SEB Asia

Corporate Bulletin
ASIAN RECOVERY- PLEASE HOLD THE LINE
ASIAN RECOVERY- PLEASE HOLD THE LINE Asian countries are being squeezed by weak international demand. Nevertheless, we believe in reasonable growth in Asia over the next two years. Read more on page 2. THE RENMINBI, FORWARD CURVES AND EXPECTATIONS The onshore USD/CNY market is getting more balanced in terms of positioning and the previous one way bet on a stronger CNY is over. Read more on page 4 NEW FX TRADE PAYMENT REGULATION AND FOREIGN DEBT REGULATION IN CHINA To incentive cross-border trading activity, the SAFE has issued a new FX trade regulation concerning trading in goods. The PBOC has also announced new detailed regulations regarding FDI and updates on foreign debt in CNY (CNH). Read more on page 5. INDIA, ANY POSITIVE NEWS? Looking at India today its difficult to know where to start. Corruption scandals in various sectors, power outages affecting over 600m people, political standstills etc. Does the country see itself as experiencing difficult times? Read more on page 8. DIM SUM BOND MARKET UPDATE Over 140bn CNH have been issued in the dim sum bond market in H1 2012. Among the issuers was SEK issuing CNH 650m 3y at 2.375%. Read more on page 9.
Currency forecasts
Current USD/CNY USD/KRW USD/IDR USD/SGD USD/INR USD/JPY USD/SEK USD/NOK EUR/USD 6.3100 1121.00 9565 1.2285 53.4 78 6.58 5.76 1.2927 1M 6.32 1125 9600 1.22 55.00 79 6.37 5.57 1.31 Q4 12 6.28 1110 9550 1.21 54.50 79 6.41 5.51 1.28 Q1 13 6.26 1100 9500 1.20 54.00 80 6.44 5.52 1.25 Q2 13 6.25 1090 9400 1.20 53.50 83 6.67 5.83 1.20 Q3 13 6.22 1070 9300 1.19 53.00 84 6.76 5.88 1.19 Inflation (average) China Korea* India Indonesia** 3.3 3.0 12.0 5.1 2.8 5.4 4.0 8.6 5.4 5.2 3.1 2.3 7.2 4.5 4.4 3.5 2.9 7.0 5.2 3.2 GDP Growth China Korea* India Indonesia* Singapore* 10.4 6.3 10.6 6.2 14.8 9.3 3.6 7.2 6.5 4.9 7.8 2.6 5.8 6.1 2.2 8.0 3.5 6.0 6.1 3.8

THURSDAY 27 SEPTEMBER 2012

CONTACTS Beijing Fredrik Ektander +86 10 65900120

fredrik.ektnader@seb.se

Delhi Jrgen Sjstrm +91 1143623096

jorgen.sjostrom@seb.se

Hong Kong Carl Christensson +852 31592888

carl.christensson@seb.se

Shanghai Fredrik Hhnel +86 21 53966681

fredrik.hahnel@seb.se

Singapore Bo Carlsson +65 63501381

bo.carlsson@seb.se

Macroforecasts
2010 2011 2012 2013

Spot and NDF rates

spot China Korea India Indonesia Malaysia Taiwan 6.3100 1121.00 53.4000 9565.00 3.0780 29.38 1M 6.3465 1123.00 53.7000 9635.00 3.0776 29.37 Q4 12 6.3575 1127.00 54.1000 9720.00 3.0870 29.30 Q1 13 6.3800 1131.00 54.9000 9810.00 3.1020 29.22 Q2 13 6.4000 1135.00 55.6000 9985.00 3.1160 29.13 Q3 13 6.4200 1139.00 56.3000 10040.00 3.1260 29.05

Singapore*

Central Bank Policy rates

Sep. 25 Q4 12 China Korea India Indonesia China RRR big banks *Source Consensus Economics 6.0 3.0 8.0 5.75 20 5.5 2.75 8.0 5.75 18.5 Q1 13 Q2 13 5.5 2.75 7.75 5.75 18.5 5.5 2.75 7.5 5.75 18.5

You can also find our research materials at our website: www.mb.seb.se. This report is produced by Skandinaviska Enskilda Banken AB (publ) for institutional investors only. Information and opinions contained within this document are given in good faith and are based on sources believed to be reliable, we do not represent that they are accurate or complete. No liability is accepted for any direct or consequential loss resulting from reliance on this document. Changes may be made to opinions or information contained herein without notice..

