News

South Korean internet-only lender Kakao Bank has received official approval from the Thai government to operate a virtual bank, marking a significant step in its global expansion strategy and the first re-entry of a Korean bank into the Thai financial market in 25 years. The Ministry of Finance of Thailand has selected a consortium led by Kakao Bank and SCBX, one of Thailand’s leading financial groups, as one of three successful applicants licensed to establish a virtual banking presence in the country. The announcement places Kakao Bank at the forefront of Thailand’s digital banking evolution, which aims to provide comprehensive financial services entirely through online platforms without the need for traditional brick-and-mortar branches. Yoon Ho-young, Chief Executive Officer of Kakao Bank, described the licence as a pivotal milestone in the company’s growth strategy. “This licence is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea’s digital finance technology,” he stated. The consortium was highly rated for its robust digital banking infrastructure, advanced technological expertise, and strong localisation strategies—factors that aligned closely with the Thai government’s vision for a digitally driven banking future. The virtual banking system in Thailand is scheduled to enter full-scale operations in the second half of 2026, following a one-year preparation period. Kakao Bank’s involvement is expected to serve as a strategic entry point not only for Korean financial institutions but also for broader Korean corporate interests looking to establish a foothold in the Thai market. -Yonhap

Shares in Foshan Haitian, China’s leading soy sauce manufacturer, made a modestly positive debut on the Hong Kong Stock Exchange on Thursday 19 June, following a US$1.3 billion initial public offering – one of the largest in the territory so far this year. The Guangdong-based company saw its shares rise as much as 4 per cent in early trading, before settling to close at HK$36.50, up 0.55 per cent from its listing price of HK$36.30. The listing price had been set at the upper end of its offer range. The performance was notably resilient in the context of a broader market decline, with the Hang Seng Index falling by 2 per cent on the day. Chairwoman Cheng Xue described the listing as “another important milestone in Haitian’s development history”. Established in 1955 as a small family-run workshop, Foshan Haitian has since grown into China’s largest condiments producer by volume for the past 28 consecutive years. The Hong Kong debut marks its second major market entry, following its Shanghai listing in 2014. The float attracted substantial interest from cornerstone investors, with Hillhouse Capital, Singapore’s sovereign wealth fund GIC, and Royal Bank of Canada’s Global Asset Management among those committing to US$595 million worth of shares. The company also exercised its greenshoe option, signalling robust investor appetite. Proceeds from the offering are earmarked for product development, production expansion, and international market penetration, particularly across Southeast Asia and Europe. The listing comes at a time of renewed momentum for Hong Kong’s capital markets, following years of subdued activity driven by pandemic-related disruptions, domestic economic stagnation in China, and increased geopolitical scrutiny. Recent high-profile listings, including battery giant CATL and pharmaceutical group Jiangsu Hengrui, have revived optimism around the city’s IPO prospects. Edward Au, Deloitte China’s southern region managing partner, noted that Hong Kong is “well-positioned to contend for the top position in the global IPO market in 2025”, though he cautioned that broader macroeconomic and geopolitical uncertainties could still present headwinds. Foshan Haitian’s debut follows Jiangsu Hengrui’s US$1.3 billion raise in May, one of the largest biopharmaceutical IPOs globally this year, and CATL’s US$4.6 billion listing — the biggest to date in 2025. According to Bloomberg data, IPOs and follow-on share sales in Hong Kong have so far generated US$26.5 billion as of mid-June, a substantial increase from US$3.8 billion over the same period last year. The Hong Kong Stock Exchange currently has dozens of pending applications from mainland Chinese firms seeking to list, underscoring the resurgence of confidence in the city’s equity markets. -AFP

VinFast, the Vietnamese electric vehicle (EV) manufacturer backed by Vingroup, has announced the opening of its first dealership in San Diego, California, with operations set to commence later this month. This move signals a notable strategic shift as the company leans into a dealership model in an effort to bolster sales across the United States. Having initially pursued a direct-to-consumer sales strategy akin to that of Tesla, VinFast has reassessed its approach in light of a series of challenges, including tepid demand, intensifying competition and the implications of recently imposed U.S. tariffs on Chinese and Vietnamese goods. The company’s latest move underscores its renewed commitment to the American market despite these headwinds. VinFast confirmed it is actively seeking and evaluating additional dealership opportunities throughout California, reflecting a broader recalibration of its market entry strategy. Earlier this month, the company’s chair disclosed plans to introduce an electric bus to the U.S. market, further diversifying its product offering in the region. Concurrently, VinFast is in the process of scaling back its U.S. retail footprint by closing selected showrooms, with a renewed focus on expansion in Asian markets, including Indonesia and India. Shares in VinFast edged slightly higher following the announcement. -Reuters

