Mark Austen, the former head of Asia’s biggest bank lobby group, has joined Flint Global to help the political and regulatory consultant firm establish a presence in Asia to advise clients on the region’s escalating geopolitical risk.
(Bloomberg) — Mark Austen, the former head of Asia’s biggest bank lobby group, has joined Flint Global to help the political and regulatory consultant firm establish a presence in Asia to advise clients on the region’s escalating geopolitical risk.
The former chief executive officer of Asia Securities Industry & Financial Markets plans to hire 10 to 20 staffers over the next year or two for the Asia markets, he said in an interview.
Flint is pushing into Asia as tension between the US and China has also enveloped Europe and other big economies such as Canada and Australia. Relations have become increasingly strained since former US President Donald Trump slapped tariffs on China in 2018. Despite some signs of thawing, the current administration has continued a tough-on China line, most recently seeking to restrict access to semiconductor technology.
“What used to be a China-US tension can now broadened to China-West tension,” Austen said. “In the short term, the adversarial stance toward the West has mellowed somewhat. In the medium term, it’s difficult to see the rewind of the relationship at pre-Covid, pre-Trump levels. I think this is here to stay.”
Global banks have in the past few years ramped up in China after the country allowed foreign lenders to take full control of many of their onshore operations. That push has now slowed, or even stalled, as China’s economy slows and political risks increase. Banks including Goldman Sachs Group Inc. and Morgan Stanley last year started cutting China-focused staff.
Austen, who oversaw the bank lobby group during China’s big financial opening, predicts there will be growing demand for outside advice to navigate the difficult landscape.
Lenders that used to rely on local managers are now more compelled to seek second opinions on business strategy and decisions, he said. Local managers tend to give a “much more positive story” on the ground because “their livelihood depends on it” and any negative spin could lead to cut off capital access, he said.
“There’s been a lack of trust between head office and those on the ground in the region,” he said. “They want to get closer to the issue. It’s not so clear Asia is the future and no one is trusting individuals on the ground they used to be before.”
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