Heading

ASIAN RECOVERY PLEASE HOLD THE LINE

Asian emerging market (EM) countries are being squeezed by weak international demand and previous economic austerity measures. Purchasing managers indices (PMI) have recently fallen in many countries, while GDP growth decelerated further during the second quarter. The slowdown is most apparent in heavily export-dependent economies like Singapore and Taiwan. Intraregional differences are obvious with many ASEAN countries showing greater resilience than North East Asia and India. Despite expecting a stabilisation and/or modest recovery in economic activity during the third quarter, more forward looking PMI components, including new orders generally and new export orders in particular, provide little reason to expect an imminent turn around.
GDP growth - selected countries
GDP, year-on-year percentage change
20 15 10 5 0 -5 -10 09 10 11 12 20 15 10 5 0 -5 -10
60.0 57.5 55.0 52.5 50.0 47.5 45.0 42.5 Jan Mar May Jul 11 Sep Nov Jan Mar May 12 Jul

Manufacturing PMI, SA
Markit, except for China

60.0 57.5 55.0 52.5 50.0 47.5 45.0 42.5

China India

Indonesia Malaysia

South Korea Singapore

Source: National statistical offices

Taiwan South Korea Singapore

India Global China (official)

Source: Reuters EcoWin

Graph: Quarterly GDP, Asia 5 + Malaysia

Graph: PMIs selected countries.

Nevertheless, we believe strong domestic demand, driven by more accommodative economic policies, low household debt and good wage growth will help sustain reasonable growth in Asia over the next two years. Evidence of this is likely to show up during the course of autumn with early signals already manifested through a stabilisation in the Chinese housing market and a pick up in car sales, for instance. While not underestimating risks concerning the resolution of the Euro-zone, US and Japanese debt crises, corrective steps are being taken including greater involvement by central banks. As a result, risks are more symmetrical, increasing risk appetite this summer and early autumn. Indeed, shortterm speculative positioning is, by now, vulnerable to disappointments during the forthcoming remedial process. Still, although over the next couple of years, GDP increases in emerging Asian markets will be below trend, we expect the region to remain resistant to weak US and European economies, supporting the rest of the global economy. Apart from the Euro-zone debt crisis and the so-called US fiscal cliff, key risks for emerging Asia include tensions in the Middle East (potentially driving oil prices significantly higher) and the recent increase in worldwide food prices. Both could significantly complicate implementation of accommodative monetary policies throughout much of the region. However, in our main scenario we expect oil prices to remain near current levels and future food harvests to normalise. Consequently, upward pressure on headline inflation should be temporary. Furthermore, with the commitment of central banks to fighting inflation widely recognized, we believe monetary policy will be eased further in coming months and quarters. Also, significantly, if the global economy underperforms our main scenario, we see plenty of scope for additional monetary and fiscal stimuli in most of the region.
C P I in s e le c te d E M c o u n t ri e s , % y/y
9 8 7 6 5 4 3 2 1 05 06 07 08 09 10 11 12 13 14
C o re H e ad line

9 8 7 6 5 4 3 2 1

Graph: CPI in selected EM countries % y/y

2

Heading

Rightly, global attention is focused on developments in China where the risk of a hard landing is causing global concern. Q2 GDP growth eased, for the sixth consecutive quarter, to 7.6% y/y from 8.1% in Q1. PMIs have declined while prospective components appear gloomy as shown above. Nevertheless, we see improvements in housing, higher car sales and labour market stability. Soon, monetary and fiscal easing should take effect. After three reserve requirement ratio (RRR) cuts to 20.0% by the largest banks, two rate reductions and increasing open market operations, the 1W repo rate currently stands around 3.5%. Interbank rates have decreased approximately 0.5% so far this year. Importantly, the maximum loan discount banks can provide has increased from 10% to 30% (i.e. 180bps under the 6% floor on 1Y loans). August CPI was still low enough (2.0% y/y, non-food 1.4%) to absorb a temporary food price rise without threatening the 4% inflation target while recent weak data support a further relaxation of monetary policy. Still, wary of sparking another housing market boom we believe policymakers will avoid aggressive easing, cutting rates twice and the RRR three times by year-end. Despite the possibility that our forecast modest Q3 recovery may be further delayed, we do not expect a hard landing. Our growth estimates of 7.8% this year and 8.0% next are roughly in line with consensus. The markets disappointment that China grows by only 8% will fade in favour of a more positive assessment that the new growth pace is both better balanced and more sustainable. Despite inherent risks and opportunities, upcoming changes in political leadership are expected to be smooth.
China - policy rates and RRR
Per cent

