-in-market simplified mobile banking app to provide digitally accessible banking services to everyone, especially the less digitally savvy. It secured over 200,000 unique customers and more than 100,000 new app activations since launch in the first quarter of the year.
Also in 2023, HSBC created a new financial literacy course for the elderly, and introduced banking support for the special education needs community. With this mindset, it’s clear to see why HSBC also stood out for taking diversity and inclusion to the next level for its workforce.
The bank sees this as a way to drive greater innovation, better identify and manage risks, enhance collaboration and improve workforce agility to reflect the customers and communities it serves. Fair and inclusive recruiting, progression of under-represented talent, building an inclusive culture, and supporting an inclusive society, are four specific areas of focus for HSBC.
Among activities to engage employees and raise awareness in 2023, HSBC took targeted actions to improve the gender balance, such as disclosing any gender pay gaps, and pursue its “Accelerating Female Leaders” programme, while implementing progressive policies to embrace diversity, such as enhanced maternity leave to 20 weeks and paternity leave to 40 days.
BEST BROKER
Everbright Securities International
By expanding its client base, achieving stable revenue streams and partnerships, and enhancing its capital market participation and positioning, Everbright left nobody in doubt about the resilience and standing of its brokerage business. It fully deserved to retain this award.
The firm was able to outperform the average daily turnover of the Hong Kong securities market, which fell by nearly 16% compared with the previous year, amid volatility and the slowdown in local IPO fundraising activity.
Everbright was also forward-thinking in terms of its commitment to diversification. This enabled it to secure revenue growth on several product lines, including overseas stocks, up 124.5%, Hong Kong stock options, up 21.7%, fixed income products, up 31.8%, and insurance, up 55.5%.
The firm ended 2023 with around 800 employees and wealth managers, managing around HK$71 billion ($9 billion) in customer assets.
HONG KONG SAR - INTERNATIONAL
BEST BANK; BEST PRIVATE BANK; BIGGEST ESG IMPACT - BANKS
DBS Bank
With a well-diversified and solid franchise in Hong Kong in 2023, DBS was able to enjoy strong profit recovery and progress in digital transformation and innovation, Greater Bay Area (GBA) expansion, sustainability and employee engagement.
Financially, it was a successful year for the bank – total income grew 13% year-on-year to a record high, driven by a 21% increase in net interest income to HK$12.6 billion ($1.6 billion). This marked the third consecutive year of double-digit growth in net profit for DBS in Hong Kong, and a three-year compound annual growth rate of 20%.
Notable digital initiatives included the roll-out of a new fund accounting system to enable customised reporting and greater staff productivity, while the bank implemented new artificial intelligence and machine learning tools.
DBS also pursued a partner strategy with several GBA banks to provide cross-border Wealth Management Connect services to local clients, leading to a four-fold increase year-on-year in customers by December 2023.
The bank also continued to stand out in 2023 for its commitment to sustainability and, in general, to making an impact. This was evident in the large number of green and sustainability-linked loans and trade financing deals it closed during the year. Highlighting the importance to the bank of ESG impact, it set up a new ESG credit risk team in early 2023 to provide leadership and expertise to further build its climate and ESG risk management capabilities.
In 2023, the bank also contributed more than 34,000 employee volunteer hours in Hong Kong, plus DBS Foundation launched a capacity building programme aimed at empowering two dozen high-potential social enterprises with ESG knowledge and business development skills.
Meanwhile, DBS Private Bank also made a splash in Hong Kong last year, posting a resilient financial performance and setting new records for customer satisfaction.
More specifically, its revenue in this unit grew by 21%, fee income by 25% and overall family office client numbers by 68%, to over 500. This resulted in assets under management (AUM) of $18.5 billion by the end of the year.
Among new developments in Hong Kong in 2023 to respond to client needs, DBS launched a private client platform to offer exclusive access to private market opportunities selected globally on the themes of decarbonisation and growth. The bank also launched four funds, focused on real estate, growth and climate change, attracting strong AUM in 2023.
BEST COMMERCIAL BANK - SMEs
OCBC Bank
OCBC was able to showcase in Hong Kong the connectivity it can offer throughout Asean and Greater China that enables it to deliver bespoke banking solutions to customers in areas such as financing, advice, trade and cash management.
This recognises the uniqueness of SMEs at different life stages, segments and industries, bolstered by advanced analytical and machine learning techniques that enable the bank to leverage data to drive customer insights related to the SME lifecycle, from business start-ups to mid-sized companies.
For example, in Hong Kong, where the SME business landscape is fast-paced and competitive, OCBC lowered barriers for new business owners, to make it easy to open a business banking account digitally within one working day without a monthly minimum balance requirement. As a result, its digital accounts grew by four times in just two months.
