Abstract: In 2022, due to multiple factors beyond expectations, the pace of global economic recovery slowed down, and the major capital market indices were shaken and differentiated. Thanks to the resilience of China's economy, the deepening and expansion of capital market interconnection mechanism and many other driving factors, corporate finance in the main capital markets in Asia is active. For example, the amount of initial public offering (IPO) in Chinese mainland and Hong Kong, China and other representative capital markets ranks among the world's leading. As an important link between the capital market and the real economy, the Asian securities industry actively grasps the Asian economic stability and development trend, adapts to the trend of regional economic integration, fully explores the opportunities for regional development and cooperation, and effectively gives play to the function of capital market resource allocation. Asian securities industry is consolidating the foundation of their own development and making its due contribution in order to prevent and mitigate major risks and promote a stable recovery of the economy at the same time. In 2023, the global economic development environment is still facing uncertainty. Regional economic integration in Asia continues to advance. And major Asian economies represented by China and Japan relax the epidemic restrictive measures, which provide growth momentum for the recovery of the Asian economy, and also provide a favorable external environment and development opportunities for the high-quality development of the Asian securities industry. Asian securities industry is expected to maintain the security and stability of the global industrial chain supply chain and high-quality construction of the Belt and Road, actively respond to the aging and climate change and other aspects of seeking more opportunities for cooperation. At the same time, Asian securities industry is also expected to make out voices of Asia heard in the international financial arena, contribute to the financial power of Asia, in order that more certainty will be injected into the sustainable development of the Asian regional economy and even the global economy.
In terms of stock indices, as at the end of 2022, the SSE Index of Chinese Mainland closed at 3089.26 points, down 15.13% from the end of the previous year, and the SZSE Index closed at 11015.99 points, down 25.85% from the end of the previous year; the Hang Seng Index of Hong Kong, China, closed at 19781.41 points, down 15.46% from the end of the previous year; the Nikkei 225 Index closed at 26,094.50 points, down 9.37% from the end of the previous year; FTSE Singapore Strait Index closed at 3251.32 points, up 4.09% from the end of last year. In terms of total stock market capitalization, the market capitalization of stock markets in major Asian economies declined by the end of 2022. The first largest stock market in Asia is the Shanghai Stock Exchange, with a total market capitalization of listed companies of US$6.72 trillion, down 17.5% year on year; the second largest stock market is the Tokyo Stock Exchange in Japan, with a total market capitalization of US$5.38 trillion, down 17.8% year on year; the Shenzhen Stock Exchange is ranked third, with a total market capitalization of US$4.70 trillion, down 24.4% year on year; and the Hong Kong Stock Exchange of China ranked fourth, with a total market capitalization of US$4.57 trillion, down 16.0% year on year; and the Singapore Exchange had a total market capitalization of US$619.4 billion, down 6.6%.
I．Asset Size of the Securities Industry
(i) Analysis of the Assets of Securities Industry in Chinese mainland
As of the end of 2022, Chinese mainland's securities industry totaled 140 securities companies. The total assets of the whole industry amounted to USD 1.59 trillion, an increase of 4.41% from the end of the previous year; the total liabilities amounted to USD 1.19 trillion, an increase of 3.09% from the end of the previous year; and the net assets amounted to USD 400.256 billion, an increase of 8.52% from the end of the previous year.
(ii) Analysis of Assets of Securities Industry in Japan
As of the end of the Reporting Period, the securities industry in Japan consists of 269 securities companies. The total assets of the industry as a whole amounted to US$1.56 trillion, representing an increase of 7.53% from the end of the previous year; total liabilities amounted to US$1.50 trillion, representing an increase of 7.76% from the end of the previous year; and net assets amounted to US$56.376 billion, representing an increase of 1.74% from the end of the previous year.
(ⅲ) Analysis of Assets of Securities Industry in Hong Kong, China
As of the end of 2022, there are 1439 securities dealers and securities margin financiers in Hong Kong, China. The total assets of the industry as a whole amounted to US$185,985 million, down 12.43% from the end of the previous year; total liabilities amounted to US$124,086 million, down 14.27% from the end of the previous year; and net assets amounted to US$61,899 million, down 8.48% from the end of the previous year.
