The Weekly News Update is a weekly roundup of business news from around the Asia-Pacific region, covering Fusion Consulting's core industry practices: chemicals, consumer & retail, financial services, industrial & logistics, information & communication technology, life science and media & leisure. If you have colleagues or friends who may be interested in subscribing, please forward this email to them and copy knowledge@fusionc.com.       Merging with the Mainland: China's M&A opportunities   M&A activity in China continues to surge, thanks to strong economic growth and  private equity activity. With regulatory changes in 2006, several sectors should see  further M&A action in 2007 and beyond. Find out where the opportunities lie.

Financial services

India - StanChart buys Indian stakes Source: Financial Times, 3 March 2008 Standard Chartered has taken stakes of up to 5% in several Indian banks, seeking a foothold in the country in anticipation of the eventual liberalisation of rules restricting foreign ownership. The Reserve Bank of India has capped investment by foreign banks in a domestic private sector bank at 5%. Buyers of such stakes either hope to launch their own takeover bids or gain leverage over rivals' bids if there is consolidation. Among foreign groups with stakes in Indian banks, units of Citigroup hold 12% of Housing Development Finance Corporation, parent of HDFC Bank, while an affiliate of HSBC holds 5% of Axis Bank. Japan - Sumitomo Mitsui to create top Japan credit card firm Source: The Wall Street Journal Asia, 3 March 2008 Sumitomo Mitsui Financial Group aims to consolidate its four credit-card and consumer-credit companies in October 2008, a move that would create Japan's largest credit card company by assets. Sumitomo Mitsui plans to set up a holding company in October 2008 in which it will place four units - OMC Card Inc., Central Finance Co., Quoq Inc. and Sumitomo Mitsui Card Co.  Sumitomo Mitsui is vying with larger Mitsubishi UFJ Financial Group Inc., which this week announced it will increase its stake in an affiliated credit-card company, as banks focus on individuals amid declining lending to companies. Mitsubishi UFJ Nicos Co. is currently Japan's largest credit-card company. Taiwan - Insurers can raise overseas investment ceiling to 45% source: Asia Pulse, 3 March 2008 Insurance companies in Taiwan are now allowed to raise their overseas investment ceiling from the current 35% of their total funds to 45% in two stages within a period of two years. The Cabinet-level Financial Supervisory Commission (FSC) revealed that an insurance company can apply to increase its investment abroad by 5% in the first year and another 5% in the second year. Taiwan's life insurance companies currently have total funds of NT$7.5 trillion (US$242.9 billion), with the total growing by over NT$1 trillion (US$32.4 billion) each year. In 2007, Taiwan's insurers invested NT$2.3 trillion (US$74.5 billion) abroad, an increase of NT$242 billion (US$7.8 billion) over 2006.     View an example of our experience in this industry. Back to list of articles.  Visit our website to sign up for free intelligence on Asian markets.

This Weekly News Update is a free newsletter, providing a round-up of the week's Asia-Pacific news from our core industry practices. If you have colleagues or friends who may be interested in subscribing, please forward this email to them and copy knowledge@fusionc.com.

Fusion Consulting is a business intelligence consultancy providing clear strategic advice on Asia-Pacific markets. With offices in Shanghai, Singapore and Hong Kong and 400 industry consultants in 16 countries, we conduct custom research and consulting to help companies understand their markets, compete more effectively and grow into new areas of opportunity. Email more@fusionc.com or visit www.fusionc.com for more information.