08 March 2023
While you will often hear reference to the APAC financial market, this comprises many different economies with a wide range of attributes. Taking in the likes of China to Tonga, India to the Solomon Islands, and more will give you an idea of the considerable variation in the market. So what are the main opportunities and challenges for those looking to investin the APAC region?
While Hong Kong and Singapore tend to grab the headlines, numerous opportunities exist across the APAC region. As an investor, many new sectors have been emerging of late, which include:-
We have also seen the introduction of the “stock connect" program, which allows Chinese mainland companies to create a secondary listing on the Hong Kong stock exchange. This encourages local investment and acts as a global platform, opening the door for future fundraising. So it is fair to say that numerous elements of the APAC jigsaw are falling into place!
Currently, the APAC region accounts for more than 60% of the worldwide population, circa 4.3 billion people. When taking a look at the APAC population, there are two main trends which come into play:-
• An expected doubling of the over-60 age group by 2050
Hundreds of millions of unemployed youths in the APAC region will benefit from its growing economic strength. This youthful workforce, often willing and able to move for employment, is crucial to the region's long-term success.
Historically, with a significant number of emerging markets, the regulatory framework of the APAC region has been diverse, to say the least. However, with the APAC economy set to dominate the global market by 2050, there are also signs that internal trade is strengthening. This means that APAC countries must standardise regulatory frameworks and how their legal systems operate.
There will always be regulatory and legal anomalies from country to country, as in Europe, but a more streamlined approach will help strengthen the APAC region's global ambitions. In recent months we have seen several APAC countries striking deals with international partners that will incorporate a degree of regulatory framework adjustments. These include Vietnam and Singapore, both entering a "new trading era" with the UK. This is just the tip of the iceberg!
Those that follow the APAC region will be well aware that the combined economy is set to be a global leader by 2050. As the likes of Singapore and Hong Kong bid to become international hubs in new technology and investment trends, these are exciting times. However, while global trade will increase, with a growing number of new trading arrangements, expertise and cost considerations are also increasing internal APAC trade.
The growing youthful workforce willing to relocate for employment will support an expected increase in trading levels. We then have the issue of an ageing population which will increase demand for accommodation and services in later life. So there is a lot going on!Back to News