II．Profitability of the Securities Industry
In 2022, the operating results of the securities industry in all major Asian economies came under pressure due to multiple factors that exceeded expectations. Specifically, the operating income and net profit of the securities industry declined, and the return on net assets also declined.
(i) Analysis of the Profitability of the Securities Industry in Chinese mainland
In 2022, the overall performance of Chinese mainland's securities industry was under short-term pressure due to the volatility of the capital market. In 2022, the industry realized operating income of USD 56.7 billion, a year-on-year decline of 21.38%; realized net profit of USD 20.4 billion, a year-on-year decline of 25.54%; and the industry's average return on net assets was 5.31%, a decline of 2.53 percentage points compared with that of the previous year.
In terms of revenue sources, the industry's sources of profitability are mainly securities brokerage, securities investment, investment banking, credit intermediation and asset management. In 2022, securities brokerage was the top source of revenue for Chinese mainland's securities industry, contributing 32.6% of operating revenue. Investment banking, credit intermediation, securities investment and asset management accounted for 16.7%, 16.0%, 15.4% and 6.9% of revenue, respectively.
In terms of revenue changes, the revenue of all major business lines in the industry declined to varying degrees. Securities investment business became the main factor dragging down the industry's operating performance, and in 2022, the industry realized a 55.94% decline in securities investment income.
(ii) Analysis of the Profitability of the Securities Industry in Japan
In fiscal year 2022, Japan's securities industry achieved operating revenue of US $26.5 billion, down 2.85% year on year; net profit reached 2.5 billion US dollars, down 37.89% year on year; the industry average return on equity was 4.53%, down 2.52 percentage points from the previous year.
In terms of income sources, the profit sources of the industry are mainly commission income from securities brokerage and securities underwriting, securities investment income and credit transaction interest income. In fiscal year 2022, commission income was the largest source of revenue for Japan's securities industry, contributing 54.6% of the industry's operating revenue. Among them, securities brokerage business and securities issuance underwriting business contributed 22.3% and 12.6% of commission income. The second is securities investment income, accounting for 20.5% of the operating income; interest income from credit transactions accounted for 24.0% of operating income.
In terms of revenue changes, interest income from industry credit transactions increased significantly, while commission income and securities investment income both decreased compared with fiscal year 2021. Industry-wide interest income from credit transactions rose 62.26% to $7.6 billion in fiscal 2022. Affected by market fluctuations, investment losses of securities products such as stocks offset investment gains of securities products such as bonds, resulting in a decline in securities investment gains. In fiscal year 2022, Japan's securities industry achieved securities investment gains of 6.5 billion US dollars, down 0.77% year on year. At the same time, due to sluggish market trading, reduced corporate financing activities and other factors, the whole industry commission income has been dragged down to a certain extent. In fiscal year 2022, the industry achieved $17.3 billion in commission revenue, down 2.93% year on year.
(iii) Analysis of the Profitability of the Securities Industry in Hong Kong, China
In 2022, all securities dealers and securities margin financiers in Hong Kong, China, realized operating revenues of US$24.8 billion, a year-on-year decline of 18.95%; realized net profits of US$2.9 billion, a year-on-year decline of 64.76%; the industry's average return on net assets of 4.52%, a decline of 8.53 percentage points from the previous year.
In terms of revenue sources, the industry's profit sources are mainly securities trading commission income, net profit from proprietary trading, interest income and other income mainly from asset management fees and securities sales fees. In 2022, excluding the impact of other income, securities trading commission and net profit from proprietary trading will contribute to 10.4% and 3.2% of the operating income respectively.
In terms of revenue changes, the industry-wide net profit from proprietary trading and income from securities trading commissions declined significantly due to the cold securities market and shrinking market turnover. In 2022, the industry-wide net profit from proprietary trading was US$800 million, a year-on-year decline of 70.97%. During the same period, the industry realized US$2.6 billion in securities trading commission income, a year-on-year decline of 35.49%.
