Asia's Investment Surge;Goldman Sells China Stake

The mood is very upbeat,said Nick Good,Head of Strategy and Business Development Asia Pacific for BlackRock,attending the CFA Institute Annual Conference in Singapore.Asians believe in Asia.Seventy percent or more of any given portfolio is invested in Asia,and 50% of capital markets growth will take place in Asia.
We're seeing the rise of the Asian investor.Wealth in China has increased tenfold.Asians need to invest for the long term,and that dynamic will inform the growth of the region.They are looking for bond and income funds that meet their needs.
We are developing funds that cater to that market and educating about long term investing.We try and take a broad view of the markets,providing both active and index funds.You're seeing an emphasis on income funds.
Goldman Sachs says it is committed to China,despite its recent sale of a minority stake in the Industrial and Commercial Bank of China.Goldman unloaded its seven year investment in ICBC for 1.1 billion dollars.Macquarie Capital Securities Ltd estimates Goldman made about 12 billion dollars in dividends and sale proceeds on its 2.58 billion investment in ICBC.Many banks are selling such holdings to cover the new,more stringent Basel III capital requirements.
The world just went through a big trauma,a credit crisis,said CEO Lloyd Blankfein.Not all the fixes work.Sometimes the fixes need fixes.
BlackRock(BLK),Goldman Sachs(GS)

Advert Chief Shares Outlook-plus ICBC earnings

The UK and Germany bookend Europe,with Italy,Spain and France in distress,according to Sir Martin Sorrell,noted British advertising magnate.We saw a step change downwards in September advertising.There's an overall problem across the world,including some of the fast-growing markets.
Long term indications are starting to show some signs of flipping up.Maybe mid-2013 we will start to see some uptick in the private sector.
We have to get used to this slow recovery in the Western world.It's very uncomfortable for us in the West to come to terms with the growth engines being in the East,Mr.Sorrell admitted.
Industrial and Commercial Bank of China earned the most money in the banking sector last quarter.The bank's 10 billion dollar income was a Q3 record,and the company could set an earnings record on the year as well.The world's biggest bank,ICBC beat the earnings estimate on increased credit demand.Its market capitalisation is about equal to that of JP Morgan Chase,Goldman Sachs and Bank of America put together.
Barclays Capital says China's oil demand will grow 3.6% in 2013.
Sir Martin Sorrell is co-founder and CEO of WPP Group,the world's largest marketing communications company.
Industrial and Commercial Bank of China Ltd(ICBC)

Global Growth Faces Hazards

David Wyss,Global Chief Economist at Standard&Poor's,notes that 9% growth has been average for China for the past 30 years.Now its trading partners are slowing down.Falling end demand and rising commodity prices will slow China's growth.In the U.S.,there is a 30% chance of a double dip recession,with housing being much worse than expected.So far,we haven't seen the Chinese consumer growing fast enough to sustain 9-10% GDP growth by themselves.
In Europe,you've got stellar German growth,but the rest are looking pretty sick.The European Central Bank was very late off the block in lowering interest rates.The price correction hasn't gone as far there as it has in the U.S.Southern Europe will want lower rates,but Northern Europe will want higher,Mr.Wyss points out.
Chinese companies have been reporting their Q2 earnings.Industrial and Commercial Bank of China saw a 38% rise in profits,while Bank of China reported a 27% climb,and PetroChina 4%.Multinational firms are counting on robust Chinese growth to get them through the tough days.China reported good manufacturing results on Wednesday.

HSBC Sees Steady Growth

British bank HSBC's profits have doubled.Peter Wong,CEO of the bank's Asia-Pac division,says that this year the growth is quite sustainable.The loan growth has not had its full impact yet.Hong Kong is definitely a pocket of strength.So are Malaysia,Singapore,mainland China,India and Australia.Over the next couple of years,European GDP will be pretty low,affecting China,but China will still have a GDP of 10% this year and 8.5-9% in 2011.
HSBC has done a lot of background work to list in mainland China's stock market.China says it is a high priority.HSBC continues to build 15-20 branches a year in China.In India,they are gonna buy RBS assets,but mainly HSBC is growing organically.In China,HSBC has invested in ICBC and Ping An Insurance.
HSBC is very cautious in its mortgages.Customers do not pay more than 15% of their income.HSBC's portfolio is quite secure.
If Hong Kong continues to increase,it will form a bubble.It is stable for now,in Peter Wong's estimation.
HSBC Holdings,plc(HBC)