Global financial firms are pivoting their expansion plans towards South Korea, while taking a more measured approach to China and India, according to an industry survey conducted by Asia Securities Industry & Financial Markets Association (ASIFMA) and consultancy firm KPMG.
Expansion Plans
About two-thirds of the 34 firms surveyed plan to expand their Asia-Pacific business over the next three years, with Singapore, Hong Kong, South Korea, China, Japan, India, and Taiwan attracting roughly half of the firms’ expansion interest.
ASIFMA Chief Executive Peter Stein noted that competition within Asia has intensified, with more Asian countries competing for a share of global flows. Stein also mentioned that South Korea has historically been undervalued, but sentiment is now extremely positive, not only in equities but also in the bond market.
However, expansion interest in China has steadied at around 40%, down from earlier peaks, as firms weigh capital controls, data rules, and geopolitical risk. In India, regulatory conditions have become harder, despite the country climbing to fifth place in ease-of-doing-business rankings.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
