News

Masses stage historic Hong Kong protest

Hong Kong protestersHongkongers came out in their masses for a second consecutive Sunday in defiance of a controversial extradition bill that has sparked protests, writes FG Asia’s Romil Patel from Hong Kong. In historic scenes, the Civil Human Rights Front, which organised the march, claimed almost two million people took part on June 16, 2019. Police put the figure at 338,000. A day earlier, Hong Kong’s embattled chief executive, Carrie Lam, said she would suspend the bill that would have allowed people to be sent to mainland China to stand trial. Hongkongers, however, wanted to see the bill scrapped entirely over mounting concerns about Beijing’s tightening grip on the former British colony. The “one country, two systems” arrangement – which guarantees Hong Kong a “high degree of autonomy” following the British handover in 1997 - is perceived by many to be under threat.  On Sunday, the protesters dressed in black and weaved their way through Hong Kong’s streets, keeping the pressure on Lam to step down as leader. She later apologised for the government's work that has “led to substantial controversies and disputes in society, causing disappointment and grief among the people”. Protesters stayed out well into the night chanting and occasionally breaking into song. In more sobering scenes, they also clutched bouquets of flowers and handmade origami flowers and cranes to pay tribute to a demonstrator who fell to his death on Saturday night after unfurling a banner. Origami_flowersSilence pervaded the atmosphere on a grey and dreary Monday as people continued to pay their respects to the fallen protestor outside Pacific Place in Admiralty with handwritten notes and origami. People also congregated outside Hong Kong’s legislature to continue to demand Lam’s resignation. Beijing has said that it continues to support Lam in comments made by Lu Kang, a spokesman for China’s foreign ministry, at a press briefing. Hong Kong’s stocks rose in the aftermath of the protests, with the Hang Seng index rising by as much as 1.4% on Monday. By the midday break it was up 0.7%. Speaking ahead of Sunday’s protests on the outlook for Asia and how investors should maintain a cautious view through this period of uncertainty, Binay Chandgothia, a portfolio manager at Principal Portfolio Strategies, said: “Even before these developments, the outlook for Asia was challenging, given the ongoing slowdown in growth and ongoing worries about the impact of an escalation of trade tensions between US and China.   “We have dialed down our portfolio risks, reducing our equity allocations to Hong Kong/China and Asia generally and adding defensive bonds in the portfolio to tide over this period of uncertainty,” said Chandgothia. ©2019 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.

Opinion

Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Why rising demand for healthcare is creating investment opportunities in China

rising demand, healthcare, investment, opportunities, China, Robert St Clair, Investment Strategy, Fullerton Fund ManagementRobert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Roundtables

India: An “obvious choice for global investors”

Jun 22, 2023

Funds Europe, the sister publication of Funds Global Asia, hosted an India investment discussion with two seasoned experts and asked if India is the ‘last one standing’ from the Brics phenomenon. We also hear that for India, the inclusion of Indian bonds in a major index may not be the desired...

Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.