III. Challenges and Opportunities for the Asian Securities Industry
In 2023, the global economic environment continues to face numerous uncertainties due to factors such as geopolitical turmoil and global inflation remaining high as a result of interest rate hikes in several economies. However, with the continued promotion of regional economic integration in Asia, the trade dependence between the region remains high, and the relaxation of epidemic restrictive measures in major economies such as China and Japan has provided growth momentum for the recovery of the Asian economy, and a favorable external environment and development opportunities for the high-quality development of the securities industry in Asia.
(i) Continued Steady Recovery of the Asian Economy in the Post Epidemic Era
In 2023, as the major Asian economies continue to relax the epidemic restrictive measures, intra-regional strengthening of regional cooperation, enhance connectivity, overlaid on the fight against high inflation is progressing well, the overall pace of recovery of the Asian economy continues to advance, playing the role of an important engine of the world economy. Multilateral trading systems such as the Regional Comprehensive Economic Partnership (RCEP), the Shanghai Cooperation Organization (SCO), the China-ASEAN Free Trade Area (CAFTA), and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) have provided important support for promoting regional economic integration and coordinated development of the regional economy in Asia. As the free trade area with the largest global economic and trade scale, RCEP's system and openness dividend on regional trade and investment is constantly emerging, tariff concessions, customs clearance facilitation, cross-border logistics convenience and other facilitation system arrangements, trade dependence between Asian economies continues to increase, will play a more important role in the global value chain, inject new kinetic energy for the Asian economy and even the global development. According to the latest forecast of the International Monetary Fund (IMF), the economic growth rate of major economies such as India (6.1%), China (5.2%), ASEAN-5 (4.6%) and other major economies in 2023 will be significantly higher than the global average (3.0%), and is also better than that of the United States (1.8%), Eurozone (0.9%) and other developed economies. In recent years, Asian developing economies have shown strong resilience in attracting foreign direct investment (FDI) and outward foreign direct investment (OFDI). According to the United Nations Conference on Trade and Development (UNCTAD), in recent years, FDI in Asian developing economies has been on a growing trend, reaching $661.807 billion in 2022, accounting for about half of the global flow, of which China's FDI was $189.132 billion, reaching the highest level in history. This fully demonstrates the world's expectation of the Asian market, especially the Chinese market, after the epidemic. Meanwhile, over the past 10 years, the "Belt and Road" initiative has played an important role in deepening policy communication among countries, promoting global connectivity, reshaping international trade patterns, and boosting world economic growth, and has now become a popular international public product and international cooperation platform. In the future, with the in-depth implementation of China's eight actions to support the high-quality construction of the Belt and Road, the Belt and Road will further strengthen cooperation in trade and investment among co-constructing countries, give a strong impetus to the recovery of the global economy, and make a significant contribution to the sustained and healthy development of economic globalization and the building of a community of shared destiny for humanity. All these provide important support for the Asian securities industry to seize the development opportunities, grasp the development trend, and promote the smooth operation of the global industrial supply chain.
(ii) Multi-factor-driven Diversified Asset Allocation Trend Highlighted
Influenced by multiple factors such as the continuous growth of Asian residents' wealth and the popularization of wealth management concepts, Asian wealth management institutions are facing an important period of opportunity. According to the Boston Consulting Group's Global Wealth Report 2023, the Asia-Pacific region's wealth of $179.0 trillion in 2022 will surpass that of North America for the first time, with an increase of 3.9% over the previous year, far exceeding the global wealth growth rate of 0.9%. Asian wealth is expected to reach $237.7 trillion in 2027, far exceeding developed regions such as Europe and the United States. From the point of view of wealth structure, in 2022, the wealth of Asian residents is mainly concentrated in real estate, gold, jewelry and other representations of real assets, while holding financial assets accounted for 39.8%, much lower than the level of 65.5% in North America, and with the global nearly 50% of the proportion is still a gap. With the development of Asian financial markets, changes in the supply and demand of real estate in major economies, the asset allocation of Asian residents will gradually shift from physical assets to financial assets, from savings assets to non-savings assets. Taking China as an example, with the continuous promotion of the deepening reform of China's capital market and the continuous improvement of the supply of financial products, the direction of China's residents' household asset allocation includes equity products, fixed-income products and other aspects. According to relevant forecasts, as of 2030, the size of Chinese households' investable assets could reach 70 trillion U.S. dollars, providing a broad space for the development of the wealth management industry in China and even in Asia.
