China’s June exports hit by weak Western demand

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China’s exports decreased at a faster pace year-on-year in June than in May as Western demand was hit by high inflation and interest rate hikes.

The country’s exports to the United States fell by 23.7% to US$42.7 billon in June from a year ago while exports to the European Union dropped 12.9% to US$44 billion, according to the General Administration of Customs. In May, the figures were only down by 18.2% and 7% to the US and EU, respectively, from a year earlier.

Chinese officials blamed the weakening global demand, protectionism and geopolitical risks for the exports slump. But they said they are confident that China’s external trade will remain stable in the rest of this year due to the country’s efforts to explore emerging markets.

Dongguan factories

Chinese exporters have felt the negative impact of the weakening demand from the West on their orders since late 2022. Although China ended all its Covid rules in January this year, many manufacturers started downsizing or closing their businesses from March.

Media reports said several plastic and electronic parts suppliers, based in Dongguan and Shenzhen in Guangdong province, told their staff that they faced huge operational difficulties due to insufficient orders, serious losses and customers’ arrears. But this is only a tip of the iceberg.

In mid-April, Chinese manufacturers were disappointed to see a decline in the number of buyers from Europe and the US in the Canton Fair, the largest trade show in China. Some exporters said they saw more buyers from Latin America, Africa, Southeast Asia and Russia but these customers may provide lower margins. 

More manufacturers in Dongguan, including a major paper box maker and a 30-year-old textile firm, closed their businesses last month, according to media reports. 

A man surnamed Zhu says in a video posted on June 25 that he’s been trying to find a factory job in Dongguan but has seen only notices that factory owners seek to rent out their properties. He says he knows that some factories are offering workers only 12-13 yuan (US$1.68-1.82) per hour, which he calls too low for anyone to live on. 

Trade with ASEAN also down

Some economists said the West’s call to diversify supply chains from China to Southeast Asia only has a small impact on China’s overall exports. They said China can ship its raw materials and unfinished products to Southeast Asian countries for processing and then send them to western markets.

But China’s exports to ASEAN also contracted – 15.9% and 16.9% – year-on-year in May and June, respectively, as Southeast Asian countries were also struck by the weakening Western demand.

Last month, China saw a decline in its exports to all key trading partners, except Russia and Singapore.

In the first half of this year, China recorded a 3.97% drop in total exports from the same period of last year. This compared with a year-on-year decline of 0.16% for the first five months of this year.

 “The world’s economic recovery is sluggish while risks such as unilateralism, protectionism and geopolitics are growing,” Lyu Daliang, the spokesman for the General Administration of Customs, said in a media briefing on Thursday. “The negative impact of the weakening foreign demand on China’s external trade is lingering.” 

However, he added that while the year-on-year growth of China’s external trade declined in June, the month-on-month growth was stable, meaning that the fundamentals of the Chinese economy are unchanged.

“In recent years, our foreign trade companies have given full play to their subjective initiative to explore new regional markets such as ASEAN and other developing countries, while stabilizing economic and trade exchanges with developed economies,” he said.

“Since the beginning of this year, our country has resumed face-to-face foreign affairs exchanges at all levels. Our ‘home-court’ diplomacy has continued to heat up,” he said. “In the first half, our country’s trade with ASEAN, Latin America, Africa and Central Asia increased by 5.4%, 7%, 10.5%, and 35.6%, year-on-year, respectively.”

Liu said China will continue to diversify its trading partners and expand its “friend circle” in global trade.

In the first four months of this year, China recorded a 15% growth in its exports to ASEAN, partly offsetting a 14.3% decline in shipments to the US and a 4.3% contraction to the EU.

Short-term outlook bleak

A Gansu-based financial columnist writes in an article published on Thursday that China’s exports started to decline in May due to the negative effect of the interest rate hikes implemented from last year. He says it’s unlikely that the unfavorable situation will change in the short run since countries such as Vietnam, South Korea and Singapore are also receiving fewer orders.

He says China should boost its economy by stimulating domestic consumption and infrastructure investment in the second half of this year. He says cutting mortgage rates may encourage people to spend more.

Peng Bo, a researcher at the Chinese Academy of International Trade and Economic Cooperation, says in an article published earlier this month that China will face more challenges in external trade in the second half of 2023 as its exports to emerging countries have also contracted from May. 

Peng adds that the decline of China’s exports was partly caused by the relocation of some manufacturers from China to other countries while such a trend will continue for some more time. 

