Insights
Hong Kong prepares to move its cash market to T+1 settlement
Hong Kong is preparing for T+1 settlement transition in Q4 2027. This marks a major post-trade market structure change, aligning its cash market settlement cycle with the US, Europe, and other major capital markets. The shift will pressure operational readiness, automation, settlement efficiency, FX funding, and cross-border liquidity management for brokers, custodians, asset servicing teams, and global investors.
Hong Kong sets high bar for stablecoin issuance with first licences
Hong Kong awarded the first stablecoin issuance licences to two note-issuing banks, making it clear that stablecoins will be treated as regulated payment and settlement infrastructure, not a frontier for speculation. The real test now lies in building profitable and sustainable use cases.
Asian sovereign funds: The new playbook
As Asian sovereign wealth funds’ total assets surged to US$6.1 trillion in 2025, the landscape has transformed significantly over the last decade as new entrants emerged, shifting their focus from merely saving wealth to actively building it. They are no longer just guardians of wealth; they have become architects of national destiny.
Singapore’ VCC funds: a “differentiating factor”
Singapore’s Variable Capital Company (VCC) fund structure has, in just five years, become globally competitive for a diverse array of investment strategies. It has become one of the city-state’s key differentiators as a global asset management hub.
China’s fund industry reshapes
China's US$4.4 trillion mutual fund industry is facing a historic shake-up. Sweeping fee reforms, the rise of passive investing, and explosive growth of money market funds are forcing an industry-wide consolidation. A new market hierarchy is emerging where winners leverage scale and digital expertise, while vulnerable players face an existential threat.
Asia’s shift beyond the dollar
From local currency trade and gold accumulation to CBDCs and cross-border payment corridors, de-dollarisation in Asia is unfolding steadily and strategically. The region is taking steps toward a gradual shift to a multipolar currency landscape to secure greater financial sovereignty, relying less on the US dollar.
Taiwan’s big ambitions
Taiwan’s big ambition as Asia’s Next Asset Management Hub
Taiwan is positioning itself as a leading asset management center in Asia, joining Japan in a regional race to attract global investment. With bold regulatory reforms and market-opening initiatives, Taiwan has gained strong momentum, but significant challenges still lie ahead in its quest to become a top-tier financial hub.
The stablecoin race
The world of digital finance is undergoing a profound transformation as stablecoins move into the mainstream, disrupting traditional finance and emerging as tools for geopolitical and financial contests. The US push for stablecoins aims to ensure that the next generation of global payments operates through its financial infrastructure. The stakes are high for many countries.
Japan at an inflection point
Japan’s asset management industry has been undergoing a significant transformation in recent years. Regulatory reforms and global capital flows have spurred meaningful growth in this traditionally conservative market. But unless Tokyo can address its structural challenges, its ambition to emerge as Asia’s leading powerhouse in asset management may not realise.
Revitalising Singapore’s stock market
Singapore’s stock market has long been viewed as “boring”. Last August, the government established an equities market review group to explore solutions for rejuvenating the stock market. But initial measures announced thus far do not address fundamental issues.
US Sovereign wealth fund: a game changer?
Donald Trump signed an executive order on February 3 to create a US sovereign wealth fund. Despite many issues that have to be addressed, the fund could fundamentally reshape global investment flows, economic partnerships and geopolitical dynamics, ushering in new complexities beyond the ongoing tariff wars.
A new dawn for Chinese quants
China’s quant industry faced a perfect storm of challenges over the past few years due to wild market volatility and tightened regulatory restrictions, leading to significant drop in total AUM and fund closures. The emergence of DeepSeek, created by High Flyer Quant, has reignited confidence in quant strategies and redefined possibilities.
Cryptocurrencies: from “scam” to reserves
Cryptocurrencies are entering a new era of growth under US President Donald Trump’s vision to make America the “crypto capital of the planet.” The potential creation of a strategic bitcoin reserve could profoundly reshape the global financial order.
Family office boom
Asia's family office boom drives wealth and innovation, attracting several countries competing to become a hub for them. However, it also presents some unique challenges.
Stock Connect: A pioneering journey
The success of Stock Connect has revolutionized market access for cross-border investments since its launch a decade ago. As Hong Kong's financial market seeks its next engine of growth, Stock Connect serves as an inspiration for the potential development of a Hong Kong-Middle East Corridor.
A new landscape for Chinese mobile payments
Regulatory crackdowns and changing industry dynamics have triggered a ground-shifting change in China’s mobile payment industry, which has now entered a new era where collaboration and competition co-exist.
Digital assets hub
Hong Kong has made significant strides in reinventing itself as a leading digital assets hub, a strategic step in its plan to rejuvenate the city’s appeal as a global financial centre. But the regulators are walking a tightrope in balancing risks and innovation.
Bhutan: seeking new balance
Grappling with economic and geopolitical challenges, Bhutan’s newly elected government is taking bold steps to pursue an updated framework – gross national happiness 2.0 – for revising the path to sustainable development.
What’s next post T+1?
The US, along with Canada, Mexico, Argentina, Peru and Jamaica, successfully migrated from a T+2 settlement cycle to T+1 in late May, joining India and China as trailblazers in settling trades just one business day after transaction. The total stock market capitalisation of these eight countries combined accounts for over 60% of the global market. This not only spurs other markets to expedite their own transitions to T+1, but also sparkles interest in looking for ways to slash the settlement cycle further.
SWIFT remains dorminant
SWIFT’s expulsion of seven Russian banks from the system two years ago has triggered various solutions to emerge, ranging from multi-country payment networks, digital instant payment systems, fintech solutions, CBDC cross-border projects, to cryptos. This aligns with the global demand for more diversified and less centralised channels for financial transactions.