The Asian giant has awoken – now it’s up to the City to seize the opportunities
As an international banker by trade, I spent much of my career in the early 1990s living in Asia.
Back then, with the exception of Singapore and Hong Kong, the region was seen by many as somewhat of a sleeping giant.
Yes, there was huge potential, but also countless challenges to overcome if you wanted to do business.
Skip forward 30 years, and it’s clear that the giant has awoken.
Asia now represents nearly half the world’s GDP and most of global growth.
Economic liberalisation and international investment have led to rapid expansion of infrastructure, with high-speed trains and metro lines taking people past shiny new skyscrapers and fancy new shopping malls, all being built to court a growing affluent middle-class.
Last week, I again saw this unprecedented growth with my own eyes, as I embarked on my third visit to Asia as lord mayor.
Travelling to Kuala Lumpur, Jakarta and Shanghai, I met industry and government representatives to promote ties between the UK and these fast-developing economies, seeking to boost cooperation in areas of traditional finance such as infrastructure and capital markets, and in innovative newer financing methods like fintech, green finance and sharia-compliant products.
One other thing that struck me during this visit was the change in how these economies viewed the west and the role that the UK can play in Asia. Competition is moving aside in favour of cooperation, and phrases like “expertise sharing” and “global regulatory standards” were frequently on the lips of those I met.
This changing attitude is something that we in the City of London Corporation support. It is a view that we have actively worked to
promote to ensure that the UK remains a world-leading international financial centre.
Take for example the Green Finance Institute, a new body that we launched two weeks ago alongside the government to act as a one-stop shop for all work relating to the sector.
Throughout my visit to Asia, I received much interest from those I met about how they can work with the Institute – a solid endorsement of the body, and a sign that it will only become more influential in years to come.
Elsewhere, we have been vocal in our support for the Shanghai-London Stock Connect, and I reiterated this during meetings in Shanghai alongside the London Stock Exchange.
Yes, questions remain over aspects of the initiative, but the fact remains that it is a hugely exciting development, and one that will allow more international investment into China. which is set to overtake the US as the world’s biggest economy by 2030.
And China is not the only big fish in the Asian pond. India is the fifth largest world economy and the fastest growing G20 economy. Last year, UK exports to India grew by 19.3 per cent, and we have been top five investors in each other’s economies since 2010.
It’s stats like this that make me so excited about tomorrow’s “India Day” event at the Mansion House. Organised by the Department for International Trade, the forum will celebrate ties between our countries, while discussing opportunities for collaboration in areas like fintech and insurance.
These opportunities in India and across Asia are huge – the time for the City to seize them is now.