Read: China needs its consumers to consume, workers to work

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Why China will draw investors despite economic warning signs

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China’s exports have suffered their sharpest year-on-year decline since the start of the Covid-19 pandemic, fueling concerns over the growth trajectory of the world’s second-largest economy.

The weaker international demand, which has triggered the drop in exports, comes at a time when the economy is under pressure from a weak property sector and a disappointingly slow Covid rebound after controls were dropped at the start of the year. In addition, youth unemployment is at its highest level on record.

But despite these challenges, China remains an appealing destination for investors. 

One of the most compelling reasons investors are attracted to China is its massive market potential. 

With a population of more than 1.4 billion and a growing middle class, China offers a vast consumer base for businesses to tap into. Rising incomes and increasing urbanization have fueled demand for various products and services, providing ample opportunities for investors across sectors such as technology, health care, and consumer goods.

The People’s Republic also has a proven ability to navigate and adapt to economic challenges. Despite recent headwinds, including trade tensions and the pandemic, China has shown remarkable resilience. 

The government’s proactive policies, such as stimulus measures and targeted reforms, have effectively supported economic growth and stabilized market conditions. This track record of adaptability instills confidence in investors, as they believe that China can effectively address and overcome future obstacles.

Tech advances

The country’s emphasis on research and development, coupled with significant investments in such emerging technologies as artificial intelligence, fifth-generation (5G) telecom, and biotechnology, has propelled China to the forefront of technological advancements.

Investors recognize the immense potential in these sectors and are eager to capitalize on the nation’s technological prowess, which offers unique opportunities for high returns.

Another major plus for investors is China’s commitment to infrastructure development, which is unparalleled. For example, the Belt and Road Initiative (BRI) demonstrates its ambition to connect economies and boost global trade.

This initiative has the potential to open up new markets, enhance logistics networks, and facilitate economic integration, making it an attractive prospect for investors.

Investors are also fully aware of China’s economic model, which is gradually shifting from export-driven growth to one fueled by domestic consumption. This transition presents investors with a new set of opportunities as the Chinese population becomes increasingly affluent and consumption-oriented.

Companies that cater to the evolving tastes and preferences of Chinese consumers stand to benefit immensely from this paradigm shift, prompting investors to focus on sectors such as e-commerce, entertainment, and luxury goods.

While Chinese policymakers have so far stopped short of large-scale stimulus, instead easing key interest rates last month to support growth, the government has previously shown a strong commitment to economic reforms aimed at improving the business environment and attracting foreign investment. 

I’m confident that should the situation not show signs of steady improvement, officials will announce a stimulus package.

The media in recent weeks have been full of stories about China’s economic challenges. However, investors are likely to see beyond the short term and look for the long-term potential.

Nigel Green is the founder and CEO of deVere. Follow him on Twitter @nigeljgreen.

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China’s June exports fall 12.4%, imports drop 6.8%

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Policymakers are now reckoning with the prospect of prolonged slower growth in the world’s second-largest economy of around just 3 per cent annually, according to economists’ forecasts. That is less than half the rates typical throughout recent decades and creates the feel of an economy in recession. Chinese factory activityContinue Reading

Youths’ desperate ‘four no’ attitude worries China

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The Chinese government is being called upon to take action to stimulate the economy and create jobs at a time when young people in substantial numbers have adopted an attitude that’s termed the “four nos”: no interest in dating, getting married, buying a home or having a child.

When National Bureau of Statistics spokesperson Fu Linghui said on June 15 that only about six million people between 16 and 24 in China were still searching for jobs, he did not count the 11.6 million new graduates about to enter the job markets.

His figure also excluded the many in their 30s who’ve been suffering from unstable income. Some of these people now refer to themselves as the youth of “four nos,” a trending term on the internet in China.

“A lot of people expect their partners to be homeowners, but property prices are really too high,” a 30-year-old man says in an interview with a video channel. “It’s not that I did not work hard – my hard work did not produce good results,” he says, adding that he has worked for a small food delivery firm in Beijing since 2020 but is owed 20,000 yuan (US$2,791) in service fees. A decade ago he could afford to date but now he can’t, he says, – and if he has children, they will suffer in this world.

The video was originally posted on a channel called “Under the Moonlight” on Bilibili, a Shanghai-based video-sharing website, in April. It was then blocked. It is still available on social media overseas.

