Asian cross-border investment surged by 98% y-o-y to US$ 45.2 bn in H1 2017. The increase was partly due to a one-off US$ 13.2bn purchase of a logistics portfolio in EMEA.
Chinese investors remained most active but the composition of buyers changed amid increased scrutiny of cross-border capital flows.
Other major sources of capital including Singapore, Hong Kong, Korea and Japan all saw higher levels of outbound investment. One continuing trend is that of fewer but larger deals.
The Americas and EMEA remained the preferred regions for Asian cross-border investment but turnover within Asia also increased. London, New York and Hong Kong are still the top three destinations.
Chinese outbound investment is still at a nascent stage and is set to continue as a long term trend.
In the short term, the buyer mix is likely to change and the pace of investment may moderate as investors refine their investment strategies and adjust to new rules.
China’s new three-child policy highlights risks of aging across emerging Asia
Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.
Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.(more…)
Clear skies over Asia’s new foreign investment landscape?
Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.(more…)
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