Chart of the day: How trade and investment add up
Trade links between China and its neighbours in the Association of Southeast Asian Nations have strengthened in the past two decades, with the US dollar rising at roughly 20 per cent a year on average since 1995. Investment, meanwhile, is relatively weak and seemingly inversely related. Analysis by HSBC Holdings shows net flows of long-term investment funds are headed from Asean to China, while Beijing concentrates its spending in the group's smaller economies. HSBC sees three factors driving a deeper investment relationship: regional trade pacts, deregulation in China and rising incomes across Asia.