While many buzzwords come and go, FinTech is having a real impact on financial services today and tomorrow. In simple terms, FinTech is financial technology and innovation used to challenge and compete with the delivery of traditional financial services. So what does this mean in reality?
While developed and emerging markets tend to grab the headlines, there is renewed interest in so-called frontier markets. These markets, not without risk, remain relatively untapped and offer the potential for significant long-term gains. Just ahead of unclassified markets, some frontier markets in the Asia-Pacific are on the verge of being upgraded to emerging markets.
The recent announcement that Vietnam’s economy grew by 2.6% during 2021 reflects the challenging times. The Covid pandemic led to strict lockdowns and heavily impacted economic growth. Indeed, the third quarter of 2021 saw Vietnam post negative GDP growth, the first time this has happened since 2000. However, foreign investors are optimistic about 2022, with a particular focus on the technology sector.
Investors and businesses have welcomed the creation of a new Beijing stock exchange that will serve the financial needs of Chinese entrepreneurs. Chinas close association with the Hong Kong stock exchange means this new trading platform could act as a feeder for successful start-ups. Due to the often volatile nature of start-ups and technology companies, the authorities have adjusted some historical restrictions.
When it comes to global markets, the US stock market has a commanding lead over its rivals. When talking about the US stock market, we usually refer to both the New York Stock Exchange (NYSE) and Nasdaq. More trade execution takes place on these two exchanges than any of their global rivals. The Hong Kong Exchange is the fifth largest exchange globally, some way behind its US rivals but more prominent than any of its European counterparts. This article compares the two markets.
The Asia-Pacific region is increasingly being seen as the engine of future global economic growth. Markets in the region offer investors a range of trade execution opportunities, with Hong Kong, in particular, being home to several top stocks, including Alibaba, Bank of China and Tencent. This makes it an attractive market for UK investors looking to diversify out of their home territory.
Low-touch trading combines the direct market access of impersonal electronic trading with the services and oversight of a high-touch trader. This makes it markedly different from electronic trading but helps to reduce some of the possible drawbacks associated with high-touch trade execution.
When it comes to trading on the markets, global clearing, safe custody and settlement services , these will all be handled by your clearing broker. They play a crucial role when it comes to ensuring that trades actually take place.
A key component of Hong Kong’s financial services architecture is the Hong Kong Securities Clearing Company (HKSCC). It acts as Central Counterparty (CCP) and provides clearing services for transactions, facilitating global trade execution.
When it comes to global trade execution in a particular market it can be helpful to understand the broader financial architecture where the market is located. In the case of Hong Kong, a key body is the Hong Kong Monetary Authority. It plays an important role in the financial architecture of the territory and across the broader Asia-Pacific region.