SG advises clients to avoid Asia unless focus is on the long term
French bank Societe Generale, which is renaming its commercial and investment banking and investment services activities under the SG moniker, plans to pursue opportunities in Asia but has advised clients not to invest in the region for now.
'If you don't have to be investing in Asia, don't invest here for the time being,' SG Securities (HK) chief executive Jean Pierre Mustier said yesterday.
'It is important to put Asia in perspective with the rest of the world when deciding the risk. Asia is too risky today compared with the rest of the world.
'It is very dangerous to invest in Asia for the quick buck. Companies should only invest if they anticipate a long-term future here.' Mr Mustier warned investors only to put money in Indonesia with a view to long-term investment and not be tempted by the prospect of quick cash.
'Only put money in Indonesia if there is a long-term view and be very selective about it. Don't try and take advantage of the bad Indonesian situation unless it is with a long-term approach.' SG's Asia chief executive Gilbert Pla said yesterday the Asian crisis would not derail the bank's long-term strategy for the region and that in the past four months it had continued to invest in the region.
In Thailand, SG had purchased a majority stake in Asia Credit, one of Thailand's oldest finance companies, which would be split into a finance and securities company in July.
SG had also taken control of Yamaichi Asset Management, the fifth-largest fund management company in Japan with assets of US$20 billion under management.
In Hong Kong, Mr Pla said the bank would continue to focus on core clients in a long-term strategy with no plans to cut back like some other foreign banks.
He said the bank's multinational clients were sustaining a sound financial base despite the economic downturn.
'Companies may have cash-flow problems with funding requirements to launch certain financial projects from time to time but all good quality names are in a sound position, away from potential liquidation,' Mr Pla said.
