Lessons learned bode well for Asian business
Noel Quinn says companies not only increased cost efficiency but also found new markets
This has been a tough year for business, but beyond the headlines is a compelling Asian story of robustness, adaptability and entrepreneurial flair that bodes well for next year.
Asian businesses, steeped in the harsh lessons of the regional financial crisis 15 years ago, have found ways to maximise their cost efficiency - particularly in supply-chain management - and they have found new markets for their products.
From a banker's perspective, it is clear most companies have sufficient resources to get through the current dip. Unlike 1997, they are not overburdened with debt, and most have avoided significant lay-offs.
But perhaps the most striking trend has been how businesses have streamlined their financial management to cut costs. Producers are taking an in-depth look at their supply chains in a drive to control costs and spot potential vulnerabilities.
Part of that process has been the search for a banking arrangement that minimises costly financial friction among the various links in the chain. HSBC has noticed much keener demand for banking solutions that promote connectivity between companies, between countries and between regions.
The preference for connectivity has been amplified by cash-rich Asian businesses looking for competitively priced acquisitions in Europe and the United States.