In addition, in recent years, the aging trend in Asian countries represented by China and Japan has been developing rapidly. According to statistics, by the end of 2022, China's population aged 60 and above will reach 280 million, accounting for 19.8% of the national population, of which 210 million will be aged 65 and above, accounting for 14.9% of the national population; Japan's population aged 65 and above will reach 36.27 million, accounting for 29.1% of the national population. In this context, promoting the construction of the basic pension service system, accelerating the development of multi-level and multi-pillar pension insurance system, and optimizing the supply of pension financial services have become the inevitable choice for Asian countries to cope with the aging of the population. As an important carrier for promoting the development of the pension industry and accelerating the construction of the third-pillar pension insurance, the Asian securities industry has a lot to offer in promoting pension fund reserves and enhancing pension financial services.
(iii) The Concept of Sustainable Development Promotes the Green and Low-carbon Transformation of the Economy
In recent years, climate change has become the most serious threat and challenge to global sustainable development. Asia is an important powerhouse of world economic growth and the region with the largest global carbon emissions. According to statistics, 7 of the 10 countries with the largest global carbon emissions in 2022 are located in the Asian region. Asia faces the daunting task of reducing carbon and making a green revolution. By the end of 2022, 39 out of 47 Asian countries have made carbon neutral commitments. Green transition financing is an important channel for Asian economies to address climate change, promote the transformation and upgrading of traditional industries and the green and low-carbon development of energy, build a green, low-carbon and recycling development economic system, and achieve sustainable development goals. According to the Global Climate Investment and Finance Report 2021 published by the Climate Policy Initiative (CPI), climate finance flows fall far short of estimated needs, and an annual increase of at least 590% in climate finance is needed to achieve the internationally agreed climate goals for a sustainable, net-zero-emission and resilient world transition by 2030. On the other hand, Asia's green finance market is currently booming, with a proliferation of financial products such as green insurance, green finance leasing, ESG investment, and carbon trading, in addition to traditional green credit and green bonds. In 2022, China's green bond issuance in both domestic and foreign markets, which meets the Climate Bonds Initiative's (CBI) definition of green bond issuance, will be US$85.4 billion, surpassing the United States to become the world's largest green bond issuer. In 2021, China's national carbon market, the world's largest carbon emissions trading system covering the largest scale of carbon emissions in the world, officially launched online trading. By the end of 2022, the cumulative turnover of carbon emission allowances (CEA) in the national carbon market was 230 million tons, with a cumulative turnover of RMB 10.48 billion. With the gradual expansion of the carbon market in the future, the diversification of market participants, and the increasing richness of trading varieties, China's carbon trading market will further develop and grow. The rapid development of China's green finance and its increasing attraction and influence on the world have provided new ideas for Asia and the world to develop green financial markets, promote energy saving and emission reduction, and realize green development. As an important practitioner of green finance in the Asian region, the Asian securities industry continues to strengthen green financial cooperation, share and develop green development concepts and effectiveness, and give full play to the professional advantages of all parties to promote the green low-carbon development in Asia to achieve more positive progress.