USD/CNY spot and 12M NDF

22.5 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0.0

22.5 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0.0 05

6.65 6.60 6.55 6.50 6.45 6.40 6.35 6.30 6.25 Jan Apr Jul 11 Oct Jan Apr 12 Jul

6.65 6.60 6.55 6.50 6.45 6.40 6.35 6.30 6.25

RRR Small banks RRR Big banks Lending rate, 1Y Deposit rate, 1Y

Maximum discount raised from 10% to 30%

06

07

08

09

10

11

12

Source: Reuters EcoW in

USD/CNY 12M NDF

USD/CNY spot
Source: Reuters EcoWin

Graph: Chinese RRR and policy rates

Graph: USDCNY spot and 1Y ND

The Indian economy grew by 5.5% y/y in Q2 after slowing in Q1 to 5.3% y/y, far worse than expected, representing its slowest increase since 2004. Despite stabilizing, the PMI is below its 6-year historic average. Meanwhile leading indicators have fallen. Domestic demand is weak mainly due to lacklustre capital spending. Both industrial production and exports have fallen significantly during 2012. Exports are now lower than during the same period last year, despite major rupee depreciation. The weak monsoon rain season is currently expected to hurt agricultural production. Overall we forecast GDP to increase by 5.8% in 2012, 6.0% in 2013 and 6.5% in 2014.

In d ia - p r o d u c t io n
Y e a r-o n -y e a r p e rc e n ta g e c h a n g e

80 60 40 20 0 -2 0 -4 0 07 08 09 10 11 12

12 11 10 9 8 7 6 5 4 3

G D P (R H S ) M a n u f a c t u rin g

F o o d a n d b e ve ra g e s
S o urc e : R e ute rs E c o W i n

Graph: Indian GDP, manufacturing and agriculture

Heading

THE RENMINBI, FORWARD CURVES AND EXPECTATIONS

The onshore USD/CNY market is getting more balanced in terms of positioning and CNY outlook. It is evident that the previous one way bet on a stronger CNY - and therefore the easy option to maintain unhedged liabilities in USD - is no longer available. Since March this year the USD/CNY fixing has fluctuated between 6.30 and 6.34 while shorter swap market tenors have moved over 900 pips from an appreciation to depreciation scenario. In addition, we also see the results of converging markets with both the NDF and CNH offshore markets largely trading at the same level. The spot rate has traded both on the stronger and weaker side around PBOCs (Peoples Bank of China, the Chinese central bank) daily fixings showing the more balanced demand and supply.
Forw ard Curves China - end March 2012
6.4000 6.3800 6.3600 6.3400 6.3200 6.3000 6.2800 6.2600 Spot 1M 3M Te nor 6M 9M 1Y CNY CNH NDF

There are several reasons why the market has changed its CNY outlook, the most obvious being the countrys deteriorating balance of payments. The central bank targeted foreign trade to increase by 10% in 2012 compared with 20% in 2011. However, so far this year Chinese exports have only increased by 6% over 2011. At the same time, imports since year end are 6.4% higher. The current account surplus, which peaked at around 10% of GDP in 2007, has already fallen below 3%, according to the IMF. In addition it seems that many exporters not are converting their export flows into CNY. USD deposits held by domestics have increased by nearly 70% since year end (see graph below). To a high extent these are export revenues that would previously have been converted into CNY but now kept in USD by the exporters as they foresee a weaker CNY. The more balanced flow picture is in line with the PBOCs desire to stop one way appreciation of the CNY. The PBOC has also increased the CNY flexibility vs. USD, adjusting the band from +/- 0.5% to 1% around the fixing. This is seen as another step in liberalizing the CNY and allowing for higher volatility. The previous one-way short USD/CNY strategy in anticipation of CNY appreciation is no longer valid. However, we regard the recent FX swap move from a discount to a premium to be slightly excessive and recommend anyone long USD to consider hedging at current market levels. We forecast Q1 2013 6.28 and Q3 2013 6.20 against USD.

