Standard Chartered Expects Growth in China-Asean Business
Standard Chartered (StanChart) expects its China-Asean business to grow at a rate of 25% each year from 2022 to 2025. The bank believes this growth will speed up as more Chinese companies move into Southeast Asia. Chow Wan Thonh, head of coverage for Singapore and Asean, said the growth over the next three years is likely to be better than in previous periods.
The bank's income from the China-Asean corridor has already shown strong growth in recent years. This trend is driven by more use of the renminbi for payments, financing, and managing cash as Chinese firms expand in the region. StanChart sees this as part of its 'China Plus N' strategy. This strategy aims to strengthen ties between China and its neighboring countries.
StanChart's focus on the China-Asean corridor matches broader economic trends. The bank's projections suggest that the region will be key for the growth of China's overseas investments. This approach shows how Chinese companies are looking to diversify their markets and supply chains.
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The expected growth in StanChart's China-Asean business could affect financial markets, especially in areas related to trade and investment in Southeast Asia. More activity in this corridor may lead to higher demand for the renminbi and influence currency exchange rates.
Investors will look for more details on StanChart's strategic plans and any upcoming reports on economic performance in the China-Asean corridor.
Based on reporting by: businesstimes.com.sg