(iv) Digital Transformation to Promote the Deep Integration of Science, Technology and Finance
Nowadays, the world's unprecedented big change is accelerating, the new round of scientific and technological revolution and industrial change is developing deeply, and science and technology innovation has become the main battlefield of international strategic game and an important engine for the development of human society. The Internet, big data, artificial intelligence, blockchain and other digital technologies have become "key variables" to change the world. The rise of generative AI represented by ChatGPT can better unleash productivity, change production relations, innovate business models, drive industrial transformation, and catalyze application scenarios. The new form of society represented by the meta-universe is expected to innovate technology and collaboration methods, further improve production efficiency, create new industries, new business forms and new models, and promote the transformation and upgrading of traditional industries. In recent years, Asian economies represented by China and Japan have continued to increase R&D investment in the field of digital science and technology, and Asia has become the core region of global innovation. According to the Global Science and Technology Innovation Center Development Index 2022released by East China Normal University at the first World Geography Conference in Shanghai, the distribution of global science and technology innovation centers was "North America-Asia-Europe" three-legged pattern, Tokyo, Beijing, Seoul, Shanghai among the top 10 list. In 2022, the Chinese Government proposed to accelerate the implementation of science and technology innovation-driven development strategy. Adhere to the world's scientific and technological frontiers, facing the main battlefield of the economy, facing the country's major needs, facing the people's lives and health, and accelerate the realization of high-level scientific and technological self-reliance and self-improvement. This provides a fundamental guideline for China to build a world power in science and technology, and to promote the construction of international science and technology innovation centers and regional science and technology innovation centers in a coordinated manner. In 2023, the Japanese government formulated the implementation content of the 3rd year of the 6th Science, Technology and Innovation Basic Plan, the Comprehensive Innovation Strategy 2023, which clarifies the promotion of cutting-edge science and technology, strengthening of the knowledge base and human resource development, and formation of an innovation ecosystem are identified as key elements. According to the FY2024 budget released by the Japanese government, $1.11 billion is sought for AI-related expenditures. The development of technology and the science and technology policies of major Asian economies have created favorable conditions for the region to drive change and enhance its international competitive position. The Asian securities industry has continued to optimize and improve its digital finance and inclusive financial services model by strengthening its technology-enabled finance efforts to enhance the accessibility and quality of securities and financial services. At the same time, it will give full play to its own professional advantages, further increase the strength of the capital market to support technological innovation, and promote the formation of a good ecology of financial support for science and technology.
IV. Prospects for the Development of the Securities Industry in Asia
In the face of the uncertainty and instability of the world situation has brought serious challenges to Asia, the Asian securities industry firmly grasp the major opportunities for the stable development of the Asian region's economy, to strengthen openness and cooperation, and actively promote the interconnection of the financial infrastructure, and constantly improve the supply capacity of the regional financial public products and services, to turn uncertainty into an opportunity to achieve common development, and to contribute to the promotion of the stability of the Asian economy and sustainable development.
(i) Focusing on Serving the Real Economy and Contributing to the Security and Stability of the Industrial Chain and Supply Chain
At present, the global industrial chain supply chain is accelerating reconstruction, and maintaining the stability and smoothness of the industrial chain supply chain has become the focus of promoting high-quality economic development. In recent years, the Asian region plays an important role in the reconstruction of the global industrial chain and supply chain. In the context of accelerating regional economic integration in Asia, give full play to the role of the Asian securities industry as an important intermediary in the capital market, promote the transformation and upgrading of traditional industries and the cultivation and development of new industries to grow and develop, and continuously improve the resilience and competitiveness of the Asian industrial chain supply chain. First, to help create an open innovation ecology for the industrial chain supply chain. The capital market has a unique risk-sharing and benefit-sharing mechanism, which has an irreplaceable role in promoting the formation of innovative capital and empowering the transformation of scientific and technological achievements. With the help of the capital market, the Asian securities industry can better promote the transformation of social savings into investment, guide more social capital into the key industrial chain supply chain, focus on the new generation of information technology, high-end equipment, new materials, new energy and other key areas. By providing angel investment, stock and debt financing, mergers and acquisitions, risk management and other integrated services, the company will smooth the "science and technology-industry-finance" virtuous cycle, continuously improve the transformation of scientific and technological achievements and the level of industrialization, and strive to build a globally competitive industrial chain supply chain ecosystem. Secondly, we will help build the "Belt and Road" with high quality. Focusing on the huge demand for connectivity in the "Belt and Road" countries, we will continue to deepen cooperation in the financial field, continue to innovate investment and financing methods, and enrich financial products such as equities, bonds, funds and indices, so as to promote the development of domestic and foreign capital, technology, information and other factor resources in the "Belt and Road" countries, to promote the reasonable flow and two-way circulation of capital, technology, information and other factor resources in the countries where the "Belt and Road" is being built, and provide solid financial service support and guarantee for the construction of the "Belt and Road". Gradually improve the international business layout, expand the international investment and financing service platform through the establishment of offices, new or acquired branches, etc., and further enhance the awareness and ability to serve the infrastructure interconnection and sustainable economic and social development of the countries jointly constructed under the "Belt and Road".
