Asia

Singapore's United Overseas Bank, losing ground at home as HSBC Holdings and Citigroup expand, is seeking growth in China. Its biggest competitors there: HSBC and Citigroup.

"I'm not sure what advantages Singapore banks have," said Ho Kok Hua, fund manager at APS Asset Management in Singapore. "The opportunities in China are overblown. Competition is going to be very intense, and profitability will be a problem for most."

The Republic of the Philippines mandates three banks for a $500 million offering as the country's first public subordinated debt issue is priced.

After requesting that banks submit ideas for a new dollar bond, the Department of Treasury mandated three houses yesterday (Wednesday) for a $500 million 10-year deal. HSBC, Salomon Smith Barney and UBS Warburg won the books for an offering, which may launch as soon as today.

In the meantime, Metrobank successfully completed the Republic's first public subordinated debt transaction yesterday under the lead of UBS Warburg.

China is not ready to relax its rigid foreign exchange regime, despite a landmark stock market reform next month that could trigger an influx of overseas cash, economists said yesterday.

The imminent launch of a long-awaited scheme that allows qualified foreign institutional investors (QFII) to buy yuan-denominated A shares has prompted overseas foreign exchange markets to price in a more flexible and stronger yuan.