High potential trade and investment corridors

In my post on 3 May 2023, I shared some of my thoughts on the changing trade and investment landscape within Asia Pacific that I think companies around the world should be taking a close look at.??

In this short note, I would like to share some more significant changes that are afoot that I have observed in my time at Invest Hong Kong . Again, I believe that senior executives and boards would be well-advised to take a fresh look at assumptions that might have been long-held as they consider where growth opportunities may emerge.

These comprise three trade and investment corridors where the potential for higher-than-average growth is likely.?These are those to and from:

• GCC;
• Africa; and
• Central Asia.

The drivers for these changes are varied, including diversification strategies, seeking higher growth markets, technology creating new opportunities and the potential to leap-frog ahead unhindered by costly legacy infrastructure,?and opportunities spurred on by Chinese investment into those regions. Over time, I believe we will see more and more Chinese-invested businesses looking to bring the invested business into China and Asia in what could be termed flow-back investment. Another driver is, of course, capital raising where Hong Kong's debt and equity capital and private markets are both deep and liquid..?This will especially be the case where the fund-raising business has a large client base in China/Asia. This is all, of course, in the context of a dynamic geopolitical landscape where stronger political ties - bilateral and regional - underpin stronger trade and investment links.

So what does it mean for businesses, executives and boards???I would suggest that is a good time to step back and read the tea leaves on what is happening in your sector and determine whether you are as well-positioned as you need to be to thrive and grow in this dynamic environment where new opportunities will continue to emerge.