(ii) Focusing on the Demand for Asset Allocation to Help Residents Preserve and Increase the Value of Their Wealth
In the face of the severe and complex international political and economic situation, globalized and diversified asset allocation has become a useful channel for residents to diversify risks and seek to preserve and increase the value of their assets. The opening up of Asian financial markets has provided good facilitating conditions for globalized asset allocation, and the Asian securities industry has been able to strike a balance between meeting investors' cross-border investment needs and the company's high-quality development. First, gradually improve the investment research system covering both domestic and overseas markets. Through overseas branches or cooperation with overseas financial institutions, the company actively participates in global asset allocation, continuously improves its comprehensive capabilities in product design, investment research and risk management, builds a professional investment consultant team, focuses on the diversified investment needs of investors, and continuously improves the quality and efficiency of investor services by optimizing the account-opening process, perfecting customer consulting, and strengthening investment guidance, etc. The company strives to provide investors with financial products and asset allocation portfolios covering different categories of domestic and foreign currency markets, equity markets, fixed income markets, commodity markets, etc., so as to effectively diversify investment risks and grasp investment opportunities in different markets and asset classes around the world. Secondly, build a differentiated service system to meet the needs of different customer groups. The continuous accumulation of residents' wealth and the increasing popularization of financial management knowledge have led to the differentiation of wealth management needs among different customer groups. Focusing on the characteristics and asset allocation needs of different customer groups, such as high-net-worth customers, affluent customers and the general public, a multi-level, wide-coverage and differentiated financial service system to realize sophisticated management at different levels will be built. Continuously strengthen the professional advantages of the securities industry in customer resources, asset management, product allocation, risk management, etc., to build a pension financial service system that accompanies the whole life cycle, and support the majority of consumers in formulating scientific and reasonable investment and financial planning. We will continue to enrich the system of pension financial products, promote the virtuous cycle between the three pillars of pension and the capital market, and gradually transform "saving for retirement" into "investing for retirement".
(iii) Focusing on the Supply of Green Finance to Help Inject New Momentum into Economic Development
At present, the development of green finance has become a broad consensus among the world's major economies. Countries around the world are actively developing green financial markets, promoting the transformation of the economic development mode to green and low-carbon, and continuously enhancing the international discourse and influence in the field of green finance. The Asian securities industry has continued to improve green financial standards, innovate green financial products and services, improve environmental information disclosure, and continuously improve the ability and level of green financial services for the green transformation of the economy to help the world realize carbon peak carbon neutral and make financial contribution. First, strengthen international cooperation in green finance. We will continue to enhance the supply capacity of public funds, bonds and other financial products, closely track market demand, jointly research and develop innovative green financial products, actively serve PE/VC investment in the field of green science and technology, continue to promote the construction of a multi-level green financial system, and guide the flow of more social capital to the fields of low-carbon, environmental protection, renewable energy and so on. We will further expand the carbon financial market, continue to enrich and improve carbon market trading tools, carbon market financing tools and carbon market support tools, and effectively play a positive role in price discovery and risk management of carbon financial products, so as to assist the transformation and upgrading of traditional enterprises and the development of green and low-carbon. Secondly, promote steady and long-term ESG investment. As the main market participant, securities management institutions should continue to enhance their knowledge of ESG concepts, integrate ESG investment into their corporate development strategies, establish a sound ESG organizational structure, and promote the internalization of core concepts such as environmental protection, adherence to business ethics, and improvement of corporate governance in their minds and in their actions. Improve the quality of ESG information disclosure and enhance the transparency of operation and decision-making. Effectively bring into play the unique advantages of securities management institutions in providing integrated finance and promoting the integration of industry and finance, explore the design of innovative ESG financial products, continuously strengthen the research on ESG-related theories and investment strategies, improve the ESG investment framework, and promote the high-quality development of the green economy through the ESG investment practice of value investment and long-term investment.
