Standard Chartered Plc’s (02888.HK) head of warrant sales for Greater China said he has no regrets over the closure of the bank’s structured product division.
Simon Yung Sai-kuen, who started the division along with several colleagues five years ago, said he is proud of the performance of the unit, which now ranks among the top five in the market, the Hong Kong Economic Journal reported on Tuesday, citing his remarks on his Facebook account.
Yung has left the bank amid its ongoing restructuring.
Sales director Ruby Lam, a former television news anchor, also said on her Facebook page that she has left the bank.
Standard Chartered is withdrawing from the derivative market and has stopped launching new structured products, including convertible bonds, amid changes in its business strategy.
Its stock trading services, however, will continue.
About 30 to 40 staff members have reportedly been sacked as a result of the restructuring.
The bank said the structured product business is being terminated as part of its efforts to exit non-core businesses.
The move reflects the impact of regulators’ tighter scrutiny of lenders’ trading activities while potentially leading to better capital adequacy ratio and more stable profit levels for Standard Chartered, said James Antos, head of banking research at Mizuho Securities Asia Ltd.
The bank, which has issued more than 600 outstanding warrants worth HK$400 million, has pledged to maintain the market liquidity of the structured products it launched before Oct. 26.
StanChart to exit equity derivatives, convertible bonds (Oct. 27, 2015)
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