New networks of capital

In HSBC’s latest report – New Networks of capital – we look at how the rapid wealth creation in Asia and the Middle East is reshaping global investment flows. As local and regional markets become more liquid and more accessible, more capital is being put to work in and between these two regions.

Capital flows along the Asia-MENAT corridor are rising fast, but this trend is still in its infancy. We see long-term opportunities for clients centred around four themes:

1. Financial Infrastructure: Strong diplomatic relations and supportive policy initiatives are deepening connections between regulators and exchange operators. This creates new opportunities for cross-border investments and capital raising.
2. Capital Markets: The liberalisation of debt and equity capital markets and investor interest in diversification is a tailwind for DCM and ECM.
3. Infrastructure & clean tech: Renewable energy and social infrastructure projects in the Gulf depend heavily on Asian technology and EPC contractors, requiring cross-border financial services.
4. Energy: Asia’s demand for oil and gas is fuelling strategic investments in the hydrocarbon industry and creating new foreign exchange revenues.

To find out more about these key themes and to download the full report, click here.