(iv) Focusing on Financial Technology Empowerment to Help Improve the Quality and Efficiency of Financial Services
With the vigorous development of digital technology, the digital economy is becoming a key force in reorganizing global factor resources, reshaping the global economic structure, and changing the pattern of global competition. Digital transformation has become an important hand for financial institutions to enhance their ability to serve the real economy, shape their core competitiveness and move towards high-quality development. First, promote the integration of technology-enabled business development. Based on its own advantages and business characteristics, the Asian securities industry, from a strategic height and global perspective, organically integrates digital transformation with the company's strategy, conducts in-depth research on the application and practice of new-generation information technology, such as big data, artificial intelligence, cloud computing, blockchain, 5G, etc., in different business scenarios, realizes the in-depth integration of fintech and innovative business, and continuously improves the convenience and satisfaction of financial consumers. We have accelerated the penetration of fintech in the front, middle and back offices of the securities industry, reshaped the value chain of the Company's business, strengthened the integration between business platforms, and enhanced the effectiveness of internal synergies. Second, fully explore the value of data assets. The financial industry is an industry that naturally generates massive amounts of data. Structured or unstructured data formed by securities trading, market quotes, financial statements, etc. are not only by-products generated during the operation of the securities industry, but also core elemental inputs to promote the development of securities business. In the digital economy, data has become a core asset. By collecting, storing, processing, circulating, analyzing, applying and safeguarding data, we can maximize the richness of the data elements, and under the premise of compliance and safety control, securities operators can effectively identify the hidden characteristics, laws and logic behind the huge amount of data, continue to improve the company's operational efficiency, and provide more accurate investment, wealth management and financing services for the real economy and residents, and enhances the universality and adaptability of securities financial services.
As the main engine of the world economy, the major Asian economies represented by China have successively adopted more effective policies and measures to promote economic growth, and the integration process of production, trade and investment in the Asian region has accelerated, with the depth and breadth of financial cooperation expanding continuously. Looking ahead, the Asian securities industry in maintaining the stability of the global industrial supply chain, high-quality co-construction of the "Belt and Road", and actively respond to the aging and climate change and other aspects of the major opportunities, through the strengthening of professional strengths, strengthen the financial openness and cooperation, and continue to play a good role as a bridge between the real economy and the capital market, in the international financial arena, so as to make the "voice of Asia" and contribute to the financial power of Asia in the international financial arena, and to inject more certainty into the sustained development of the Asian regional economy and the global economy.
【This article is AFCA Working Paper No. 2024-16/179】
Expert Biography
Xu Shida, Fellow of Asian Financial Cooperation Association Think Tankers Committee and the Director of the Membership Management Department of the Securities Association of China. He has CFA and FRM certificates. During his tenure at the Securities Association, he is mainly responsible for the statistical analysis of the operation of the securities industry, stress testing of risks in the securities industry and research on the development of relevant businesses in the securities industry. His duties mainly include: researching and formulating statistical indicators of the operation of the securities industry, regularly compiling and releasing operational data of the securities industry, and regularly analyzing the development of the securities industry; regularly organizing the securities industry to carry out risk stress tests, and tracking the changes of industry risk control indicators and early warning; promoting the securities industry to strengthen the research related to serving the national strategy, and forming research results; organizing and carrying out industry research, and collecting the demands and suggestions of industry institutions on the capital market and industry development.
About AFTTC
No. 2024-01/164 Hubertus Väth：Current Situation and Cause Analysis of Inflation in Asia
No. 2024-11/174 Mohd Sedek Jantan, Analysis on sales appropriateness for Finfluencer in the digital financial environment
No. 2024-12/175 Chen Weidong, Uncertainties in Asia’s Future Economic Development
No. 2024-13/176 Chen Weidong, Dynamics of Future Asian Economic Growth
No. 2024-15/178 Chen Weidong, Review and Outlook of the Asian Banking Industry from 2022 to Mid-2023
