| Hello from Tokyo. The Big Story this week focuses on the Greater Bay Area, an 11-city megalopolis comprising China’s manufacturing heartland including nearby Shenzhen, Macao and Zhuhai. According to the story, this region’s collective gross domestic product was 12.6 trillion yuan ($1.97 trillion) in 2021, surpassing South Korea’s. I understand the growing concerns over the future of Hong Kong. Its autonomy has been dramatically eroded under the national security law of 2020. In addition, Hong Kong may become just one of 11 cities of the bay area, interdependent with each other. Will Hong Kong be able to preserve its charm as the Pearl of the Orient and continue to enjoy a cosmopolitan lifestyle and vibrant, free economy? One thing to be clear is, its future is heavily dependent on Beijing’s will. Looking back on the last quarter century, one cannot deny that the close proximity and relations with mainland China have given a unique economic advantage to Hong Kong as a place to do business. In my view, the massive investment in infrastructure will potentially benefit Hong Kong. If Beijing guarantees freer and more open business conditions, Hong Kong will stay competitive as a regional financial hub, along with Singapore or Shanghai. Market Spotlight might be a comforting story for those who believe in a brighter future for Hong Kong with strong economic ties with the mainland. After the abrupt ending of its zero-COVID policy, investors’ sentiment regarding Chinese stocks has become more bullish and some predict that China could deliver the best return of any major stock market in 2023. Business Spotlight is an alarming story for Japan Inc. Thailand and Southeast Asia have been a “home away from home” for many Japanese companies and their managers, including Toyota President Akio Toyoda, but that special relationship is threatened by China. According to the story, China was likely the biggest investor in Thailand for 2022, dethroning Japan for the first time since 1994. As for the automobile industry in particular, Japan is behind China in producing electric vehicles. Japan’s reluctant stance to shift from gasoline or hybrid cars into EVs may be a fatal mistake. Asia Insight is one of the most read articles in the last seven days. It’s a story on India’s wealthiest business district and its neighbor across the river, the Dharavi, Asia’s biggest slum. People living in the slum seem skeptical about the redevelopment plan, because relocation of its residents to high-rise apartments could deny the social networks and open spaces needed for their livelihoods. The Dharavi became famous thanks to a 2008 Danny Boyle film, “Slumdog Millionaire.” I can recommend this Oscar-winning masterpiece. As I have never visited the site, I read the story, imagining the scenes described in the film. For lighter weekend reading, I recommend a culture and arts piece from Indonesia. The film “Sri Asih” and Jakarta-born actress Pevita Pearce, who played the female hero, seem very attractive, and I will definitely see it in the near future, to understand that country better. |
SBL GRUP 