Analysis
A pioneering journey
The success of Stock Connect has revolutionized market access for cross-border investments since its launch a decade ago. As Hong Kong's financial market seeks its next engine of growth, Stock Connect serves as an inspiration for the potential development of a Hong Kong-Middle East Corridor.
A new landscape
Regulatory crackdowns and changing industry dynamics have triggered a ground-shifting change in China’s mobile payment industry, which has now entered a new era where collaboration and competition co-exist.
Digital assets hub
Hong Kong has made significant strides in reinventing itself as a leading digital assets hub, a strategic step in its plan to rejuvenate the city’s appeal as a global financial centre. But the regulators are walking a tightrope in balancing risks and innovation.
Bhutan: seeking new balance
Grappling with economic and geopolitical challenges, Bhutan’s newly elected government is taking bold steps to pursue an updated framework – gross national happiness 2.0 – for revising the path to sustainable development.
What’s next post T+1?
The US, along with Canada, Mexico, Argentina, Peru and Jamaica, successfully migrated from a T+2 settlement cycle to T+1 in late May, joining India and China as trailblazers in settling trades just one business day after transaction. The total stock market capitalisation of these eight countries combined accounts for over 60% of the global market. This not only spurs other markets to expedite their own transitions to T+1, but also sparkles interest in looking for ways to slash the settlement cycle further.
SWIFT remains dorminant
SWIFT’s expulsion of seven Russian banks from the system two years ago has triggered various solutions to emerge, ranging from multi-country payment networks, digital instant payment systems, fintech solutions, CBDC cross-border projects, to cryptos. This aligns with the global demand for more diversified and less centralised channels for financial transactions.
India’s derivatives trading boom
India’s derivatives market boom has attracted millions of young and inexperienced investors participating in the speculative frenzy. A survey revealed that nine out of ten individual traders lost money in 2023. Indian regulators are concerned about potential market instability.
China’s capital market enters a new phase
The stock market slump over the past three years has prompted China’s State Council to issue a directive in April to reform the markets with nine guidelines. The nation has reached an inflection point in its growth model and would require a shift to high-quality growth rather than absolute pace. The Chinese capital market is now entering a new phase.
Tokyo’s global ambition
Japan has been making concerted efforts to position Tokyo as a preeminent international financial centre over the past six years, and implemented a range of measures to woo the international investment community. The recent surge of foreign investments into its stock markets, supported by favourable macroeconomic conditions, has boosted Tokyo’s ambition.
Spotlight on sovereign wealth funds
There are now 33 state-owned investment funds in Asia, overseeing US$5.4 trillion of assets collectively. It’s not just the developed nations that have formed wealth funds. Less developed ones have followed suit, and some of them have run into controversy.
Asian CBDCs: in search of added value
Worldwide, 130 countries representing 98% of global gross domestic product, are now exploring CBDCs. But thus far, only four developing countries have introduced CBDCs but the adoption rates have been disappointing. Asian countries are experiencing similar challenges.
China’s wealth management products cast off their shadows
China’s bank wealth management products have gone on a path of less-risky development in the wake of a sweeping regulatory overhaul five years ago, but face new challenges and opportunities.
Is ESG just hype?
ESG investors want to “do well and do good”. However, ESG equity funds have been underperforming traditional funds since last year and growth is slowing down in many regions. The “do well” part is not adding up as expected and has raised concerns.
Race for green finance hub
Tokyo, Singapore and Hong Kong are competing to become Asia’s green finance hub as trillions of dollars are expected to go into financing net zero transition.
New era for private funds in China
China is set to overhaul its US$2.9 trillion private funds sector with new rules to strengthen governance and promote innovation. The country’s under-developed private market can play a significant role to help reset the world’s second largest economy.
Up close with ChatGPT
ChatGPT is showing us a glimpse of the power of generative artificial intelligence, which will revolutionalise to all industries.
A new chapter, a win-win collaboration
Singapore and Indian exchanges are collaborating to deepen liquidity of Indian stock markets with a new cross-border trading platform, GIFT Connect, for derivatives contracts.
A tale of two nations: demographic changes of China and India
India is expected to overtake China as the world’s most populous country this summer. This is a significant milestone for both China and India, marking the beginning of a new future for their national development.
Time for an Asian Monetary Fund?
The idea of creating an Asian Monetary Fund is resurrected as nations reconsider the downsides of over-reliance on the US dollar.
Countdown to T+1
Firms worldwide are waking up to implications of T+1 settlement and most are unprepared for the conversion.