A stampede of bankers for the airport departure gates in
recent months in Indonesia, Thailand and the Philippines bears
witness to a change of Asian strategy among investment banks. Of
the 35 foreign-registered brokerages in Manila, 18 have exited the
market in the past few months. Among the deserters are HSBC and
Merrill Lynch. HSBC has also closed its securities operation in
Indonesia and scaled back its corporate finance business in
Thailand. Merrill Lynch has pulled out of Indonesia too and is
rumoured to be looking to sell Thai Phatra Securities, a $68
million joint venture set up in Thailand just three years ago.
Dresdner Kleinwort Wasserstein cut its whole equity team in the
region by getting rid of 170 staff. Many believe that it is only a
matter of time before such houses as ABN Amro, ING Barings and SG
follow suit.
It's not just the larger global...
