Asia was the world’s fastest growing region in the world at the end of 2019. Six months into 2020 and the economic picture has turned grey stained with Covid-19. The International Monetary Fund predicts no growth in the region in 2020, the worst outcome in 60 years. Governments in the region have unveiled unprecedented relief packages to support markets and restore investor confidence as painful lockdowns were put in place to contain the spread of the virus.
The health emergency complicates what was starting to be an already challenging environment. Escalating tension between the US and China has heightened uncertainty in this region. Some countries are likely to be the winners from the fallout from the shifting of the supply chain. But the longer-term implications from the decoupling of the world’s two largest economies are still unclear. For a region that relies much of its economic success on open trade, a change in this growth model could have far-reaching significance, and on its ability to resume from where it left off before Covid-19.
Meanwhile, Asia’s better handling of the health crisis coupled with supportive fiscal and monetary policies, are drawing investors back to the region as they reposition their portfolios and resume the search for yield. Index inclusion is driving inflows into China’s capital markets. A growing base of institutional investors in the region is supporting appetite for investing, including into alternative assets. A growing awareness of ESG is reframing mandates and accelerating corporate Asia’s embrace of sustainability. As markets evolve, and opportunities emerge, what is next for investing in Asia?
The Asset Events, in association with Deutsche Bank, is pleased to be hosting this exclusive webinar to discuss how Asia can retain its appeal as an investment destination amid the current and future market landscape.