In a recent report, HSBC has forecasted that money may start flowing back from Japan into China as early as 2024. This prediction comes as a surprise to many, as Japan has traditionally been a major source of foreign investment for China.
The report suggests that several factors could contribute to this potential shift in capital flows. One of the main reasons cited is the aging population in Japan. As the population ages, the country’s savings rate is expected to decline, leading to a decrease in investment abroad. At the same time, China’s growing economy and investment opportunities are becoming more attractive to foreign investors.
Additionally, HSBC points to China’s efforts to open up its financial markets and attract more foreign investment. The country has been making significant strides in this area, with measures such as the launch of the Shanghai-Hong Kong Stock Connect and the Bond Connect programs, which make it easier for foreign investors to access Chinese markets.
Furthermore, the report also suggests that the ongoing trade tensions between the US and China could push Japanese investors to diversify their investments away from the US and into China. As the world’s two largest economies continue to spar over trade, Japanese investors may see China as a more stable and lucrative investment destination.
It’s important to note that while HSBC’s forecast is optimistic, there are still potential hurdles that could impact the flow of money from Japan to China. For example, geopolitical tensions between the two countries, as well as economic uncertainties, could dampen investor confidence and slow down the movement of capital.
However, if HSBC’s prediction comes to fruition, it could have significant implications for both the Japanese and Chinese economies. For Japan, a decrease in outbound capital could impact domestic investment and economic growth. On the other hand, China stands to benefit from increased foreign investment, which could further fuel its economic development.
Overall, the potential shift in capital flows from Japan to China is a development worth watching closely. It could signal a new chapter in the economic relationship between the two Asian powerhouses and have far-reaching implications for global markets. Only time will tell if HSBC’s forecast proves to be accurate, but it’s clear that the dynamics of international capital flows are evolving, and investors would do well to pay attention to these changes.
Too many maybe
Cramer says CHINA shares are a headache … and so far he was absolutely right.. bullish calls from have been a total failure, who will buy into China now ? Local demand is weak. Reduction of transfer tax – a joke. And now the ban for "large shareholders" to sell. All of this is not creating much confidence in the China markets … Confidence is a shy animal and it will take a huge effort to bring it ever back.. and it will be hard with the current background performance of the China economy..
Why?china stock have no freedom since it was capped few years ago…
You mean HSBC wish money would flow back into China.
Just look to Russia to see whst happens to your assets when the dictator want to attack theneighbour (free country of Taiwan is next)
This guy is Lying with his eyes wild open….in fact he looks a like Fat Clown 🤡
Balloons air only
More comments from political fanatics than investors leaving comments here. Really nothing better to do 😂
Over 75% of foreign money in Chinese stocks has left China 🇨🇳 this year alone.
– Most of them went straight to the markets in South Korea, Japan, and India.
Why does Bloomberg once in a while pop up a Chinese regime's mouthpiece for an interview?
HSBC man, if your wife and children get kidnapped by CCP, blink your eyes