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

Australia - Citibank's expansion is on the cards Source: Australian Financial Review, 11 February 2008 As the declining credit cycle forces more credit card issuers to consider outsourcing, Citibank has acquired Suncorp's credit card portfolio, gaining average net receivables of A$225 million (US$204 million) and 100,000 cards to its previous acquisitions of the cards of Credit Union Service Corp and Bank of Queensland. With around A$3 billion (US$2.7 billion) of card receivables in Australia, Citibank is now the fifth-largest group in the sector. But to keep up its rate of growth, Citibank will next have to target the portfolios of St George Bank and National Australia Bank for acquisition. This may be a real possibility, given St George has already sold off its ATM fleet to concentrate its business on customer service rather than owning the infrastructure. Australia - Plastic loses its lustre as cost of living climbs Source: The Sydney Morning Herald, 12 February 2008 Australia's appetite for debt may be slowing amid evidence that credit card interest rates of up to 20% are putting the brakes on borrowing. "Mounting pressure of interest rate hikes and a volatile global economy brought on by America's credit crunch may have caused some Australian consumers to be cautious about taking on new credit card and personal loan debt," said Erica Hughes, Veda's general manager of information services. Applications for new credit cards have fallen to a three-year low. According to the Veda Advantage Consumer Credit Demand Index, applications fell by 3.8% in the six month to December 2007 compared with the same period in 2006. The reduction in demand could also reflect market saturation. Vietnam - Morgan Stanley eyes Vietnam venture Source: Intellasia, 12 February 2008 Morgan Stanley plans to set up a securities joint venture in Vietnam, after an earlier plan to tie up with the state investment company fell through. The bank will be one of the first international groups to get into Vietnam's domestic broking business if it gets the go-ahead. Morgan Stanley earlier sought a landmark joint venture with the powerful State Investment Corporation of Vietnam, which in effect owns the country's big companies. Rival banks, fearing they would be shut out of Vietnam's privatisation programme, strongly opposed the deal, which was scrapped. Vietnam has about 60 licensed domestic securities firms, many partially owned by state-controlled enterprises.     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.