Lying flat. Image: Twitter

Some young Chinese adopted a “lying flat” attitude a few years ago as they were suffocated by the societal pressures upon them to overwork and over-achieve in order to buy homes and have families. Now many are suffering from unemployment or unstable income and want to be free from financial burdens.

A document, reportedly issued by the Communist Youth League of Guangzhou City, says a recent survey interviewing 15,501 college students and young workers found that 1,215, or 8% showed characteristics of having the “four nos” attitude. It called on all parties in the society to try to change these youngsters’ attitude into “four wants.”

This came after the National Bureau of Statistics said on June 15 that the unemployment rate of people aged between 16 and 24 in China’s urban areas had reached 20.8% while that of those aged between 25 and 59 was 4.1% in May.

The Chinese Academy of Social Sciences’ Institute of Finance and Banking said in a report on Tuesday that many highly-educated young people could not find proper jobs as the property, internet and tutorial sectors have been hurt by the government’s regulatory rules in recent years.

“A series of tightening measures launched in 2021 has helped regulate the property, internet and tutorial sectors but at the same time hurt them seriously,” Zhang Chong, a researcher at the institute, said in a media briefing in Beijing on Tuesday. “Although the number of unemployed people in these sectors has fallen this year from 2022, it still stays at a high level.”

“Due to an industry upgrade, China’s labor market has undergone significant changes with a stronger focus on service industries and a decline in manufacturing jobs,” Zhang said. “This trend has hit many young people.”

He said many highly-educated young people found themselves mismatched with jobs in the market, where the emphasis is on technician skills, not academic results. Besides, he said, slowing economic growth, the delayed negative impact of the pandemic on the service sector and the use of robots and artificial intelligence also pushed up China’s jobless rate.

For Chinese graduates it’s hard to find jobs. Image: China Daily

Zhang suggested that the government should use monetary and fiscal policies and supportive measures to boost the Chinese economy and create new jobs. He said it’s also important to support property developers and change the education system to help students fit into the job market.

Low fertility rate

China’s Ministry of Civil Affairs announced last month that a total of 6.83 million couples got married in 2022, a decrease of about 800,000 couples from 2021. The 2022 figure is also the lowest since 1986.

The number of couples getting married has been declining since 2014. It fell gradually from 13.47 million couples in 2013 to 9.47 million in 2019, and further down to 7.64 million in 2021.

He Dan, director-general of the China Population and Development Research Center, said China’s fertility rate fell to 1.07 last year from 1.52 in 2019. It means a woman only gives birth to about one child in her whole life. A threshold of 2.1 is required for an expansion of population.

China’s latest fertility rate is even lower than that of Japan, which fell for the seventh year to 1.26 in 2022. Population researchers said many young Chinese couples were scared off by the high costs of living and child-raising.

Back in mid-2021, the Chinese government encouraged young families to have three children by offering them tax exemptions, suppressing property prices and banning tutorial classes on holidays.

That last was supposed to cut down the advantage wealthier families had in paying for tutoring and thus in getting their kids into the top schools. Wealthy families can pay for tutorial classes with ease. Middle-class families can afford them but the competition is endless, like a nuclear arms race.

Chinese attend a tutoring session in preparation for the annual admission examination. Photo: Asia Times files / AFP / Wang feng / Imaginechina

Now local in-person tutorials are banned and China-based tutors have no jobs. Wealthy families pay overseas tutors for online classes.

The measures failed to prevent China from experiencing in 2022 the first decline in its population in 61 years. China’s population decreased by 850,000, or 0.06%, to 1.412 billion at the end of last year from a year earlier, the National Bureau of Statistics (NBS) said in January this year.

China lost its title of the world’s largest population to India, which saw its population increase by 9.6 million, or 0.68% year-on-year, to 1.417 billion last year.

The ‘four wants’

Some netizens say the government and party are not giving what young people want. The demand is for dwellings, stable jobs and subsidies to raise families in urban areas but the authorities instead ask them to help upgrade the rural areas.

On February 20, for example, the Communist Youth League in Guangdong Province launched a three-year plan that aims to arrange 300,000 young people to work in rural areas between 2023 and 2025. It said it expects that 10,000 of them will continue to work in the rural places while 10,000 others will start businesses there.

A Chinese writer says in an article published on Wednesday that the Communist Youth League in Guangzhou wants young people to have a “four wants” spirit but he thinks chanting slogans is not helpful. He says it’s important for the government to understand why young people have a pessimistic sentiment.