Forw ard Curves China - end Aug 2012

6.5500 6.5000 6.4500 CNY 6.4000 6.3500 6.3000 6.2500 Spot 1M 3M Te no r 6M 9M 1Y CNH NDF

Please contact Peter Knutzen in Shanghai for further information regarding FX opportunities in China: peter.knutzen@seb.se

Graph: Foreign currency deposits held by Chinese corporates (source Bloomberg)

Heading

NEW FX TRADE PAYMENT REGULATION CHINA

To incentive cross-border trading activity and simplify related complex procedures, the Chinese State Administration of Foreign Exchange (SAFE) issued a new FX trade regulation at the end of June concerning trading in goods which came into effect this August. It signals SAFEs desire to reform the current regulatory system which has operated for more than 10 years. Its principal provisions are as follows: 1) All enterprises (i.e. importers or exporters) are classified in Categories A, B or C based on their cross-border payment track record. We believe most have been assigned to the A category by default. Only a very few companies have been categorized B or C this year. In future, SAFE will review all companies categorization annually. Generally, companies in Category A may enjoy the benefits of new regulation while B and C category companies will face tougher requirements.

2) Export income will no longer require verification (or so-called Hexiao). To improve the traditional processing of export income from goods-related trade, SAFE has announced the abolition of verification (Mandarin: Hexiao ), a major change which will help local Chinese exporters generate export income and secure export tax rebates much faster than before. 3) Import payment documentation has been simplified. Previously, importers were required to provide to their bank full supportive documents including the trade contract, invoice and an import customs declaration form before payment. Now, an importer need only present ANY one of these papers to demonstrate the authenticity of its trading activity. This reform will make client import payments more convenient, particularly where they involve a bank not located in the same city. 4) An importer may now buy foreign currency, sell RMB in advance, and retain and/or deposit all foreign currency in a bank settlement account. Furthermore, a local importer may decide to sell foreign currency back into RMB if the payment does not take place. As a result, an importer may lock-in any currency risk in advance without hedging FX directly.

5) A foreign company investing in China may appoint a local Chinese company as host to open an offshore account on behalf of the entire group in China to receive its export revenue.

In general, these new regulations are positive for those of our clients actively engaged in the import or export of goods and services as they radically simplify previously complex or time-consuming administrative procedures.

Please contact Ramon Wu in Shanghai for further information regarding CNY Financing FX regulations in China: ramon.wu@seb.se

Heading

FOREIGN DEBT TO CHINESE COMPANIES IN CNY

This summer, the PBOC announced new detailed regulations regarding Foreign Direct Investment (FDI) in CNY (also called CNH). Since last year, foreign investors have been allowed to make CNY-denominated FDI (including capital injections and foreign debt) in China. The new updates clarify several practical issues regarding FDIs in CNY. In particular, several differences now exist between the treatment of CNY-denominated foreign debt (including, for example, shareholder loans) and foreign currency-denominated overseas debt as follows:

Foreign Debt in CNY (CNH) Approval Authority Once the borrower possesses a sufficient foreign quota Borrowing Gap *, a Bank can register CNY-denominated foreign debt and open an account

Foreign Debt in Foreign Currency A borrower must initially register with SAFE, which must approve each repayment and FX under Foreign Debt Quota Short Term (up to and including one year): The borrowing gap is consumed by the outstanding amount. The utilized borrowing gap can be released once the loan is repaid. Medium- to Long Term (Exceeding One Year The borrowing gap is consumed by the actual amount incurred. The utilized borrowing gap cannot be released back. Rollover(s) does not consume additional gap space no matter how many times a rollover takes place.

Borrowing Gap Utilization

The borrowing gap is consumed on actual amount incurred regardless of the tenor. Utilized borrowing gap space will never be released again even after repayment.

Renew/Roll Over

The first time rollover will not consume borrowing gap space, though the second and following rollover will. Within the approved business scope including Onshore/offshore loan repayment. RMB Trade Payment. No entrustment loan; No investment on derivatives; No structured deposit; No money transfer except salary payment. No limit but must be reasonable Neither fixed nor structured deposits are permitted. Only a current deposit is authorized.