Last year, the bank also introduced its Emerging Enterprise Award in Hong Kong for SME businesses under 10 years old, to provide resources to help them reach their full potential.
BEST CORPORATE BANK - LARGE CORP & MNCs
Citi
Within the Citi network, this award-winning franchise delivered double-digit growth in 2023, which was particularly impressive amid volatile markets.
For example, the bank’s treasury & trade solutions and securities services businesses recorded significant growth. These units successfully captured new flows and mandates in the rising rate environment. Lending revenue also grew, with multinational clients viewing Hong Kong as a favourable financing hub.
During the year, Citi acquired clients from top tier local corporates, to global subsidiaries of multinationals, to non-bank financial institutions, to fintechs. It deepened its share of wallet through data-driven analysis on cross-product opportunities, capturing some from its China desk across capital markets, lending and flow products.
Among key transactions in 2023, Citi completed four ESG bond issuances for Hong Kong public sector clients, and led on three syndicated loan transactions for key clients.
BEST INVESTMENT BANK
UBS
As a highly regarded investment bank in Hong Kong, UBS had a particularly strong year in 2023 across its business. This was reflected in its role in landmark transactions, many of which required innovative solutions in this constantly evolving marketplace.
The bank participated in several market-defining M&A deals for NWS, CVC, Cathay Industries and AIA. It was also a repeat partner for corporates looking to tap the debt markets and a regular adviser to leading conglomerates in Hong Kong. UBS also showed the value of being able to leverage its extensive equity research and trading capabilities.
UBS also proved its value as a key advisor on landmark leveraged debt capital market transactions in Hong Kong, being a go-to non-lending bank for corporates based on its ability to deliver innovative products and one of the most experienced in ESG offerings.
BEST SUSTAINABLE BANK
Crédit Agricole Corporate & Investment Bank
As a consistently prominent dealmaker in the sustainable finance space globally, Crédit Agricole CIB didn’t disappoint in Hong Kong last year.
Among its successes, it has carved out a leadership role in the sustainable bond space as the regular lead green structuring advisor for the HKSAR Government. It was also involved in transactions that are shaping new market benchmarks, such as Hong Kong Mortgage Corporation’s HK$20 billion ($2.6 billion) jumbo social bonds issued in September.
At the same time, Crédit Agricole CIB showed its innovative side with the launch of a first-of-its-kind ESG-linked corporate savings account solution in Hong Kong, piloted with NWS Holdings.
These and other transactions highlighted the bank’s focus on achieving decarbonisation targets, which it is looking to achieve as quickly as possible after accelerating its own commitment, including defining net zero sectoral pathways for 10 key sectors in December.
CHINESE INSTITUTIONS
BEST DCM HOUSE; BEST ECM HOUSE
CICC
With a strong cross-border platform, a diversified client base and a wide range of fixed income and equities capabilities, CICC cemented its capital markets prominence in Hong Kong last year among Chinese institutions.
The bank had a successful 2023 in debt capital markets, leading 141 international bond transactions for Chinese issuers, with a total underwriting value of around $2.9 billion. This contributed towards CICC continuing to rank first among Chinese securities houses for international bonds issued by Chinese issuers, for the third consecutive year, according to Bloomberg.
Other achievements for CICC last year included: being designated as market maker for Southbound Trading under Bond Connect; advising four issuers on maiden international corporate ratings; and helping four issuers seize the right market window to launch and price convertible bonds – the only Chinese securities firm to participate in underwriting offshore convertible bonds by Chinese issuers in 2023.
In contributing to connectivity between the China and global capital markets, CICC also participated in the offshore bond issuance by the Ministry of Finance of the People’s Republic of China. Further, the bank was active in two-thirds of the offshore ESG bond issuances for Chinese issuers, representing 73% of the volume and ranking top among securities firms.
CICC also had a standout year for equity deals, ranking as the top IPO bookrunner for Chinese issuers in Hong Kong and the US, according to Dealogic.
The bank sponsored 21 Hong Kong IPOs, with an aggregate lead underwriting amount of $1.226 billion, and closed 23 Hong Kong IPOs acting as the global coordinator, with an aggregate lead underwriting amount of $992 million.
These transactions included several landmark Hong Kong deals with significant market influence in 2023, including: J&T Express, the third largest Hong Kong IPO in 2023; and Tuhu Car, the first Hong Kong IPO by a technological automotive service company.
BEST OFFSHORE RATINGS AGENCY
Lianhe Ratings Global
Lianhe hit an important milestone in 2023 – the first Chinese international rating agency to publish 100 ratings for both issuers and issuances.
