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Maybank sees the recent weakness as an accumulation opportunity.<\/strong><\/p>\n Singapore bank<\/a> shares fell over the past week amidst concerns that expanded Chinese outbound investment regulations covering individual investors could weigh on North Asia wealth flows, according to Maybank.<\/p>\n DBS Group Holdings fell 4.6%, Oversea-Chinese Banking Corporation dropped 5.0%, whilst United Overseas Bank declined 2.3%.<\/p>\n Whilst Singapore lenders have increased their exposure to North Asia wealth over recent years, the majority of assets under management still originate from Singapore and Southeast Asia, limiting overall exposure.<\/p>\n \u201cSector fundamentals of strong execution, asset quality, & regional growth remains solid,\u201d the report noted. \u201cWe see weakness as an opportunity to accumulate.\u201d<\/p>\n In 2025, North Asia accounted for approximately 22% of pre-tax profit for DBS, 18% for OCBC, and 7% for UOB (adjusted for one-off provisions).<\/p>\n The report noted that China\u2019s expanded rules appear aimed primarily at curbing unregulated capital outflows and channeling wealth through approved and compliant mechanisms, rather than broadly restricting offshore diversification.<\/p>\n The measures are also viewed as potentially supportive of China\u2019s longer-term goal of internationalising the renminbi. In this context, some analysts suggest that licensed institutions in Hong Kong could benefit as capital flows shift from informal channels into regulated banking structures.<\/p>\n The report said that direct impact on Singapore lenders may be limited<\/a>.<\/p>\n \u201cThe rules are aimed mainly at Chinese residents living in mainland China,\u201d it noted. \u201cThis is not a segment SG banks are licensed to serve.\u201d<\/p>\n Instead, the focus for Singapore banks remains on offshore Chinese wealth, including clients with assets, businesses, or family offices located outside mainland China, particularly in Hong Kong and Singapore.<\/p>\n \u201cThese new rules are more an extension of existing controls, rather than a completely new restriction on a major client segment for SG banks,\u201d Maybank said. \u201cThe sector may even benefit at the margins if clients diversify their booking centres away from HK.\u201d<\/p>\n It reiterated that the sector outlook remains supported by stable asset quality, resilient fee income, stabilising net interest margins, and continued regional credit demand.<\/p>\n The recent share price weakness is viewed by some as a potential accumulation opportunity, with OCBC highlighted for ongoing restructuring synergies under its \u201cOne OCBC\u201d strategy and increased focus on Southeast Asia, while DBS is noted for its capital return visibility and scale advantages. Maybank sees the recent weakness as an accumulation opportunity. Singapore bank shares fell over the past week amidst concerns that expanded Chinese outbound investment regulations…<\/p>\n","protected":false},"author":1,"featured_media":61335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-61334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/61334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61334"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/61334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/61335"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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