By Mukhtar Hussain, Head of Belt and Road Initiative and Business Corridors, Asia-Pacific, HSBC Belt and Road Initiative offers solid framework for countries big and small to overcome the economic damage caused by pandemic The Covid-19 pandemic has caused a crisis for every economy. At the same time, it has also created an opportunity for the Belt and Road Initiative to prove its value as an international partnership that serves the international good. Amid a fragmented global response to the virus, this network of 138 countries is uniquely positioned to channel trade and investment to developing countries that lack the resources to revive their own economies. China cannot do this by itself, though: no country can. If the initiative is to deliver on its potential to support global recovery, it must be a collective effort. It must also live up to the high standards it has set itself for transparency and sustainability. The International Monetary Fund estimates that some U

Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited   Friction over trade between the world’s two largest economies naturally captures the attention of the business and investment community. The fact that cross-border trade within Asia is already much bigger than Asia’s exchange of goods and services with the U.S. or Europe makes fewer headlines, but is no less important.   It begs the question of what kind of networks, relationships and institutions will shape the future of international trade – and the answer to this question is beginning to emerge.   In partnership with China, which we expect to become the world’s biggest economy by 2030, a growing number of countries are rejecting economic isolation and beginning to work together to develop a new kind multilateralism.   While this process is in its infancy, I believe that a more collaborative approach to connecting economies tha

15 May 2019   Policies targeting key priority areas have been instrumental in China’s economic transformation over the past 40 years, according to HSBC Group Chairman Mark Tucker. Mr Tucker was speaking at the sixth annual HSBC China conference in Shenzhen – a city that embodies the impact of targeted policies. Shenzhen’s Special Economic Zone was first established in the 1980s to stimulate private-sector businesses. It has helped the city grow from a small fishing village into “a bustling metropolis…and the birthplace and home of China’s leading tech companies,” Mr Tucker said. Other policies supporting the country’s continued development include opening up China’s capital markets, the Greater Bay Area and the Belt and Road Initiative, according to Mr Tucker. The Greater Bay Area is designed to foster closer economic ties between Hong Kong, Macau and cities in mainland China including Guangzhou and Shenzhen. The Belt and Road Initiative supports

Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited In the wake of more isolationist political thinking in the West, with many developed economies turning inward, China is reaching out, seeking stronger trade and investment links with its economic partners. China’s Belt and Road initiative (BRI) is a prime example of this reaching out policy. Under the initiative, China aims to trigger demand for materials and goods at home by investing in strategic infrastructure projects abroad, growing economic ties along its old Silk Road to Europe and along newer maritime links in and around Asia and as far away as Africa, covering all potential points in-between. At its heart, the plan is to enhance global supply chains primarily through debt-financed infrastructure projects, across more than 60 countries. China expects annual trade with these countries to be worth US$ 2.5 trillion within a decade [1] – up from US$ 1 trillion in 2015

By Gordon French, Head of Global Banking and Markets, Asia Pacific, HSBC Perhaps it’s inevitable that interest in China’s Belt and Road Initiative tends to revolve around the railway lines, ports and highways that will be constructed in its name. These are the most visible manifestations of the “Belt and Road,” and they evoke beguiling images of the ancient land and sea routes along which silk was once transported from Xi’An to St Petersburg, or tea from Guangzhou to Rotterdam. But sometimes it is the financial dimension of infrastructure in Asia that stands out – because of the sheer scale of what is required. The Asian Development Bank expects emerging Asia to need about US$26 trillion of infrastructure investment between 2016 and 2030. That amounts to US$1.7 trillion a year – and that’s just in Asia, while the Belt and Road encompass Africa and Europe as well. [1] Financing this colossal need for transport, telecoms and energy infrastructure across more t

By Stuart Tait, Group General Manager and Regional Head of Commercial Banking, Asia Pacific With protectionism threatening to dim Europe’s economic lights, Southeast Asia – fuelled by its nation-building infrastructure activity - could be the commercial catalyst that European corporates need. --------- If a spending deficit of US$1.2 trillion in six key Asian economies and a rising tide of protectionist rhetoric in Europe don’t seem the most promising combination of business prospects, think again. Add in China’s ambitious Belt and Road Initiative, and together they make a compelling case of the potential for a multi-year boom in investment and construction that will create entirely new economic ecosystems. Belt and Road at its most basic is a strategy to build the transport links and logistics capacity to boost the flow of trade between China and more than 65 countries in Asia, the Middle East, Africa and Europe to an estimated US$2.5 trillion annually in the co

Peter Wong Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited   To really understand what the “Belt and Road” initiative is all about, it’s best to stop thinking of it as being purely about “roads” and infrastructure “belts.” True, “Belt and Road” will involve building a lot of highways, railways, bridges and other infrastructure – the physical building blocks that will facilitate greater trade flows not just with China’s immediate neighbours, but also with countries as far afield as Europe, Africa and the Middle East. The overall goal is to facilitate regional trade and cooperation by smoothing the passage of goods and services across borders. China expects its annual trade with the more than 65 countries along the “Belt” and “Road” routes to surpass USD2.5 trillion in the next decade, up from about USD1 trillion in 2015.[1] This will bring a welcome boost at a time of anaemic global trade growth

By Mohamed Salama, Country Head of Global Banking, UAE, Standard Chartered   SUMMARY The UAE features prominently as a key component of China’s trade strategy in the AME region, as 60% of China-UAE trade is re-exported to Africa or Europe, thus supporting the Belt & Road Initiative’s mandate. Please click HERE to read more.

