The $28trn global reach of Asian finance

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 69 sec. here
  • 3 min. at publisher
  • 📊 Qulity Score:
  • News: 31%
  • Publisher: 92%

The scale of Asia’s foreign holdings has only grown since 2005, as the region has become richer and older

United Kingdom Headlines News

United Kingdom Latest News, United Kingdom Headlines

THE COUNTRIES of East and South-East Asia are renowned, even envied, for reshaping global supply chains. Less well appreciated is the extent to which they have redrawn the map of global capital flows. After a buying spree over the past decade or so, the region’s ten biggest economies now hold nearly $28trn in foreign financial assets, more than three times the amount in 2005 and equivalent to a fifth of global assets held by foreigners.

The shift is drawing the attention of financial watchdogs. In December the Bank for International Settlements , a club of central banks, concluded that Asian institutional investors had contributed to dollar funding stress in March 2020, as covid-19 first began to spread and markets panicked. Yet much about these financial interlinkages, and the risks associated with them, is still poorly understood.

The growth in foreign financial holdings has gone hand-in-hand with the transformation of conservative institutional investors into big players in distant corners of financial markets. A prime example is Norinchukin Bank, an agricultural co-operative based in Japan. It holds some ¥4.8trn in CLOs, securities made up of a portfolio of loans, most of which are denominated in dollars. Before it slowed purchases in 2019, it was widely considered the largest buyer of CLOs in America.

South Korea’s National Pension Service has also sought more overseas exposure, announcing a flurry of global ventures. Foreign assets made up 37% of the pension fund last year, nearly double the share in 2013, and the firm aims to increase that to 50% by 2024. The strategy is to chase returns not only abroad but also in less-liquid asset classes, before the fund’s benefit payouts start to increase in the early 2040s and its revenue surplus turns to a deficit.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Israel says it will not be bound by any nuclear deal with IranNaftali Bennett said Israel will have ‘full freedom’ of action regardless of any agreements reached Brandon is a disgrace to humanity 🤡 Then the Yanks should stop giving them billions of dollars an access to their military hardware...
Source: The Independent - 🏆 80. / 59 Read more »

Spider-Man: No Way Home overtakes The Avengers at the global box officeSpider-Man: No Way Home overtakes The Avengers at the global box office: SpiderManNoWayHome | SpiderMan
Source: digitalspy - 🏆 56. / 63 Read more »

Asian stocks mixed after Wall St falls on rate hike worriesAsian stock markets are mixed after Wall Street fell on worries the Federal Reserve will raise interest rates as soon as March Taking care of my debts and giving my family the best financially is what I have long waited for, TarellaCampbel thank you for helping me gain financial success. elonmusk jack mayemusk XHNews MFA_China trtworld RTErdogan THE BIGGEST WEAPON-OF-MASS-DESTRUCTION IN THE WORLD IS “INTEREST RATE”! Gotta kill it, Islam prohibited it 1400 years ago for all the right reasons.
Source: The Independent - 🏆 80. / 59 Read more »

What To Do If You Think You're Being Paid Less Than Your White ColleaguesBlack and Asian workers earn 16% less than white colleagues. It's infuriating, but not shocking.
Source: HuffPostUK - 🏆 108. / 51 Read more »

We Must Overcome Our Divisions and Come Together to Face Longterm Global RisksA new report on the world's greatest risks makes clear that we can only fight global climate change if we work on social cohesion at home Welp. We're screwed. Tell that to certain politicians that simply say 'there there, well get through this together..' while they let corporations dictate policy. zahidi For all who doubted the Admin 🤦 look successful transaction for today DM now for who's interested in making some extra cash today don't be afraid 100% legit people come on now now. william1_eddiy
Source: TIME - 🏆 93. / 53 Read more »

Global heating could lead to an increase in kidney stone disease, study findsAccording to Children’s Hospital of Philadelphia, cases will increase between 2.2% and 3.9% depending on emission levels Is that more important than a complete breakdown of society, where food shortages alone transform our once 'civilised' world overnight into a brutal free-for-all Darwinian struggle of Malthusian proportions within days? Kidney stones, aye? We have too much to learn, it seems.
Source: Guardian news - 🏆 28. / 68 Read more »