Traders in Asia have never had more choices
With investors in some corners of Asia seeing subpar performances in the first half of 2023, some are turning to invest in technology stocks, with a particular focus on A.I.-themed investments, to generate returns and diversify risks. Asian exchanges across the region have enabled investors to easily pivot this way after introducing new investment and hedging tools to make trading more diversified, accessible and inclusive.
Asia is home to companies at the forefront of established and novel technologies that are laying the foundation for the upcoming A.I. revolution, from semiconductor enterprises to the world’s largest carmakers. Furthermore, as thematic investment becomes increasingly popular around the world, Asia is also at the helm, with investors rushing to capture trends such as sustainable investing, industrial innovation and other disruptive technologies. The supply chains of these industries lie almost entirely within this region, and so do the best hedging tools for managing risk and exposure for investors. Aligning with these trends, exchanges are collaborating to bring new semiconductor index futures to the market to empower investors to gain exposure to the semiconductor subsector.
The prevalence of export-orientated economies in Asia means an appetite for higher returns naturally extends to U.S.-focused financial products transacted in U.S. dollars. As debates about the longevity of high inflation and how key central banks will balance this against signs of economic weaknesses continue, the region’s exchanges are pushing out new products, such as new U.S. Treasury bond ETF futures in Taiwan, to help Asian investors hedge against interest rate movements without having to leave their home markets.
Asian exchanges have long had a well-earned reputation for catering to local retail investors. Some exchanges have been making risk management tools accessible to retail investors with smaller-sized derivatives, such as “mini” equity index and single stock futures, or contracts with shorter expiries.
During the pandemic, such contracts proved popular with investors who found time while staying at home to experiment with new investment ideas and easy-to-use hedging tools, further building on an already nascent trend being unleashed by faster internet connections, improved access to market data and changes in tax laws. According to a report released by the World Federation of Exchanges, the Asia-Pacific region led the rest of the world in retail trading activity, which makes up 61% of trading on average, compared to 13% in the Americas, where markets are more geared towards institutional investors.
In summary, investors of all sizes have never had more choices in Asia. The fast development of new products means investor demand will be better matched with the right assets, stimulating improved performances in the coming months and years.
-- Contact us at [email protected]
-
Integration of GIS and BIM can drive development of smart city Dr. Winnie Tang
The China Association for Geospatial Industry and Sciences (“the CAGIS”) released the Top Ten Highlights of China's Geographic Information Industry in 2023, which provides much inspiration. The
-
Equip young people for the future Dr. Winnie Tang
In late February, the inaugural flight of an air taxi from Shenzhen Shekou Cruise Homeport to Zhuhai Jiuzhou Port took only 20 minutes with an estimated one-way ticket price of 200 to 300 yuan per
-
Are we raising a generation of leaders, or of followers? Brian YS Wong
The essence of education is defined not by the facts it imparts, but the potential knowledge it inspires students to individually pursue on their own. Put it this way – the ideal form of education
-
The urgent need for reforms to sex education in Hong Kong Sharon Chau
Nearly one in every four university students (23%) in Hong Kong has been sexually harassed, according to a 2019 report published by the Equal Opportunities Commission (EOC). A 2019 study found that
-
STEAM should be linked to real life Dr. Winnie Tang
In the 2017 Policy Address, STEM (science, technology, engineering and mathematics) education was proposed as one of the eight major directions to promote I&T development. Since then, funding has