Read: China’s demographic timebomb starts ticking down

Read: China needs its consumers to consume, workers to work

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Overseas job swindles skyrocket

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The number of people duped by illegal job brokers to work overseas and the damages incurred have both soared in the past eight months, according to the Department of Employment (DoE).

The sharp rise comes when the demand for Thai workers in the international labour markets has increased in the post-Covid-19 pandemic period, said Phairoj Chotikasatien, director-general of the DoE.

From October last year to early this month, at least 471 people were conned out of a total of 32.75 million baht they paid to illegal overseas job recruitment agencies for non-existent placement services, said Mr Phairoj.

These overseas job scams were found to involve a total of 142 fake job recruiters, he said.

Compared to the period from October 2021 to early July 2022, 217 victims were duped with damages estimated at 16.6 million baht.

South Korea, Australia, Japan, Canada and Sweden topped the list of countries popular with job seekers who are often conned via bogus online job advertisements, he added.

Most of the victims were overseas job seekers from Khon Kaen, Udon Thani, Nakhon Phanom, Chaiyaphum and Pathum Thani, he said.

The rise in overseas job scams has occurred despite DoE efforts to educate job seekers about legal and safe channels to apply for overseas jobs through certified recruitment agencies. At the same time, the department has cracked down on illegal job brokers, he said.

Anyone recruiting people to work overseas without a proper permit issued by the DoE risks a three to 10-year prison term, a fine of between 60,000 and 200,000 baht or both, he said.

Illegal job advertisements on the internet and social media are punishable by up to three years in prison, a maximum fine of 60,000 baht or both, he said.

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AC Ventures’ ESG Head Lauren Blasco Recruited by ASEAN Business Advisory Council for Carbon Center of Excellence

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Will serve a five-year term advising public and private stakeholders on voluntary carbon markets.
ASEAN Alliance on Scaling Carbon Markets to be launched, aims to scale up voluntary carbon markets across ASEAN

The ASEAN Business Advisory Council (ASEAN-BAC) Green & Sustainable Working Group has inducted AC Ventures’ Principal and Head of ESG Lauren…Continue Reading

China banks under pressure as local debt crisis mounts

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Large Chinese banks are under pressure from Beijing to sacrifice their margins and extend new loans to cash-tight local government financing vehicles (LGFVs).

Bloomberg reported that state banks have in recent months been offering LGFVs loans with a maturity period of 25 years, instead of the normal 10 years. Some of the loans came with waivers on any interest or principal payments for the first four years, though the interest will be accrued for later payment, unnamed sources were quoted as saying in the report.

Since the Bloomberg report appeared on July 4, the Industrial and Commercial Bank of China (ICBC) and the Agricultural Bank of China’s shares have fallen by 15.1% and 15.6% respectively. The Bank of China’s stocks have lost 12.7% while the China Construction Bank has declined 14% over the same period.

Some analysts surmised that the central government is dumping local debt problems on the big banks by making them lend more to developers and expand their loan books generally.

The People’s Bank of China (PBoC) said on July 11 that local financial institutions extended 3.05 trillion yuan (US$423 billion) worth of new loans in June, compared with 2.8 trillion yuan a year ago in the same month. The figure is above economists’ forecasts of 2.3 trillion yuan.

The Shanghai Securities News said on July 11 that China is expected to accelerate its policy roll-out in order to promote the “stable and healthy” development of the beleaguered real estate market.

Wang Qing, chief macro analyst at Golden Credit Rating, said policymakers may take further measures such as relaxing property purchase and mortgage rules as well as cutting mortgage rates to achieve a “soft landing” for the property market.

Goldman Sachs in the crosshairs

The recent downward pressure on Chinese bank shares was fuelled partly by a Goldman Sachs report published on July 5 that downgraded five Chinese lenders to “sell” ratings based on various downcast assumptions.

After being criticized by Chinese media, Goldman Sachs said on July 6 that its research report is not bearish as it had also rated four Chinese banks as “buy” and three others as “neutral.”

“Goldman Sachs’s report has made some investors worry about China Merchant Bank (CMB)’s asset quality,” a CMB spokesperson told the Shanghai Securities journal on July 10. “The report used data from the 2022 annual report, without any new numbers,” the spokesperson claimed.

The spokesperson also said the report was misleading as it has made errors in its calculations of CMB’s and LGFVs’ data.

