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It's a done deal. Well, it's a nearly done deal. Well, actually, there are quite a few loose ends. Eighteen months after Bank Negara Malaysia first announced the December 31 2000 deadline for the merger of Malaysia's banks, the bank mergers still aren't all done. But the process is underway: 50 of the previous 54 banking institutions have been consolidated (the official phrase) into 10 banking groups, representing 94% of the total assets of the domestic banking sector. Only two groups have been unaffected by the process: Commerce Asset-Holding, the country's second-largest banking group, and Rashid Hussain Bhd (the fourth-largest). One set of merger discussions has been an outright failure: Arab-Malaysian Merchant Bank (AMMB) Holdings' talks with the Sarawak-based Utama Banking Group broke down because the politically-connected Utama Bank (owned by the family of Sarawak's first minister) insists on maintaining management control, and it's not clear how that's possible within Bank Negara's 10-group framework. Talks also broke down between Multi-Purpose Bank and MBf Finance, which is now likely to be absorbed by the Arab-Malaysian Banking Group, though discussions continue. And regulatory approval is pending on the deals by Maybank, Public Bank and Affin Bank (respectively the first-, third- and fifth-largest groups).

It started out as an apparently simple solution to one of the numerous problems affecting crisis-hit Indonesian companies.

Taiwan's financial sector is expected to be the birthplace of at least four new asset management companies (AMCs) in the next six months, thanks to changes to the island's banking law. Taiwan's Chinatrust Commercial Bank and Goldman Sachs started the AMC ball rolling by signing a memorandum of understanding for an asset management joint venture in January. Another experienced AMC operator, Lehman Brothers, aims to establish an AMC by the second quarter of 2001. Meanwhile Morgan Stanley has thrown its hat in the ring and several domestic players, including the local Bankers' Association, are spearheading other AMC proposals. In a banking system weighed down by high non-performing loan (NPL) ratios, the occasional loan scandal and even forecasts of an impending financial crisis, the formation of an AMC framework sounds like common sense. It's odd to discover, therefore, that those in the know are greeting the AMC phenomenon with only muted enthusiasm.

The Asian bond market is gearing up for on-line business. Despite the fact that the market has so far failed to take off, banks and non-bank players seem to believe that being at the front of the queue is better than waiting for the market to mature. Some big names have even gone so far as to invest in two or more Asian bond trading portals. JP Morgan is one. The bank teamed up with Bloomberg to bring JP Morgan Express (JPeX) to Asia. The portal, says the bank, is the region's first fully-automated, real time 'click and trade' on-line bond trading platform. It also has a stake in other bond portals, including Asia-BondPortal (ABP). And the bank is keen to emphasize the uniqueness of its new business. Bernhard Eschweiler, managing director at JP Morgan Chase, explains: "JP Morgan Express allows investors to enjoy instantaneous price discovery and speedy execution time. In addition, the platform trades the most liquid bonds in Asia whereas the others target illiquid bonds and just provide a kind of match making process."

Mandates have been announced for some of the most highly-sought roles of the coming year: the arranger slots on the privatizations of China Telecom and Bank of China. But how are these selections made? By Pauline Loong.

Last year saw some truly groundbreaking transactions, particularly Chinese equity issues and anything at all to do with PCCW. Choosing between them was not easy, but we are pleased to applaud our winners. By Chris Wright.

Technology is fast transforming the world of investment research. Not that long ago, fund managers had to thumb through piles of paper reports, literally metres high, to peruse stock recommendations and updates from brokerages. But computerization is changing all that. Screens have replaced paper. Yet some specialists argue that a paper-and-ink mentality lingers on to the detriment of the more efficient data access made possible by the bolder use of technology. Analysts now have at their disposal not only a range of multi-media solutions comprising text, graphics, audio and video, but also a wealth of distribution platforms including computers, mobile telephones and all manner of digital organizers. These new technologies allow brokerages to provide much more innovative service for their customers – breaking free from the linear, rather static structure of the traditional paper-based research product.

While telecoms providers have been marveling over the potential of 3G licences, Macquarie Bank has been quietly eyeing opportunities in a slightly different market. The bank's venture capital e-commerce incubator, eDivision, is due to launch the world's first on-line exchange for radio spectrum in 2001, known as SpectrumDesk.com. The portal aims to facilitate the secondary market in trade spectrum rights among incumbent companies in Australia, with radio frequency spectrum ranging from 500MHZ to 1.8GHz being auctioned. Explains Peter Cooper, co-founder of SpectrumDesk.com: "Spectrum Desk will operate two types of auction: a seller's auction (where spectrum is listed for sale) and a buyer's auction (where sought after spectrum is listed)." Spectrum rental and other services may follow.

Singapore is busy restructuring and hopeful investment bankers foresee a rash of M&A activity this year – particularly from the country's five banks which have been ordered to divest their non-core assets within three years. Meanwhile, a flurry of activity is expected from government-linked companies as they become mean as well as lean. Fiona Haddock reports.

The Asian bond market is gearing up for on-line business. Despite the fact that the market has so far failed to take off, banks and non-bank players seem to believe that being at the front of the queue is better than waiting for the market to mature. Some big names have even gone so far as to invest in two or more Asian bond trading portals. JP Morgan is one. The bank teamed up with Bloomberg to bring JP Morgan Express (JPeX) to Asia. The portal, says the bank, is the region's first fully-automated, real time 'click and trade' on-line bond trading platform. It also has a stake in other bond portals, including Asia-BondPortal (ABP). And the bank is keen to emphasize the uniqueness of its new business. Bernhard Eschweiler, managing director at JP Morgan Chase, explains: "JP Morgan Express allows investors to enjoy instantaneous price discovery and speedy execution time. In addition, the platform trades the most liquid bonds in Asia whereas the others target illiquid bonds and just provide a kind of match making process."

The expectations of private equity investors have come down to earth with a resounding thump in the wake of the worldwide tech-stock meltdown: even the most aggressive angel funds are closely scrutinizing profit timeframes before taking the plunge. However, interest is picking up in more traditional telecoms sectors, discovers Pauline Loong.

Headhunters wield increasing power over the region's financial institutions – and our own careers. Asiamoney's first headhunters poll reveals which firms and individuals are considered to be the best in the business, and whether our respondents are happy with the services they offer. By Matthew Montagu-Pollock, Olivia Chow and Robert Law.