Treasury Management Internation Logo

What a globalising China means for ASEAN: Two-way benefits on the rise


A new report from HSBC Global Research outlines the following:

  • Trade between China and ASEAN reached USD358bn in 2013, up from only USD37bn in 2000
  • Rising levels of investment in both directions represent the next phase in the relationship
  • This benefits a number of sectors – especially banking, manufacturing and real estate – and is also having an impact on how equities behave across the region

Key numbers

– ASEAN combined would be the seventh largest economy and the third most populous country globally, with a combined GDP of USD2.4trn in 2013 and a population of 600m.
– Since 2002, the tariffs for more than 90% of the goods in the ASEAN-China Free Trade Area have been reduced to close to zero.
– About 12% of ASEAN’s exports went to China in 2013, up from 6.5% in 2003; more than 16% of ASEAN’s imported goods came from China in 2013, up from less than 8.5% in 2003.
– China has been ASEAN’s largest trading partner since 2009, while ASEAN has been China’s third largest trading partner since 2010.
– Bilateral trade between China and ASEAN surpassed USD358bn in 2013, up from only USD37bn in 2000.
– Around 25% of China’s coal imports originate from Indonesia, more than from any other country.
– Annual growth of cumulative FDI from China to ASEAN averaged 54% over 2003-12. The numbers for Singapore, Laos and Myanmar were 62%, 81% and 89%, respectively.
– ADB’s Regional Investment Framework in the Greater Mekong Subregion has about USD51.5bn of projects in its pipeline.
– China’s Exim Bank has lent more money than the World Bank to developing countries. It has provided credit support to build or renovate 24 highways, 3 railways, 1 port, 3 airports and 9 bridges in the Mekong region and ASEAN.
– China has proposed setting up an Asia Infrastructure Fund, resembling the ADB in form and function, with up to USD100bn in start-up capital.
– Investments are led by Chinese state-owned enterprises (SOEs), at more than 80% of flows so far.
– China Railway Group (CRG) is planning a USD9.6bn project which could be the largest ever FDI in Cambodia. CRG’s USD4.8bn Indonesia coal railway project is the largest single Chinese FDI initiative in ASEAN.
– Chinese investment group Bright Ruby set a record for a private-sector property transaction in Singapore by purchasing Park Hotel Group for USD1.2bn in 2013.
– Thailand’s Charoen Pokphand (CP), one of China’s first foreign investors, now has more than 200 subsidiaries in food processing, retailing, and other businesses.
– ICBC Singapore branch has opened accounts for several central banks in the region to facilitate depositing RMB converted from US dollar reserves.
– RMB60bn in foreign exchange trading and RMB150bn in cross-border RMB settlements were conducted with ICBC Singapore Branch in 2013.

The report was written by Herald van der Linde, Head of Equity Strategy, Asia-Pacific, Trinh Nguyen, Asian Economist and Qu Hongbin, Co-Head of Asian Economic Research 經濟研究亞太區聯席主管 屈宏斌.

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...


HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...


The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...


HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....


Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...


HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...


Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...


Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...


Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...


Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...