SG to focus on equity derivatives in Asia

SG, the investment banking arm of French bank Société Générale, has said that it will focus on its Asian equity derivatives business after announcing the closure of its Asia-Pacific equity sales and research activities in a move that will affect 180 employees in the region.

The conclusion was reached "in light of the current market conditions", the bank said in a press statement, adding that it was unable to meet targets of sustainable profitability.

Instead, SG will concentrate on its equity derivatives activities, such as warrants and capital guaranteed products. The bank will also maintain its securities licences and execution capabilities in Hong Kong, Singapore, Taiwan, Korea, India and Thailand, and will close none of its offices in the region.

The bank said that its debt finance capabilities, including securitisation, asset finance, debt capital markets, fixed-income and derivatives, as well as M&A, private placement and futures broking, will remain unchanged.

"SG will pursue its ongoing strategy as a corporate and investment bank in Asia-Pacific, as it is in the rest of the world," said Michel Macagno, chief executive Asia-Pacific at SG. "We are maintaining our presence throughout the region with the view to continue providing our clients with a wide range of innovative and integrated financial solutions in its key areas of strength."