Purpose

Within the approved business scope, up to SAFEs approval.

Loan Rate Deposit Rate

No limit once accepted by SAFE Usually current deposit rate. A structured deposit is not allowed.

Note: The borrowing gap is the difference between a Chinese companys total investment and registered capital.

Clearly, more clients will consider financing their Chinese subsidiaries through CNY-denominated foreign debt in future, mainly because doing so will: (a) eliminate currency risk and onshore costs; (b) simplify the process as no SAFE approval is necessary; and (c) establish a new CNY funding source for the local borrower concerned. Please contact Ramon Wu in Shanghai for further information regarding CNY Financing FX regulations in China: ramon.wu@seb.se

Heading

INDIA, ANY POSITIVE NEWS?

= Looking at India today its difficult to know where to start. Huge corruption scandals in various sectors of government and industry, power outages affecting over 600m people, political standstills with opposition parties blocking parliamentary business, retroactive laws being implemented scaring away investors, the depreciating rupee becoming Asias worst performing currency in 2012, continued high inflation, large budget deficits, and recently a poor monsoon season which India had been so desperate to avoid, providing as it does some 40% of the countrys annual rainfall.

With all these issues and indeed others, it is hardly surprising debt rating agencies, banks and broker analysts are placing India and its various sectors on negative outlook while urging the government to initiate necessary reforms to improve investor confidence, including boosting current lacklustre annual GDP growth of 6%. However as the saying goes only in difficult times can difficult decisions be taken. The $64,000 question is therefore: Does the country see itself as experiencing difficult times? With India a country of contradictions, there is no simple answer. Certainly, reviewing the situation only a few weeks ago the answer would clearly have been NO. However, on September 14th the Congress Party-led coalition surprised markets by announcing various reforms including (at long last) allowing foreign ownership in the retail sector, and reducing fuel subsidies. In a tough-talking speech, Prime Minister Manmohan Singh emphatically declared the reforms necessary to restore Indian economic growth momentum. However, opposition parties have already challenged this argument, particularly Ms. Mamata Banerjee, leader of the Trinamool Congress Party whose decision to withdraw support for the governing coalition leaves the Congress Party and its remaining allies without a parliament majority. Despite continuing concern regarding Indias slowing economic growth and rapidly increasing budget deficits, the country has so far tended to seek explanations in events taking place internationally rather than at home. Indeed, while its economy remains largely domestically driven, India is becoming increasingly dependent on the world at large. Overall, the current slowdown is still viewed by many as temporary, with medium- to longer term opportunities still intact. In other words, the country, particularly its opposition parties, continues to believe that foreign investors need India more than India needs them. With the 2014 election fast approaching (or even sooner if early elections are called), voters will have to choose if they want budget discipline and implement supply side reforms or retain current popular protectionist policies at whatever (potentially high) cost to the country. Positively, India itself must decide. Contrary to the politicians the Reserve Bank of India (RBI) has been rather active. They have eased overall monetary policy and also introduced reforms such as eased regulations on borrowing from overseas debt markets to support economic growth, enabling non-resident companies to hedge INR, and sought to respond to depreciation by forcing all companies with (non-INR) EEFC accounts (used for imports and exports) to convert 50% of their existing balances into INR within 15 days. Since the launch of the reform package the INR has strengthened quite substantially together with a boost in the equity market. However, despite the recent recovery, the rupee has still been among the worst performing emerging markets currencies and is down by some 8% vs. the USD during the last year. The country singles itself out in the Asian context by its twin deficits in the current account and public sector budget. With the European debt crisis constantly high on the agenda, fiscal sustainability has been an important driver in FX markets. Indias high public indebtedness coupled with the policy paralysis has, hence, inflicted additional pain on the currency. The recent progress on reforms is clearly a step in the right direction but it is being challenged. During the remainder of this year we expect the rupee to remain weak, closing the year at 54.5 against the USD. Next year, as the global recovery progresses, we see scope for the rupee to recover towards 52.5.

