The heads of some of Asia’s biggest corporations feel that economic recovery may be on the way and see improved investment potential in certain Asian countries.
According to a survey by the Asian Business Council – an organisation of CEOs from Asia-Pacific multinationals with a combined market share of US$887bn – 67% of members are confident that Asia’s economies will recover in 2010. This compares to last year, when only 6% felt that conditions would improve in 2009.
Members of the council represent most East Asian countries and include the heads of companies such as China’s Alibaba, Hong Kong’s Orient Overseas, Japan’s Nomura, Taiwan’s Fubon Financial, India’s Infosys, Singapore’s DBS Bank, Australia’s ANZ Bank, and South Korea’s Hana Financial.
Topping the list of major concerns was the recession in Asia, as well as oil and gas prices, which 37% of members said had a major impact on their business.
Recent deals announced or completed by some members illustrate the rise in confidence. China’s Alibaba is acquiring a US$79m stake in China Civilink, on which law firms Slaughter and May, Fangda and Jincheng, Tongda & Neal advised. ANZ has embarked on several deals in the last few months, including a A$4.7bn capital raising, a US$1.6bn acquisition of two ING divisions and a US$550m acquisition of Royal Bank of Scotland’s Asian assets. Korea’s Hana Financial is also currently considering a rights issue.
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Source: Asia Business Council
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