Market Commentary

The BBH 6th Annual Greater China ETF Investor Survey has cast a fascinating light on the world of ETFs and their growing importance to investors. This market is particularly strong in the Far East, where innovation and regulation work hand in hand. So, what were the main findings from the survey, and what can we expect looking forward?

While US and UK interest rates may have peaked, it has undoubtedly been a challenging 2023 for the FinTech sector amid concerns of an economic slowdown. However, some robust trends are still emerging in the APAC region, which bode well for the long-term future of financial technology. So, what are these emerging trends?

For many years now, Hong Kong has been seen as a bridge between the East and the West, attracting substantial international investment and listing a growing number of Chinese companies. While the focus is quite rightly on the Hong Kong Stock Exchange, Hong Kong is a central financial hub in many different areas.

Since the 1980s/90s, when the Japanese economy began to waver, it has been dangerous to call the bottom of the downturn. We have seen several false dawns whereby analysts have suggested the Japanese economy and stock market were ready for expansion. However, there is a growing opinion that fundamental changes are emerging in Japan, and the sleeping giant may be awakening.

While we often focus on the APAC region when it comes to Far East economies, trading arrangements and investment, the Association of Southeast Asian Nations (ASEAN) is mighty. In this article, we will look at the history of the ASEAN trading bloc and its standing on the global stage.

While China has a huge presence in the Far East, it is essential to note the position and influence of Hong Kong and Singapore. Commonly referred to as the “Asian Tigers of Finance”, these cities have transformed into global financial powerhouses. Only when you look at their prominence and influence in more detail do you realise how important they are to the APAC region.

While the continent of Asia provides a degree of intrigue and mystery for overseas investors, much of the potential is overlooked. One country which appears to be misunderstood is South Korea, described by some as the hidden gem of East Asian emerging markets. This article will look at the country’s background, industries and potential for the future.

In the 1980s, Japan was a global powerhouse, with the economy and the business sector leading the way. Financial difficulties, which became more evident in the 1990s, are still filtering through the system, but the region as a whole is reemerging as the home of entrepreneurship. It is debatable as to whether investors are more appreciative of risk or simply more understanding of new technology, thereby encouraging start-ups.

As the APAC markets become more important for global investors, you must understand the power of regional diversification and the different cultures. The impact of regional diversification is evident worldwide, but with the likes of North America and Europe, the effect is not as significant. Simply investing in one APAC country will give you a degree of exposure to the area, but it is vital to consider the broader opportunities.

When looking at the APAC investment market over recent years, FinTech will feature prominently. So-called “financial technology” has been a game changer for the stock market and financial services sector. Many believe that the rise of FinTech in the APAC region is reshaping the investment landscape.