Please contact Jrgen Sjstrm in New Delhi for further information concerning Indian-related enquiries: jorgen.sjostrom@seb.se

Heading

DIM SUM BOND MARKET UPDATE

Over 140bn CNH have been issued in the dim sum bond market in H1 2012. In 2011 alone the market totaled CNH 170bn. It remains dominated by Chinese bank issuance in private placement format. This year, the average issue size is smaller than in 2011 though the number of issues has already exceeded the total for all of last year. CNH market developments during the past three months are significant: o o The USD/CNH cross currency swap market has improved, hitting a record high. Many recent issues have been swapped from CNH into EUR or USD. The 3y maturity has improved around 75 bps. Cross currency swap market liquidity has increased significantly. Opportunities now exist for banks and corporates to swap CNH into EUR or USD and issue bonds in the dim sum market. However, there are few arbitrage opportunities and issuers must usually pay slightly above their benchmark curve. Following Londons commitment to become an offshore RMB hub many European-based investors including private banks, central banks and sovereign wealth funds are currently participating as investors. CNH deposits in London continue to grow. A less bullish currency view has turned the market into a credit market rather than a currency market. Investors are currently adopting a more selective investment process.

There were several significant CNH transactions in Q2 2012 as follows: o o o In April HSBC (Aa3/AA-) issued CNH 2bn 3y at 2.875%. Significantly, this was the first CNH deal to be both launched and listed in London, rather than Hong Kong. French utility company Veolia Environnement (Baa1/BBB+) issued CNH 500m 5y at 4.50%. Swedish Export Credit (Aa1/AA+) issued CNH 650m 3y at 2.375%. SEB was co-lead manager for the inaugural CNH bond issue.

In the secondary market dim sum bonds continue to perform well as shown by the Bank of China CNH bond index. However, they faced particularly challenging market conditions in Q4 2011 due to concerns over Europe, spread widening in the Asian high yield market, and a less bullish CNH (FX) view.

BOC CNH Bond Index

102 100 98 96 94 92 90 8/29/2011 9/29/2011 10/29/2011 11/29/2011 12/29/2011 1/29/2012 2/29/2012 3/29/2012 4/29/2012 5/29/2012 6/29/2012 7/29/2012

Please contact Per Nordstrm in Hong Kong for further information regarding CNH bond related enquiries: per.g.nordstrom@seb.se

Heading

DISCLAIMER
This communication is issued by a member of the Trading & Capital Markets department of Skandinaviska Enskilda Banken AB (publ), Singapore Branch (SEB). The information in this communication (the Communication) does not constitute independent, objective investment research, and is not therefore protected by the arrangements which SEB has put in place designed to prevent conflicts of interest from affecting the independence of its investment research. Unless otherwise indicated, any reference to a research report or research recommendation is not intended to represent that report/recommendation and is not in itself considered a recommendation or research report. This Communication is exclusively intended for institutional investors only (CLIENT) and may not be distributed to any other parties without the prior written consent of SEB. This Communication is intended for informational purposes only. Nothing in this Communication shall constitute an offer or a solicitation of an offer to enter into any transaction, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever. Although SEB has used all reasonable endeavours to ensure that the information presented in this Communication is correct, no representation or warranty is made as to its accuracy, adequacy, completeness, fairness or timeliness of the contents. To the extent permitted by law, SEB accepts no liability whatsoever for any direct or consequential loss arising from use of this document or its contents. The information contained herein is subject to change without notice and may differ from the views, opinions and estimates held or expressed by other SEB personnel. Any forward-looking statements, opinions, and expectations are subject to risk, uncertainties and other factors that may cause actual results to differ materially from those set forth in any forward-looking statements herein. Past performance is no guarantee of future results. SEB does not express any opinion on legal, tax, accounting or similar consequences of the transactions contemplated by this Communication. CLIENT is strongly advised to inform themselves about, and retain separate expertise in respect of, such consequences. SEB, its affiliates or employees may, to the extent permitted by law, have positions in, buy/sell in any capacity, or otherwise participate in, any financial instrument referred to herein or related securities/futures/options or may from time to time perform or seek to perform investment banking or other services to the companies mentioned herein. SEB makes no warranty that the Communication will not be distorted as a result of technical or other malfunctions, including but not limited to incorrect transfer, technical inadequacies, disconnection, access, tampering and/or alteration by an unauthorised third party. The distribution of this document may be restricted in certain jurisdictions by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Skandinaviska Enskilda Banken AB (publ) is incorporated in Sweden as a Limited Liability Company. It is regulated by Finansinspektionen, and by the local financial regulators in each of the jurisdictions in which it has branches or subsidiaries.