HSBC has announced the appointment of Christopher Chua as Global Head of Mergers and Acquisitions, effective immediately. Chua, a seasoned investment banker with more than two decades of experience, will continue to be based in Hong Kong. Previously serving as the bank’s Head of M&A for Asia, Chua takes the helm of the global M&A division following the departure of former global head Kamal Jabre, who left the firm last month to join JPMorgan. The appointment was confirmed by a company spokesperson and detailed in an internal memo reviewed by Reuters. Adam Bagshaw, HSBC’s Global Head of Capital Markets and Advisory, noted in the memo that Chua will lead the M&A franchise across Asia and the Middle East, regions where HSBC maintains a strong competitive edge and delivers significant client value. Chua joined HSBC in 2022 from Credit Suisse to lead its Asia M&A operations and has a proven track record advising multinational corporations on complex cross-border transactions. His promotion marks the latest senior leadership change as HSBC continues to reshape its global investment banking business with an increased focus on Asia and the Middle East. As part of its strategic refocus, the bank has scaled back its M&A and certain equity operations in Europe and the Americas earlier this year. This shift aligns with HSBC’s broader strategy to deepen its footprint in high-growth markets across Asia and the Middle East. In addition, Vikas Seth will chair the bank’s M&A business alongside his current responsibilities as Vice Chair of Corporate and Institutional Banking, where he oversees strategic client engagement. -Reuters

LG Energy Solution, South Korea’s foremost battery manufacturer, has announced a strategic agreement with Toyota Tsusho Corporation, a trading affiliate of Japan’s Toyota Group, to establish a battery recycling joint venture in the United States. The new entity, named Green Metals Battery Innovations LLC, will be based in Winston-Salem, North Carolina. The facility will focus on the pre-processing of battery production scrap, dismantling and shredding material to extract black mass—a substance rich in valuable metals including nickel, cobalt, and lithium. Scrap generated during the production of electric vehicle batteries for Toyota Motor Corporation will be supplied by LG Energy Solution. The extracted black mass will subsequently undergo a separate post-processing phase to recover raw materials. These recovered inputs will then be recycled into the production of new battery materials. Construction of the facility is slated to begin later this year, with operations scheduled to commence in 2026. Once operational, the plant will possess an annual processing capacity of 13,500 tonnes of scrap—equivalent to more than 40,000 automotive batteries. LG Energy Solution underscored the strategic significance of the partnership with Toyota Tsusho, citing the latter’s advanced pre-processing technology and proven operational capability. The collaboration is expected to play a pivotal role in reinforcing the company’s battery recycling infrastructure across North America. “This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America,” stated Kang Chang-beom, Chief Strategy Officer at LG Energy Solution. -Yonhap

GAM Holding AG has announced the appointment of Albert Saporta as its new Group Chief Executive Officer, effective 1 July 2025. The appointment marks a pivotal leadership change at the Zurich-listed asset manager, as the firm continues its strategic transformation. Saporta, a veteran of the investment management industry with over 40 years of experience, succeeds Elmar Zumbuehl, who has led the firm since October 2023. Zumbuehl will remain with GAM until the end of 2025 to ensure a smooth transition. A long-standing figure in global finance, Saporta brings deep expertise to the role. His career began at Paribas in Paris before he moved to Merrill Lynch in London, focusing on Japanese equity sales between 1985 and 1988. He subsequently joined UBS Securities and then IFM, a hedge fund backed by Jacob Rothschild’s St James’s Place and AIG. In 1995, he founded AIM&R, a Geneva-based hedge fund advisory and research firm, which he later sold to ABN Amro Bank in 2006. AIM&R was relaunched in 2011 and continues to serve hedge funds, pension schemes, real estate trading firms, and family offices globally. Saporta has served as GAM’s Global Head of Investments and Products since October 2023, a role in which he has contributed to the firm’s repositioning as a lean and scalable platform following a challenging period. “These leadership changes reflect that GAM has successfully transformed and is now well positioned for growth,” the company stated. GAM has experienced significant restructuring under Zumbuehl’s tenure. Following the collapse of a takeover bid by Liontrust Asset Management in 2023, the firm secured strategic funding support from investor group NewGAMe, including Rock Investment SAS, which committed up to CHF 100 million ($1.09 million) in capital. Zumbuehl subsequently led efforts to streamline GAM’s operations and divest non-core entities. “On behalf of the board of directors, I would like to express our deepest gratitude to Elmar for his dedicated service and the significant achievements he has accomplished during his many years at GAM,” said Antoine Spillmann, Chairman of the Board. “His leadership has been pivotal in steering the company through transformative changes and setting a solid foundation for future sustainable growth.” In tandem with the leadership transition, Tim Rainsford will return to GAM as Group Distribution Officer on 1 October. Rainsford was formerly CEO of Generali Investments Partners and most recently served as Chief Product and Distribution Officer at Generali Asset Management. He will oversee distribution efforts, with Rossen Djounov, Global Head of Client Solutions, remaining a key member of the leadership team and reporting directly to Rainsford.

