NEDFINANCE (Asia) is leading South African banks in Hong Kong into a period of post-sanctions expansion after having been granted the first dealing licence by the Securities and Futures Commission.
A subsidiary of the South African bank, Nedcor, NedFinance has been operating as a trade finance house in Hong Kong for the past 10 years, and is the only South African bank to earn the licence.
The new licence allows NedFinance to market its services, which it was prohibited from doing while sanctions were in force.
Hong Kong investors have shown they are enthusiastic about South Africa.
NedFinance alone has handled investments worth several billion dollars in the past two years.
Barrie Scott, NedFinance's general manager in Hong Kong, said: ''Chinese investors are keen to put their money in South African bonds, via the financial rand, because, with income payable in commercial rands, they can get returns of up to 19 per cent.'' The country operates a two-tier exchange rate system, in which the financial rand is used to attract overseas investors. It trades at a 23.5 per cent discount to the commercial rand.
