Wells Fargo touts edge for Asian firms eyeing US

Wells Fargo, a San Francisco-based lender vying for the title of world's biggest bank by market capitalisation with Beijing-headquartered Industrial and Commercial Bank of China, is entering the competitive Asian capital markets and asset-management businesses to meet increasing demand from large companies in the region.

Offering US dollar-denominated bonds to Asian corporate customers is one key area the low-profile United States bank is keen on exploring, as well as hedging tools like interest-rate and currency swaps aimed at clients with significant exposure to the US market or those looking to buy assets in the world's biggest economy.

The US bank recently hired veteran banker Mark Jones, formerly UBS' head of fixed income, commodities and currencies sales in the Asia-Pacific region, to fill a newly created position overseeing its investment banking and capital market activities in Asia.

In an interview with the , John Rindlaub, Wells Fargo's Asia-Pacific region president, said it aimed to leverage its strong balance sheet and global network of more than 2,000 financial institutions, offering cross-selling of products such as asset management, and interest rate and currency swaps to Asian-based multinational corporations that were increasingly interested in US assets.

"Revenue in the cross-selling business will grow faster than in the traditional banking unit, which accounts for about 85 per cent at present," said Rindlaub, adding that the size of the cross-selling arm should be around "one third of overall revenue in three years".

Interest in US assets has grown substantially since mainland meat processor Shuanghui International embarked on a US$4.7 billion acquisition of Smithfields Food, the world's biggest pig and pork producer in what would be the single largest purchase of a US asset by a Chinese firm.