AMTD International Collaborates With Singapore Exchange to Develop Capital Markets

Uncertainties lie ahead for Asia's largest independent investment bank.

Author: Anthony Russo   

AMTD International Inc. (NYSE: HKIB) has entered a long term partnership with the Singapore Exchange (SGX) in efforts to develop Singapore's capital markets and enhance its presence in the city, in mainland China, and around the world. 

The largest independent investment bank in Asia said in a statement on Monday that the collaboration would strengthen and allow both companies' corporate clients as well as partners in capital raising activities to join with public markets and expand globally. 

The two parties will also jointly explore using distributed ledger technology in Singapore, adopt blockchain in capital markets, international payments and settlements, and trade finance.

In addition, the Hong Kong-based company also announced a few other strategic initiatives. Firstly, its parent company AMTD Group, will partner with Singapore FinTech Association to connect local entrepreneurs with Singapore's capital markets. Also,  AMTD's digital affiliate will enable data analytics in its SpiderNet eco-system to offer advice and guidance in efforts to help corporations. Lastly, AMTD will form an Investment Bank Academy in Abu Dhabi to connect the United Arab Emirates' capital with Singapore and other world markets. 

"We are pleased to become one of SGX's long-term strategic partners," Calvin Choi, the chairman, and chief executive officer of AMTD Group, said in a statement today.

He added, "With the support of MAS and the various industry associations, we will propel the development of Singapore's capital markets and empower the connectivity between local FinTech entrepreneurs and the local capital markets and beyond." 

In August 2019, AMTD kicked off public trading, selling 20.8 million American depositary shares at $8.38 each, raising $174 million in its IPO. As of now, the impact of AMTD's operations during the Covid-19 outbreak is unknown. However,  in April, the company said that it expects its net profit for the full year 2019 to increase by "no less" than 50% year-over-year. 

AMTD's parent is also reportedly eyeing public listing plans in Singapore and New York for its digital arm, AMTD Digital. AMTD  Digital has been looking to obtain a digital banking license in Malaysia; AMTD Digital has raised $100 million in a pre-IPO round of funding.

Shares of AMTD were trading flat from Monday's close at $7.50 per share on Tuesday morning. The stock is a hold for now until it provides an update for the first quarter.