At the same time, the diversity of its covered industries expanded last year, to include general corporates, banks and non-banking financial institutions – and compared with 2022, the firm saw a 289% year-on-year growth in number of new issuer coverage.
Further, Lianhe achieved a 23% growth in number of deals rated in 2023, up from 13 for the year before.
Its key transactions last year included: the first-ever solicited issuer rating for a bank by a Chinese international rating agency – for Zhuhai Rural Commercial Bank; and the first Lotus bond rating, for the offshore RMB bonds issued in Macau and listed on the China (Macau) Financial Assets Exchange.
SOUTH KOREA - INTERNATIONAL
BEST BANK
HSBC
HSBC showed why it deserves to be a repeat winner for this award in South Korea, capitalising on its universal banking capabilities to deliver outstanding performance in 2023. The bank recorded an increase in profit before tax of 61% compared with 2022.
In both commercial and investment banking, and across the bank’s strategic focus areas of sustainable finance and digitisation, HSBC achieved some mega and market-first deals.
In sustainable finance, these included: green loans to Hyundai Mobis for its electric vehicle plants in the US; Korea Export and Import Bank’s blue bond, a first in the country; and Industrial Bank of Korea’s gender equality themed social bond, the largest of its type in Asia Pacific.
HSBC also helped various Korean businesses unlock new opportunities through innovative digital payment and other solutions, and continued its leadership in debt capital markets, ranking first in Bloomberg’s Korea International Bond League Table for 2023.
BEST SUSTAINABLE BANK
Crédit Agricole Corporate & Investment Bank
Crédit Agricole CIB deserved to retain this award in South Korea given the firm’s pioneering role in the market through top-tier ESG structuring and advisory.
Standout transactions in 2023 included various iconic social bond issuances to drive positive impact. One was for the Industrial Bank of Korea to facilitate access to housing finance for low- and middle-income earners. Others related to agriculture for NH Bank, gender equality for Shinhan Bank, and SME empowerment for KEB Hana Bank.
Crédit Agricole CIB also demonstrated its capacity for innovation across sustainability-linked bonds with the first deal of its type in the country, and in providing ESG advisory. Plus, it advised various major Korean issuers on their sustainable issuance journey via launches of green bonds.
TAIWAN - DOMESTIC
BEST BANK; BEST CORPORATE BANK - LARGE CORP & MNCs; BEST INVESTMENT BANK; MOST INNOVATIVE USE OF TECHNOLOGY - BANKS
CTBC Bank
Another impressive year in 2023 saw leading domestic financial institution CTBC win a host of awards.
CTBC was particularly well-placed to again win “Best Bank”, outranking its peers in terms of revenue, profit and capital scale. This continues a successful past three years of growth in pre-tax income, rising from NT$349.7 billion ($10.8 billion) in 2021 to NT$530.2 billion last year.
The bank saw robust profit momentum across various business segments, especially in corporate banking, plus CTBC further expanded internationally, leading to its overseas profit contributing nearly 40% of the overall figure.
These metrics reflect CTBC’s pole position in terms of market share in insurance, credit card consumption and loans. The bank also has the largest base of digital users, seeing 8% growth in internet banking customers and 9% in mobile banking users.
From a transactional perspective, CTBC reaffirmed its leadership in leveraged buyouts in Taiwan, with Homeplus Digital’s NT$48.44 billion syndicated loan, and successfully brought new investors into the transaction.
CTBC also supported various landmark projects in Taiwan, mandated as the financial advisor by notable developers, CIP, and Ørsted. Further, the bank was integral to the biggest offshore wind project financing in Taiwan in terms of capacity and debt size.
CTBC also had a standout year in 2023 for corporate banking, especially for large and multinational companies. This unit saw the most significant growth, with fee income up 10% year-on-year and net interest income 21% higher over the same period. This performance resulted in 28% more pre-tax profit in 2023 than the previous year.
Further, the average loan balance was 10% more and the average deposit balance 10% higher last year than 12 months earlier.
Landmark transactions CTBC worked on which led to these outcomes included: Taiwan Semiconductor Manufacturing Company’s investment in Japan and the US; Huawei Global Customer Financing Co’s secondary AR assignment; and Anhui Korrun Co’s acquisition deal in Indonesia.
Beyond these achievements, CTBC also saw success in 2023 for its efforts to consistently digitise and innovate.
Notably, with the emergence of artificial intelligence (AI), the bank’s use of technology has become increasingly apparent. For example, its “Intelligent Dashboard” is a human/machine platform that harnesses the power of data analytics. Also, CTBC developed “AI Skynet”, employing proprietary patented AI and cross-industry data to reduce fraud risk in digital account opening and lifecycle management.