SUMMARY There are at least 65 countries involved in the Belt and Road Initiative, but which of them stand to benefit the most, and where has the money gone so far?   Please click HERE to read more.

By Kelvin Lau, Senior Economist, Greater China, Standard Chartered   SUMMARY Launched just five years ago, the Belt and Road Initiative has come a long way in a short time. While the rising risk of prolonged US-China trade dispute looks set to reshape the global trade and investment landscape, we believe that it could fuel B&R’s growth and make it even more important for the long-term development of China and its partner countries.   Please click HERE to read more.

By Philip Panaino, Regional Head, Transaction Banking, Africa & Middle East, Standard Chartered SUMMARY With the Belt and Road initiative fostering financial cooperation and trade in Africa, it makes economic sense for countries along the modern “Silk Road” to use the Chinese currency. The deepening trade relationship between China and Africa clearly points to a long-term story in which the RMB will play a more strategic role in facilitating cross-border trade. Please click HERE to read more.

By Kelvin Lau, Becky Liu, Chidu Narayanan SUMMARY Things are looking up for Renminbi internationalisation in 2018. The CNY has been off to a strong start to 2018, and barring a full-fledged trade war, it is expected that the Chinese authorities will allow further CNY appreciation against a weak USD backdrop while keeping the CNY basket value steady. The Dim Sum bond market is expected to have a revival as gross issuance picked up evidently in January. Please click HERE to read more.

SUMMARY For international investors looking for the next big opportunity, China’s ‘new economy’ companies offer plenty. China’s Belt and Road (B&R) initiative – which involves large-scale infrastructure development along China’s centuries-old trade routes across Asia, Africa, the Middle East and Europe – is part of the solution to ensure Chinese companies continue growing.There is also opportunity for global investors. Please click here to read the full article. By Clive McDonnell

SUMMARY At a time when the US and other global economies appear to have turned their back on globalisation, China is pursuing an ambitious global agenda. And one initiative central to China’s plans is Belt and Road. Please click here to read the full article. By Shuang Ding

By Lan Shen SUMMARY China’s Belt and Road (B&R) initiative – the ambitious project to build infrastructure and expand trading relationships along a new Silk road – has made significant headway in the past four years, and is now well into the implementation stage. So far, 20 per cent of investment in B&R has been in power and 19 per cent in railways, followed by roads, pipelines and other transport. With China’s government prioritising B&R as a key initiative to help open up its economy, there are five trends that show B&R is taking off in a big way. Please click here to read the full article.

By Henrik Raber SUMMARY Asia’s bond markets in general have had a buyout year so far. Asia ex Japan (AEJ) issuance is up 61 per cent compared to this time last year. While markets in the West slowed during the summer, Asia’s markets continue to buzz. Project bonds are a significant opportunity in Asia, given the region’s massive infrastructure funding needs in the next decade, and with China’s Belt and Road initiative fuelling more opportunities. Please click here to read the full article.

By Mohamed Salama SUMMARY China’s global economic ambitions rest, at least in part, on the success of its Belt and Road (B&R) initiative, which aims to elevate the country’s role in global trade by, among other things, establishing new trade links and investing heavily in other countries’ infrastructure networks. Among those 60 nations, China needs partnerships with established financial, logistics and commerce-friendly hubs that can facilitate trade. Various metrics suggest the UAE could be become a major hub within the broader B&R and RMB framework. Please click here to read the full article.

By Donald Kanak, Chairman of Eastspring Investments The ten member-states of the Association of South-East Asian Nations (ASEAN) have enjoyed a remarkable decade of economic success. The region has doubled its gross domestic product (GDP) and raised its share of global merchandise exports by 50%. But, during the past few years, ASEAN’s share of global trade has levelled off, with total merchandise export value peaking in 2014 and the inflow of foreign direct investment peaking in 2013. To remain a growth powerhouse, ASEAN must continue to boost its competitiveness, particularly as China, India and other developing nations raise their games. ASEAN’s own research identifies infrastructure as key to raising competitiveness. Telecommunications, power, roads, rail and ports provide the backbone of modern competitive supply chains, and more efficient supply chains will increase ASEAN’s appeal to global manufacturers. ASEAN also needs to step up its

KEY TO GLOBAL GROWTH AND REDUCING LONG-TERM RISKS The Belt & Road Initiative, announced by President Xi Jinping in 2013, is a drive to build infrastructure connecting China and the other 64 Silk Road countries of ASEAN, South and Central Asia and the Middle East. The initiative is well recognised as a welcome stimulus to global growth, and helping countries face the challenges of poor physical and social infrastructure. What is less discussed but equally important is Belt and Road’s potential to address the massive and urgent need to create hundreds of millions of jobs across the region to absorb a dramatic surge in working population, especially the young adult population. Unaddressed, a growing jobs gap could lead to political fragility, the rise of new fanatical movements and new economic and conflict-driven refugee crises that would dwarf what the world, especially Europe, has faced recently. The low level of physical and social infrastructure in emerging economies is w