Hong Kong continues to bear Beijing’s burden; it is losing financial business to Singapore amid growing financial challenges in China. Moreover, according to a report published by the Economist Intelligence Unit (EIU), ongoing economic turmoil in China will help Japan, India, and Singapore become new financial hubs in Asia.
The report further assessed prospects for Asian financial hubs amid mounting challenges in international markets. Trade disputes between the U.S. and China are dragging on while Chinese authorities tighten their grip on Hong Kong.
According to the EIU report, “While geopolitical factors will continue to pose challenges for China and Hong Kong, we believe that capital markets in Japan and India will continue to thrive over the next few years. Moreover, Singapore will mop up much of the financial business that is leaving Hong Kong.”
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Meanwhile, Japan and India might benefit from regional shifts away from China. The same report mentions that Japan’s appeal to investors lies in its robust regulatory framework, well-capitalised commercial banks, and low financial stability risks. In India, both the stock market indexes, Sensex and Nifty 50, rose by over 18% by the end of 2023. Furthermore, India’s economic growth, driven by strong manufacturing activity and consumer spending, bolstered market performance.
