Asia’s evolving market dynamics | Barclays Investment Bank

Angela Liu 

Avinash, we just wrapped up the 19th annual Barclays Asia Forum. We have the record number of client participation. Changing World, New Thinking is the slogan of this forum. So what is on client’s mind today? 

Avinash Thakur 

Asia continues to be the engine of global growth, and our clients are increasingly focused on Asia’s largest economies of China, India, and Japan. And they’re approaching these economies with greater sophistication.

Angela 

People always say it’s China versus India. I think it’s no longer just China versus India, it’s India and China. People should have a slightly nuanced approach to the risks and opportunities associated with these countries.

Avinash 

I completely agree. I think China has clearly shown signs of renewed optimism in recent times, given the very attractive valuations that exist there and also the muted expectations. We’ve seen increased pickup in activity on the capital market side, and our global sponsor clients are very focused to see if there are signs of rebound.

China is the largest investment banking wallet in the region, and it’s really good to see revival in China.

Angela

India, I’m always very optimistic and bullish. It has, number one, the demographic support for the longer term. Number two, very stable political system. Number three, strong policy momentum. The tailwinds going to support India will carry it for the long term.

Avinash

However, given the increased valuations, we are seeing some signs of pushback from investors. India has a very vibrant and growing domestic market. However, the domestic market is not enough to provide the capital that is needed for sustained growth, and that’s why attracting external capital is extremely important.

Angela

So what do you think about Japan? We just had Kuroda-san at our Barclays Asia Forum, he shared great insights about Japan coming out of the deflationary environment. 

Avinash 

Given the recent leadership changes, I think the volatility will probably continue to remain there in Japan. However, it was really good to see that the interest in Japan from our global clients is real.

Angela 

All three economies, China, India and Japan, they represent different risks and opportunities for the near-, medium- and longer-term horizon. 

Avinash 

It’s that diversity across the region that makes Asia Pacific a strategic focus for our global clients. We remain committed to helping them identify the opportunities and helping them achieve their ambitions in the region and beyond.