Photo: Tyrone Siu / Reuters
British Bank HSBC in his study, excerpts of which leads to CNBC, described the advantages of Asia to Europe in a pandemic coronavirus. Being more attractive to global investors, they can more easily Finance their needs and further development.
According to the authors, in the best position to be industrialized Asian countries, and Singapore. Their economies have recorded growth, and most businesses returned to work at pre-crisis level. The main risks associated with the second wave of coronavirus, as well as the lack of flexibility of the authorities in formulating anti-crisis policy.
In contrast, the successful countries, the authors cite emerging markets, minor exporters of oil and the state of the Eurozone. They are recovering slowly and domestic demand is suffering because of the drastic drop in the solvency of the population. “Measures to provide liquidity suggests that such problems still remain,” — said in the study.
It is also noted that investors around the world are faced with the unexpected and are now forced to make unconventional decisions. So, due to global monetary easing, government bond yields in many countries have declined, and buyers now have to choose alternative ways of investment. However, even risky assets, which usually brings higher income, now have lower coupon rates.
In this regard, HSBC predicts growth of investor interest in the shares of various companies in different countries. He will be backed by government policy that reduces the risk of a collapse in the markets. Special attention is offered to pay the Asian bonds — both government and corporate. Issuers still offer a higher yield compared to emerging markets and at the same time sufficiently recovered from the effects of the crisis.
Video, photo All from Russia.