Southeast Asia’s largest low-cost carriers are pressing ahead with aggressive fleet expansion strategies, despite mounting cost pressures and increasingly fierce competition that have already prompted some players to retreat. The latest casualty is Jetstar Asia, Qantas Airways’ Singapore-based subsidiary, which will cease operations by the end of July after nearly two decades, citing unsustainable cost increases. The budget airline model has proliferated across Asia over the past twenty years, underpinned by rising disposable incomes and robust travel demand, particularly from Chinese tourists. Industry forecasts anticipate that air travel demand in Asia will outpace all other regions in the coming decades, further encouraging carriers such as Malaysia’s AirAsia and Vietnam’s VietJet Aviation to expand their already substantial aircraft orderbooks. However, profitability remains a challenge. According to the International Air Transport Association (IATA), Asia-Pacific carriers are forecast to post a net profit margin of just 1.9 per cent in 2024, well below the global average of 3.7 per cent. The region’s rapid post-pandemic capacity recovery has intensified fare competition, especially among price-sensitive leisure travellers. ForwardKeys data shows that international airfares across Asia fell 12.0 per cent year-on-year in 2024. AirAsia, Southeast Asia’s largest low-cost carrier, reported a 9.0 per cent drop in average fares in the first quarter, attributing the decline to increased capacity and the pass-through of savings from lower fuel costs. Yet cost headwinds are escalating. Labour, airport fees, and ground services have all become more expensive, while a global aircraft shortage has driven up leasing and maintenance expenses. Jetstar Asia cited double-digit increases in fuel, airport charges, and security fees at its Singapore hub as key factors behind its decision to exit the market. “The buffer is extremely thin, and with margins this low, any cost increase can affect an airline’s viability,” said Sheldon Hee, Vice-President for Asia-Pacific at IATA. Aviation intelligence provider OAG noted in a recent white paper that Asia-Pacific remains the most competitive global aviation market, where excess capacity has pushed fares to levels that threaten profitability. The report emphasised that aligning supply with demand, and managing cost-revenue dynamics, is now more critical than ever. Two-thirds of international seat capacity within Southeast Asia is now operated by budget carriers—double the global average—according to the CAPA – Centre for Aviation. Analysts suggest Qantas opted to redeploy Jetstar Asia’s fleet to more efficient markets in Australia and New Zealand, rather than continue absorbing losses in a saturated environment. Southeast Asia’s low-cost airline sector was already grappling with profitability pressures before the pandemic, a situation now compounded by structural cost increases. Smaller operators face particular difficulties. Jetstar Asia, with a fleet of 13 aircraft, lagged behind its regional competitors in scale. As of 31 March, Scoot (Singapore Airlines’ budget arm) operated 53 aircraft, AirAsia 225, VietJet 117 including its Thai unit, and Cebu Pacific 99. Each of these airlines has committed to further fleet expansion. VietJet, in a significant move announced this week at the Paris Airshow, signed a provisional agreement to acquire up to 150 additional Airbus narrow-body aircraft. This follows a recent order of 20 Airbus A330neo wide-bodies and builds on its existing commitment to purchase 200 Boeing 737 MAX jets. Meanwhile, AirAsia is pursuing additional fleet growth, with ongoing negotiations to acquire 50 to 70 long-range single-aisle aircraft and 100 regional jets. Chief Executive Tony Fernandes confirmed the group’s intention to use these jets to reach new destinations. “At the end of the day, it is go big or go home,” remarked Subhas Menon, Director-General of the Association of Asia Pacific Airlines, underscoring the prevailing mindset in an increasingly high-stakes environment. -Reuters