The Chinese cross-border regulatory developments have had a limited impact so far, the Goldman Sachs report says. China's State Council Order No. 837 which is effective from July 1, significantly tightens oversight of outbound investments, explicitly including high-net-worth individuals. It has broadened the definition of “outbound investment”, subjects individuals to national security reviews, and imposes penalties for opaque or non-compliant wealth-transfer structures.
On June 18, Goldman Sachs hosted OCBC’s investor relations team during its Asia Financials Corporate Day, which runs from June 1-26. Discussions during the call centered on wealth momentum and evolving Chinese cross-border regulations, alongside net interest income (NII) “evolution”, asset quality and contribution momentum from Great Eastern Holdings (GEH).
“OCBC highlighted that wealth remains a key growth driver, with limited near-term impact from tighter cross-border rules; insurance momentum remains intact; NII is expected to decline y-o-y but could remain relatively stable sequentially; and asset quality remains stable with no immediate concerns,” the report points out.
