HONG KONG: Bankers and investors fear China's push to impose national security laws on Hong Kong threaten the city's future as an international financial centre. If it gets to that stage, Beijing's move will come at a cost for China's economy. WHY DOES CHINA NEED HONG KONG AS IT IS? China still has extensive capital controls and often intervenes in its financial markets and banking system. Hong Kong is one of the world's most open economies and one of the biggest channels for equity and debt financing. The size of Hong Kong's economy may only be the equivalent of 2.7% of mainland China's, down from 18.4% in 1997 when it reverted to Chinese rule, but the territory punches above its weight due to world-class financial and legal systems. As a gateway between China and the West, Hong Kong attracts global capital for China more efficiently than its other cities. HOW IS THAT CHANGING? Under the 'one country, two systems' formula agreed as part of Britain's handover of the territory … [Read more...] about How important is Hong Kong to China as a free finance hub?
Why foreign direct investment is important
By Sanjeev Sanyal The prime minister has set out a clear vision for a $5 trillion economy by 2024-25, a nominal GDP of Rs 375 lakh crore. In turn, this requires sustaining a real GDP growth rate of 8% a year. What are the ingredients of a model that can generate such growth? The overwhelming evidence, especially from East Asia, is that such high growth rates have only been sustained by an economic model driven by a virtuous cycle of savings, investment and exports supported by a favourable demographic phase. As discussed in the latest Economic Survey, India has already entered a period with a high share of workingage population, & will remain in this ‘demographic dividend’ phase for over two decades. However, favourable demographics is not sufficient. Broth for Growth Cross-country data shows that sustained high growth has always been driven by investment. Indeed, a GDP growth rate of 8% will typically require an investment effort in excess of 35% of GDP. … [Read more...] about View: Improving legal system is the best investment India can make
Besides big cities such as Hà Nội and HCM City, satellite cities and provinces have also attracted attention of investors, including Long An and Bình Dương provinces. Those cities and provinces have good locations, abundant human resources and good infrastructure for warehousing, logistics and transportation to major cities, Khương said. … [Read more...] about Hà Nội hopes to attract $38.3 mln of investment in H1
The country had received an FDI of $44.36 billion during April-March 2018-19. The sectors which attracted maximum foreign inflows during 2019-20 include services ($7.85 billion), computer software and hardware ($7.67 billion), telecommunications ($4.44 billion), trading ($4.57 billion), automobile ($2.82 billion), construction ($2 billion), and chemicals ($1 billion), the Department for Promotion of Industry and Internal Trade (DPIIT) data showed. … [Read more...] about FDI rises 13% to $50 bn, highest flow into services
Vietnam is expected to see a new foreign direct investment (FDI) wave as more foreign companies plan to move investment into the country. The US-China trade has triggered the trend of shifting production lines from China to Southeast Asia and other markets, including Vietnam which was seen as a promising destination. Meanwhile, many countries are fighting against the Covid-19 pandemic while Vietnam has basically controlled the disease, while maintaining its economic growth momentum. Pegatron, Amazon and Home Depot have started recruiting and seeking to open new supply chains with Vietnam being among potential markets.Other US giants like Google and Microsoft have announced their plans to relocate their production facilities of new phones, personal computers and some other devices from China to Southeast Asia with factories in Vietnam and Thailand expected to be the beneficiaries, the Nikkei Asian Review reported.Microsoft is scheduled to start producing its Surface line, including … [Read more...] about More giant foreign firms plan to shift investment into Vietnam