To further reinforce its technology dominance, CTBC introduced a yearly end-to-end digitisation plan, where representatives of different departments coordinate to modernise existing platforms, including improving employees’ work capacity.
BEST BROKER
BEST DCM HOUSE
Yuanta Securities
Yuanta Securities has a firm grip on these awards, showing again in 2023 why it deserves recognition in these segments.
Within debt capital markets, the firm participated in 106 local corporate bonds in 2023, with a total underwriting amount of NT$88.84 billion ($2.7 billion), marking a 37% increase compared with 2022.
Yuanta Securities was also innovative last year in diversifying the investor base for Taiwan’s corporate bond market, beyond financial institutions and government entities. The firm tapped into its own branch offices and sales channels to focus on enterprises, investment companies and senior executives of listed companies with ample cash flows, in turn filling the gap left by some financial institutions unable to subscribe.
Further, Yuanta Securities took the role as a communication bridge between the Taiwan Stock Exchange Corporation and issuers for future regulatory changes.
Meanwhile, the firm also maintained its stance in 2023 as the prominent player in Taiwan for brokerage and margin services.
Compelling evidence can be seen from key highlights of its equity research and advice. For example, the firm expected PC shipments to remain robust amid the Russia-Ukraine conflict and rising demand for 5G upgrades, artificial intelligence and ongoing digital transformation. As a result, it continued to recommend Getac and saw the share price rise by 126% in 2023, versus the TAIEX’s 26.8% increasing during this period.
Another case was Yuanta Securities being among the first to highlight favourable trends for Great Tree, such as it being the leading domestic chain pharmacy brand in most of Taiwan. The company’s share price increased by 40%, outperforming the broad market by 16%.
BEST COMMERCIAL BANK - SMEs; BEST PRIVATE BANK; MOST DEI PROGRESSIVE - BANKS
E.SUN Bank
In a market where small- and medium-size enterprises (SMEs) account for over 98% of all corporates, and more than 80% of national employment, E.SUN Bank was notable last year in supporting this key segment of the economic landscape.
The bank provided working capital for SMEs and helped them use government resources to enhance their post-pandemic market competitiveness and restore prosperity. This helped E.SUN Bank achieve a growth rate of 9.2% year-on-year, outperforming the average for all banks, at 4.7%.
Among its initiatives last year, the bank introduced “Smart E-gate” for enterprises with annual revenue below NT$100 million (around $3 million). This has accelerated the credit process, to solve the problem of having to review multiple documents.
The bank also launched the “FamilyMart Franchise Sustainable Performance-Linked Loan Project” in 2023, the industry’s first financial service to apply sustainable performance-linked loans to franchise industries and provide carbon reduction performance-linked loans to SMEs.
E.SUN Bank also had an impressive year for its offering for wealthy Taiwanese, seeing 56% growth in the number of private banking customers, with total assets under management increasing by nearly 35%.
Among the bank’s most striking achievements last year in this business segment came from innovation. For instance, it became the first bank to issue exclusive products linked to ESG for wealth management, with total sales reaching the equivalent of $50 million.
E.SUN Bank also had a successful year in terms of diversity, equity and inclusion (DEI), continuing to protect the rights and gender equality of its employees. This has come from promoting fair recruitment and hiring, non-discriminatory promotion and salary adjustment, and diverse welfare protection.
In 2023, it hit its key management goals – achieving more than 50 average employee training hours, ensuring employee retention above 90%, and maintaining a ratio of female executives at 41% or above. Also last year, E.SUN Bank created a dedicated DEI unit, with the goal of providing a better employee experience and fair cultural systems.
BEST SUSTAINABLE BANK
Bank SinoPac
In alignment with the Taiwan government’s target of net zero by 2050, Bank SinoPac continued to drive green financial services in 2023. For example, the bank stood out as a market leader in solar energy financing, assisting over 8,000 domestic businesses and households in the installation of solar power systems by the end of 2023.
Meanwhile, Bank SinoPac has been heavily involved in syndicated loans to green energy. In 2023, it acted as the lead arranger for eight syndicated loans to solar power plants. Also last year, the bank issued the second sustainable development bond for NT$2 billion ($62 million).
Another first came when Bank SinoPac underwrote the ESG fixed rate commercial paper for Shinshin Credit Corporation in 2023, with the interest rate linked to ESG metrics to achieve sustainability via green energy and creation of a renewable energy business.
