| HONG KONG
HONG KONG May 21 The Asian prime brokerage unit
of Credit Suisse has replaced Morgan Stanley as
the second largest firm servicing the region's $148 billion
hedge funds industry, a survey showed.
The annual survey by industry tracker AsiaHedge, released
this week, found that Goldman Sachs remains Asia's top
prime broker with 179 clients and total assets under management
of $24.6 billion.
Credit Suisse overtook Morgan Stanley by adding 14 new
clients and $2.4 billion in assets over the last year, a first
for any prime broker in Asia, the survey showed.
Prime brokers provide services such as clearing trades and
lending money to hedge funds. The fiercely competitive industry
is going through a rough patch in Asia, where raising capital is
becoming more difficult and many funds are shutting down.
Most hedge funds do not disclose how they divide their
business between prime brokers, making any survey a rough
estimate. A hedge fund may, for example, have five prime brokers
but give 90 percent of its business to just one or two of them.
In Hong Kong and China, the biggest hedge fund centres in
the region, Credit Suisse emerged as the top player, replacing
last year's leader Deutsche Bank AG.
Overall in the region, Deutsche Bank and UBS AG
retained their No. 4 and No. 5 rank respectively, the survey
showed, while Citigroup Inc replaced Bank of America Corp
as No. 6 prime broker in the region.