- Article

- Global Research
- General Research Insights
Accessing Asia
New policies and regulations: What you need to know
- Asian markets continue to open up to overseas investors
- We provide an update on the latest policies and regulations that can help increase market access and boost liquidity
- They cover equities, bonds, rates, FX, and ESG, as well as crypto trading and foreign direct investment
Opening up. What are the next opportunities to access markets in Asia? It’s a question we often get asked by clients – and that’s why we recently wrote a report highlighting key shifts in the changing regulatory landscape. It’s intended as an overview of the projects in multiple markets and asset classes that are in development for the next few years, rather than a comprehensive guide of all current regulations. Highlights include:
Mainland China. The “Connect” initiatives, which started with Stock Connect back in 2014, continue to expand. Swap Connect, which allows Hong Kong and international investors to participate in mainland China’s interbank interest rate swap market, has just been launched. The regulators are now working on Insurance Connect and a plan to expedite the opening up of mainland China’s Treasury bond futures market to overseas investors, including the potential listing of Treasury bond futures on HKEX.
Hong Kong. The settlement of RMB trading in Hong Kong is scheduled to start in late June this year. The HKD-RMB dual counter model will allow investors to trade some Hong Kong-listed shares in either HKD or RMB and help to deepen the liquidity of Hong Kong’s offshore RMB market. Meanwhile, retail trading of cryptocurrencies began at the start of June, boosting ambitions to make the city a hub for virtual assets.
ASEAN. Countries across Southeast Asia are taking steps to deepen their financial markets. In Vietnam, a new IT system expected to be in operation this year should improve trading, clearing and settlement processes. The authorities hope this will strengthen the case for the market to be upgraded from frontier to emerging market status by 2025. Singapore has become a hub for family offices set up by high net worth individuals, and Indonesia has launched two initiatives – a Blueprint for Money Market Development 2025 to accelerate FX and domestic financial market development, and a 2023-27 Indonesian Capital Market Roadmap.
India. India government bonds are on a positive watch list for inclusion in the widely tracked J.P. Morgan EM Bond Index. The next review will take place in September 2023. Inclusion would allow a large slice India’s USD1trn INR bond market to join the index at a weighting of up to 10%, leading to potential inflows of USD20-30bn.
ESG. The pace of change in ESG regulation and policies is accelerating, especially in the area of improving the level of disclosure. For example, in Hong Kong, all listed companies will be required to make climate-related financial disclosures by 2025.
Would you like to find out more? Click here* to read a free to view version of the report.
To learn more about HSBC Global Research and how to subscribe, please contact askresearch@hsbc.com
* Please note that by clicking on this link you are leaving the HSBC Global Banking and Markets website, therefore please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.
The following analyst(s), who is(are) primarily responsible for this document, certifies(y) that the opinion(s), views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Eliot Camplisson, Frederic Neumann, Paul Mackel, Keith Chan, Pin Ru Tan, Himanshu Malik, CFA, Wai-Shin Chan, CFA, Herald van der Linde, CFA, Steven Sun, CFA and Joy Wang
This document has been issued by the Research Department of HSBC.
HSBC and its affiliates will from time to time sell to and buy from customers the securities/instruments, both equity and debt (including derivatives) of companies covered in HSBC Research on a principal or agency basis or act as a market maker or liquidity provider in the securities/instruments mentioned in this report.
Analysts, economists, and strategists are paid in part by reference to the profitability of HSBC which includes investment banking, sales & trading, and principal trading revenues. Whether, or in what time frame, an update of this analysis will be published is not determined in advance.
For disclosures in respect of any company mentioned in this report, please see the most recently published report on that company available at www.hsbcnet.com/research.
Additional disclosures
- This report is dated as at 31 May 2023.
- All market data included in this report are dated as at close 29 May 2023, unless a different date and/or a specific time of day is indicated in the report.
- HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business. Information Barrier procedures are in place between the Investment Banking, Principal Trading, and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner.
- You are not permitted to use, for reference, any data in this document for the purpose of (i) determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments, (ii) determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument, and/or (iii) measuring the performance of a financial instrument or of an investment fund.
This document has been issued by The Hongkong and Shanghai Banking Corporation Limited, which has based this document on information obtained from sources it believes to be reliable but which it has not independently verified. Neither The Hongkong and Shanghai Banking Corporation Limited nor any member of its group companies (“HSBC”) make any guarantee, representation or warranty nor accept any responsibility or liability as to the accuracy or completeness of this document and is not responsible for errors of transmission of factual or analytical data, nor is HSBC liable for damages arising out of any person’s reliance on this information. The information and opinions contained within the report are based upon publicly available information at the time of publication, represent the present judgment of HSBC and are subject to change without notice.
This document is not and should not be construed as an offer to sell or solicitation of an offer to purchase or subscribe for any investment or other investment products mentioned in it and/or to participate in any trading strategy. It does not constitute a prospectus or other offering document. Information in this document is general and should not be construed as personal advice, given it has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Accordingly, investors should, before acting on it, consider the appropriateness of the information, having regard to their objectives, financial situation and needs. If necessary, seek professional investment and tax advice.
The decision and responsibility on whether or not to purchase, subscribe or sell (as applicable) must be taken by the investor. In no event will any member of the HSBC group be liable to the recipient for any direct or indirect or any other damages of any kind arising from or in connection with reliance on any information and materials herein.
Past performance is not necessarily a guide to future performance. The value of any investment or income may go down as well as up and you may not get back the full amount invested. Where an investment is denominated in a currency other than the local currency of the recipient of the research report, changes in the exchange rates may have an adverse effect on the value, price or income of that investment. In case of investments for which there is no recognised market it may be difficult for investors to sell their investments or to obtain reliable information about its value or the extent of the risk to which it is exposed. Some of the statements contained in this document may be considered forward looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors.
This document is for information purposes only and may not be redistributed or passed on, directly or indirectly, to any other person, in whole or in part, for any purpose. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. By accepting this report, you agree to be bound by the foregoing instructions. If this report is received by a customer of an affiliate of HSBC, its provision to the recipient is subject to the terms of business in place between the recipient and such affiliate. The document is intended to be distributed in its entirety. Unless governing law permits otherwise, you must contact a HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment mentioned in this document.
Certain investment products mentioned in this document may not be eligible for sale in some states or countries, and they may not be suitable for all types of investors. Investors should consult with their HSBC representative regarding the suitability of the investment products mentioned in this document.
HSBC and/or its officers, directors and employees may have positions in any securities in companies mentioned in this document. HSBC may act as market maker or may have assumed an underwriting commitment in the securities of companies discussed in this document (or in related investments), may sell or buy securities and may also perform or seek to perform investment banking or underwriting services for or relating to those companies and may also be represented on the supervisory board or any other committee of those companies.
From time to time research analysts conduct site visits of covered issuers. HSBC policies prohibit research analysts from accepting payment or reimbursement for travel expenses from the issuer for such visits. The Hongkong and Shanghai Banking Corporation Limited is regulated by the Hong Kong Monetary Authority.
© Copyright 2023, The Hongkong and Shanghai Banking Corporation Limited, ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of insert issuing entity name. MCI (P) 017/01/2023, MCI (P) 027/10/2022
Global Research
HSBC Global Research provides information, insights and thought-provoking ideas.