TAIWAN - INTERNATIONAL
BEST BANK; BEST INVESTMENT BANK
Citi
In a busy year for Citi in Taiwan, it impressed the judges to win these two awards. In terms of financial performance, the bank’s continuing operations reported an increase in revenue in 2023 of around 56% from the previous year, with earnings before tax roughly 65% higher.
The bank also played a key role in many significant deals in Taiwan last year, and across clients of all types. These included: TCC’s combo global depositary receipt (GDR) and green ECB offerings, representing the largest concurrent equity and convertible bond issuance in Asia Pacific over the past two years, and the first green convertible bond issuance in Taiwan; and WT Microelectronics’ acquisition of Future Electronics, the largest acquisition in the IT distribution sector globally since 2021.
These transactions also showcased the dominance of Citi’s investment banking franchise in Taiwan across advisory, debt and equity capital markets.
In 2023, this was clear via four landmark M&A transactions as multinationals moved to streamline global operations: Wistron’s sale of its smart device manufacturing facility in India to Tata Electronics; ABB’s sale of its power conversion division to AcBel Polytech; TCC’s acquisition of 20% in OYAK Denizli and 60% in Cimpor; and Yageo’s acquisition of Heraeus Nexensos.
Citi was also instrumental in seven key capital markets deals in 2023. These involved fundraising to enable green transition and global expansion, through two GDR offerings. The bank also worked on two leveraged debt instruments to fund future expansion plans, for Lotus Pharmaceutical’s multi-tranche syndicated loan, and Zhen Ding’s syndicated sustainability-linked term loan.
Citi also showed its capabilities last year in bringing foreign issuers to Taiwan’s capital markets, for example with Formosa bond offerings for Shinhan Bank, Mubadala, and GreenSaif Pipelines.
BEST CORPORATE BANK - LARGE CORP & MNCs; BEST PRIVATE BANK; BEST SUSTAINABLE BANK; BIGGEST ESG IMPACT - BANKS
HSBC
HSBC had a successful 2023 across several of its key business units, enabling the institution to record an impressive financial performance year-on-year – total revenue was up 40% and profits before tax 55% higher.
In particular, the bank again proved its ability to service the needs of large corporates and multinationals, in enabling global connectivity to capture cross-border opportunities, furthering the transition to net zero, and building smarter businesses to ride on digitalisation and new economy trends.
HSBC also delivered new and enhanced product solutions and digitalisation to these clients in 2023. For example, this included better digital payment solutions, as well as point-of-sale finance application programming interfaces (APIs), to embed such capabilities into e-commerce platforms.
HSBC also had a standout year in private wealth in 2023, with its Taiwan business seeing a 35% year-on-year increase in new relationships onboarded, a 65% boost to annual revenue, and a 64% increase in assets under management.
The bank puts this down to the group’s investment in its talent and product offerings – resulting in more specialised roles plus a 55% increase in full-time onshore relationship managers, along with new solutions such as Lombard lending and domestic stock pledge lending, FX options, and exclusive insurance products for succession planning.
Sustainability was another area in which HSBC thrived last year. From a transaction standpoint, the bank worked on a $4 billion equivalent non-recourse project financing green loan, one of the largest financings for offshore wind to date, to support the Taiwan government’s renewable ambitions. HSBC also provided an alternative investment option for securing high-impact, scalable, nature-based carbon removal offsets.
At the same time, the bank’s wide-ranging ESG and sustainable investing governance framework saw it end the year with 90 related products available.
This commitment also showed what the bank is capable of in terms of making an impact. And it was a deserving winner of this award, too, based on the outcome of its ESG initiatives to strengthen local communities and increase social mobility.
These included philanthropy and charity donation programmes, as well as fostering diversity and inclusion, investing in the younger generation and supporting vulnerable communities. HSBC was also focused on reducing the environmental impact of its own banking operations via emissions, waste and energy management.
MOST INNOVATIVE USE OF TECHNOLOGY - BANKS
DBS Bank
Last year’s achievement by DBS Bank of integrating Citi Taiwan’s consumer banking business after the acquisition, won the Singapore-based institution this award.
The scope of the migration included 2.7 million credit card holders and 600,000 bank account holders. Yet it was essential for DBS to match the product offerings provided by Citi before the deal was sealed in mid-August 2023.
In particular, DBS had to launch a debit card for customers – a product it didn’t previously offer in the Taiwanese market. Adding to the challenge was the fact DBS could only migrate Citi Taiwan’s customer data for debit card generation after the deal closed, and this had to be completed by September 12.
DBS enhanced its systems and workflows to achieve this, developing an end-to-end flow which included debit card management and transaction modules.
You can read the winners from South Asia here and Southeast Asia here. The rationale was first published in FinanceAsia's Volume Two 2024 print edition.
