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Emerging Markets: Central to our Strategy
HSBC understands that emerging markets - which are growing faster than developed economies - are more closely linked than ever with the development of the global economy. With our origins in Hong Kong and Shanghai and our uniquely global footprint, no other bank is better positioned to advise on emerging markets. Often the first foreign bank to work in partnership with local businesses and governments in emerging markets, our local knowledge and international reach is unparalleled.
HSBC Emerging Markets Index
The quarterly HSBC Emerging Markets Index (HSBC EMI) is a market first: we've created a leading economic indicator for the world's emerging market economies, at a time when the rapid progress of the emerging market regions has never been more closely connected, or important, to the development of the global economy.
Latest News
HSBC Emerging Markets Index Q1 2012
Stephen King, HSBC's Chief Economist, said: "The latest HSBC EMI underlines the relative immunity of emerging nations to the economic permafrost of the developed world. Emerging nations still have many years of economic "catch-up" ahead of them, suggesting that their growth rates - driven by continuous urbanisation alongside productivity gains linked to improved access to global capital - should remain significantly higher than in the west. They also have considerably more policy ammunition to deploy, including rate and reserve ratio cuts and, if necessary, fiscal stimulus.
"Despite two successive quarters of strength, EMI remains at a relatively low level, thanks largely to further deterioration in Chinese export orders but also domestic demand as a result of attempts to tame inflationary pressures through quantitative tightening. Emerging market inflation has generally eased outside India, despite the return of higher oil prices, and policymakers are returning their focus to promoting growth over limiting inflation.
"Emerging nations still have to balance the risks of too little growth against the threat - if not yet the reality - of commodities-driven inflation. But the outlook remains encouraging with China, India, Brazil and Mexico all set to be top ten global economies by 2050."
Emerging Markets Index
Q1 2012 EMI - key points:
** HSBC Emerging Markets Index rises to 53.4 in Q1 2012 on both manufacturing and services growth
** Further expansion in service activity to threequarter peak; optimism rebounds across the board
** Manufacturers see marginal growth for the first time in three quarters; China lags other BRICs
** Another quarter of input price inflation extends run of rising costs to three years
** Policymaker attention turns to promoting growth after period of quantitative tightening
Purchasing Managers Index
PMIs move markets and inform the decisions of policy makers and businesses across the globe. They are always more timely than full official data and frequently more reliable.
As the leading emerging markets bank, HSBC recognises the value and importance of accurate data from developing economies so as to ensure a clear picture of economic progress.
HSBC has partnered with Markit, the global financial information services company, to combine best in class, Markit-sourced PMI data with the additional insights created by HSBC's unrivalled network of economists on the ground in emerging markets.
HSBC PMIs now cover 12 of the world's principal emerging markets, including recently launched PMIs for Russia, the United Arab Emirates and Saudi Arabia.
About HSBC in Emerging Markets
HSBC is one of the world's largest banking and financial services organization and the leading emerging markets bank. With an international network comprising some 8,000 offices in 87 countries and territories, HSBC has a strong presence in both developed and emerging markets.
About HSBC Research:
Global Research, a division of HSBC Global Banking and Markets, has over 500 staff in 20 countries, both developed and emerging. We specialise in four core product areas – currencies, economics, equities and fixed income – with a particular emphasis on emerging markets.
Becoming a client: If you would like to access the HSBC Global Research website, please contact us.
Visit: hsbcnet.com/research
