Singapore Shops Sydney

01-Nov-2010

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

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By Kevin Brekke, Editor Casey Research Switzerland

The Singapore Exchange Ltd. (SGX) announced today (October 25, 2010) its intent to take over the Australian bourse (ASX) in a US$8.3 billion cash and shares offer.

Following the announcement, SGX CEO Magnus Bocker said at a press conference, “The capital flow we see today is really changing from West to East. This will be the gateway to Asian capital markets.”

The combined exchange company would rank second in Asia by number of listed companies – over 2,700 – and would have a market cap of about US$1.9 trillion, placing it fourth in Asia behind Tokyo, Hong Kong, and Shanghai.

The offer, and ASX’s enthusiastic cooperation, was likely spurred by approval this year from the Ministry for Finance of a rival electronic exchange, the Chi-X Australia, thus killing a near monopoly long enjoyed by ASX. Chi-X Australia is expected to begin operations in 2011.

Chi-X Australian is a subsidiary of Chi-X Global Inc, which is owned by global broker Instinet, itself a part of Nomura Holdings of Japan. Chi-X Global is aggressively expanding, having captured 28% of UK trading and 9% of Canada’s.

The deal looks set for smooth sailing. Recent remarks by the head of the Australian Competition and Consumer Commission, the last major regulatory hurdle, indicate full support for the deal and the advantages that competition within the industry will yield.

This is a positive move on many fronts:

  • It shows that governments are capable of getting out of the way of the free market and letting the “invisible hand” work its magic. Now, if only the wisdom of this action would permeate all governments regarding their interference in other areas such as finance, trade, the economy, even the institution of government itself.
  • The combination creates the world’s second largest cluster of commodity companies (about 900 listings in energy, metals, agriculture), as well as the second largest institutional investor base with assets under management of over US$2.3 trillion, inclusive of sovereign wealth funds. As resource investors, this can only mean increased exposure to investment capital for our sector and our companies.
  • One knock-on effect we can look forward to is a lowering of commissions by brokerages offering share dealing in Asia and Oceania markets.
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