Goldman Sachs has a “sell” on China Merchants Bank. Image: Twitter

He said CMB’s on-balance sheet local debt amounted to 132.56 billion yuan, or about 2.32% of the bank’s total loans, at the end of 2022. He added that the size of the bank’s LGFV loans is small and far below Goldman Sachs’s estimation of one trillion yuan. He asserted the bank’s overall risk exposure to local debt is manageable.

Other state banks have not yet commented on the Goldman Sachs report.

The Shenzhen-based Securities Times on July 7 published an article with the title “It’s undesirable to misunderstand the fundamentals of Chinese banks.” It said the Goldman Sachs report is misleading as it used “pessimistic” assumptions to recommend selling Chinese lenders’ shares. 

It noted that the PBoC launched 16 measures in November to ensure stable and healthy growth of property markets. It said due to the lagged effect of these measures, banks may still record more non-performing loans (NPLs) this year but their risk associated with LGFV loans is declining not rising. 

On Monday, the PBoC extended the implementation period of the 16 measures from this month to the end of 2024, aiming to help property developers and homebuyers borrow money more easily. 

No bailout?

There are two kinds of local debt in hina. Local governments are given an annual quota by the Ministry of Finance to issue bonds, which they rely on taxes, fees and land sales to pay. These bonds are welcomed by state banks as they are collateralized with high-quality assets and backed by the central government.

China’s outstanding local government bonds rose from 30.47 trillion yuan at the end of 2021 to 35.06 trillion yuan at the end of last year. The 2022 figure included 14.39 trillion yuan of bonds for “general purposes” and 20.67 trillion yuan for “special projects.” 

Local bonds for general purposes have 8.5-year maturities on average while those for special projects have a 10-year-maturities. The two categories together had an average coupon rate of 3.39% at the end of last year.

Another kind of local debt are LGFV loans. Most local governments set up LGFVs to finance their infrastructure and city renewal projects. They rely mainly on land sales revenue to repay their LGFV loans.

Homebuyers in China have been refusing to make mortgage payments. Image: Twitter Screengrab

Most of these LGFV loans, which often lack transparency, are off-balance-sheet items for their lenders. Chinese media estimated that all outstanding LGFV loans in China amounted to 65 trillion yuan at the end of last year, up from 56 trillion yuan at the end of 2021. 

On January 8, Chinese Finance Minister Liu Kun was quoted as saying by the National Business Daily that the central government will not bail out heavily-indebted local governments as it follows the principle of “all parents raise their own children.” Liu also said, however, the central government plans to launch a system for LGFVs to default.  

In the intervening months, Guizhou, Guangxi and Yunnan provincial governments  have said they cannot resolve their local debt problems and may default if Beijing does not intervene.

Property crisis

Some economists said the current local debt crisis is a result of the property market collapse that began in July 2021.

Li Chao, chief economist at Zheshang Securities, said in an interview earlier this year that the ongoing property crisis is having a negative impact on local governments and LGFVs. He said the central government should avoid a situation where the property and local debt crises form a vicious cycle and create systemic risks to the banking system.  

Last month, more economists and property experts called on the central government to stimulate home prices and resolve local debt problems.

An article published last month by a Henan-based columnist said that if local governments fail to generate enough revenue from land sales, they should sell their state-owned enterprises.

Read: China urged to boost home prices or face recession

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SUSTAINABLE FINANCE POLL 2023: Asian debt markets sharpen ESG focus | FinanceAsia

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It’s looking increasingly like the time for sustainable finance to shine. After a fall in the year-on-year volume of green, social and sustainability (GSS) instruments globally during 2022, a rebound is forecast this year – to around US$1 trillion in issuance, forecasts S&P Global.

Asia Pacific (APAC) is well-placed to capitalise on this upswing. S&P Global’s projections, for example, are that GSS issuance volume in the region will jump by as much as 20%, to reach US$240 billion, roughly a quarter of the global landscape.

The longer-term story looks promising, too, especially amid ambitious climate goals. Even in South-east Asia alone, about US$180 billion needs to be invested in clean energy projects every year until 2030 to keep the transition journey on track, based on the International Energy Agency’s Sustainable Development Scenario. Putting this in context, from 2016 to 2020, investment in clean energy was $30 billion per year, on average.

Adapting to climate change is certainly a key driver. But according to more than 100 investors and borrowers in APAC who took part in the 6th annual poll by ANZ and FinanceAsia in April and May 2023, multiple dynamics indicate an ever-bigger role for GSS instruments.

