International News 28/02
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Standard Chartered has ceased offering new offshore investment products to clients in China.
Standard Chartered has temporarily suspended new investments by its clients in China for offshore products through quota-based channels. The London-based bank cited 'commercial reasons' for the halt, but did not provide further explanation. This decision comes as offshore investments have seen increased demand due to the weakness in local Chinese markets and currencies. The suspension of investments under the qualified domestic institutional investor (QDII) program aligns with the Chinese government's efforts to control capital outflows due to a weakening yuan and economic slowdown. This program is the largest outbound investment channel for Chinese investors, allowing Chinese wealth and corporate clients to invest in offshore funds, bonds, and other structural products. Standard Chartered informed its clients that they would not be accepting subscriptions for new investments.
Goldman Sachs and Mubadala have invested US$1 billion in the Asia-Pacific region.
Goldman Sachs has received $1 billion from Abu Dhabi sovereign wealth fund Mubadala Investment Co to expand its private credit deals in Asia. The partnership between Mubadala and Goldman Sachs' asset management unit will focus on investing in the Asia Pacific region, with an emphasis on India. This move follows a similar mandate from the Ontario Municipal Employees Retirement System in September. The private credit market has experienced significant growth in recent years and is attractive to investors due to the potential for higher yields. It has become the preferred investment choice for pension funds, foundations, and sovereign wealth funds, and an important source of corporate funding. Goldman Sachs' collaboration with strong institutions like Mubadala positions them favourably in this market.