Asia’s growing middle classes bring about more pulling together, than pushing against
HSBC says various sectors are enjoying region’s strengthening interconnectedness — but worryingly, defence is included on the list
Companies that can benefit from the growing interconnectedness between consumers across Asia’s burgeoning so-called middle classes look like good picks for investors, says HSBC.
A report from HSBC setting out ten equity themes for the coming decade, highlights the impact of the links between East Asian nations and their consumers as being a major underlying driver for growth in a number of sectors in the coming years.
The rapid growth in per capita incomes and urbanisation across east Asia in recent decades had led to significant growth in the spending power of the region’s new middle classes.
And in turn, this has resulted in increased demand for consumer products and other conveniences.
This growth was, in part, a result of greater integration between the economies of different countries in the region, but has also contributed to further shared interests, which, the HSBC report says, are providing new opportunities for companies and those invested in them.
One example cited in the report is the Korean cultural wave known as Hallyu.