Among the key factors is a mix of policy and regulatory initiatives to foster greater transparency. This should, in turn, boost investor demand and issuer appetite. At the same time, as this segment of the region’s capital market continues to mature, active GSS bond investors and issuers can expect greater potential for newer formats of issuance to help bridge social and environmental priorities such as biodiversity and gender equality.

10 top takeaways from the survey

  1. 92% of all respondents have integrated GSS factors within their strategy, with 77% confirming that the market volatility over the past 12-18 months either hasn’t changed or has increased their focus on GSS.
  2. Nearly half (49%) of investors now have their own in-house ESG research and analysis capability, a notable increase from the 42% poll finding 12 months ago.
  3. 70% of investors have some type of experience with sustainable finance, with bonds much more popular than loans.
  4. While just under one-third of investors have exposure to transition finance instruments, another 45% are interested in investing in them, either in the next year or over the medium to long term.
  5. Although 92% of investors haven’t yet invested in Orange (gender equality) bonds, half of them say they would do so if they were more widely available.
  6. 88% of investors and 90% of borrowers believe further regulation of sustainability and sustainable finance would have a positive impact on the market overall.
  7. 49% of investors and 41% of issuers say a ‘greenium’ of at least 4 bps is typically priced-in to new GSS bond issues.
  8. Alignment with sustainability objectives, better access to capital and investor diversification are the top three drivers for issuers of GSS instruments.
  9. Time, availability of targets and set-up cost are the biggest hurdles to issuing GSS instruments.
  10. Only 19% of borrowers have never issued a GSS instrument – compared with 64% in last year’s poll.

Read more survey findings and analysis here

 

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FinanceAsia Volume Two 2023 | FinanceAsia

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By now, most of our subscribers will have received print editions of the latest FinanceAsia Magazine: Volume Two 2023. 

Over the course of the summer, we look forward to sharing online our in-depth magazine features, including the detailed rationale behind our jury’s selection of winners across our recent flagship FA Awards process.

You can access the full online edition here.

To whet your appetite, read on for our editor’s note.

Positive predictions

As a snake (according to the Chinese zodiac), I have so far fulfilled my Year of the Rabbit prophecy in securing opportunity for career growth within the Haymarket Asia business. A successor will soon have the good fortune to step up as editor in my place, as I become content and business director and oversee the editorial strategy of our finance publications: FinanceAsia, CorporateTreasurer and AsianInvestor.

It is said that those born in 2023 will be blessed with vigilance and quick-mindedness. Very useful personality traits, I would think, as artificial intelligence (AI) advances globally, at pace. We are witnessing great development in this field in Hong Kong – and across the wider Asian economy, as emerging tech becomes the next positive disruptor and the capital markets work to respond through evolving regulation and new listing regimes.

In this summer issue, Christopher Chu delves into the value disruption put forward by generative AI, with consultants estimating its worth to breach $16 trillion by 2030. He explores its sophistication and how its potential is interwoven with political factors, while questions are posed around data ownership.

Also intertwined within the realm of transformative technology, is this edition’s flagship interview with BNP Paribas’ CEO for Asia Pacific, Paul Yang. He shares his journey navigating a career path that has taken him from IT coding in Paris, to leadership of the bank’s Asia Pacific business. He offers insights around his accomplishments to date and details plans to progress the bank’s 2025 Growth, Technology and Sustainability (GTS) strategy.

Reviewing activity across Southeast Asia, Liza Tan inspects the market’s prominent position in the ongoing start-up story, through assessment of the current venture capital (VC) fundraising landscape. Her discussion with experts asserts that fintech is inherently fused with human approach and that quality conversations and connections are key to future success.

Indeed, as FinanceAsia’s recent in-person awards celebration underlined, we have much to look forward to in the second half of the year and it is the human elements involved in dealmaking that have capacity to shape the road ahead. I think we all agree that recognising and nurturing talent is vital and so I hope you enjoy reading our evaluation of market resourcefulness, ingenuity and skill that informed the jury’s selection of award winners, amongst truly outstanding competition.

Finally, Sara Velezmoro and I explore the outlook for Asia’s debt capital markets – investigating what opportunity is on offer alongside the changing environment; and whether the momentum surrounding Japanese equities can be sustained, if the government were to reverse yield curve control.

Amid uncertainty we must focus on potential, so please join me in acknowledging the positive strides being taken by Asia’s market movers.

Ella Arwyn Jones

(Please feel free to send feedback or suggestions to [email protected])

 

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