News labeled asia:

SEB’s economists have raised their forecast for China’s GDP growth to 8.5 per cent in 2012 and 8.7 per cent in 2013 following growth of 8.9 per cent in the fourth quarter of 2011. The economists say that as long as the euro zone debt and banking crisis does not spread globally there’s a chance growth could exceed the forecast.

The Japanese economy is still recovering and SEB’s economists remain relatively optimistic on the near-term growth prospects, helped by further reconstruction work.

Still, yen appreciation is hurting the export sector and consequently the economists have sliced a few tenths off of the 2012 GDP forecast. Real GDP will grow 1.7 per cent and 1.2 per cent in 2012 and 2013, respectively according to an updated forecast.

It’s official. SEB is back in business in Hong Kong. CEO Annika Falkengren formally opened the bank’s premises in the city’s financial heart on Friday (11 November) at a gala reception for more than 200 customers and local dignitaries. In her opening speech Falkengren talked of returning to the city  with "a much wider Asian footprint with more extensive resources and a broader range of offerings across our operations. This enables us to support you - our customers - from a much more holistic perspective.”

SEB, the first Nordic bank to offer trade-related service for off-shore renminbi (referred to as CNH), can now also provide improved capabilities on-shore in China, making it a one-stop-shop for payments in and out of the country.

SEB’s experts believe effects on financial markets and the economy from the earthquake and tsunami in Japan will be short lived while nuclear problems pose a big risk.

The economists have assembled a chart package on possible economic effects from the earth quake. Among others they have included charts on growth and financial markets after Kobe quake, hurricane Katrina 2005 and the 9-11 terror attacks 2001. There are also some charts on the Japanese energy sector, implications for oil prices and Japanese holdings of US bonds.

Their main scenario remains that the impact on growth will be limited and that central banks will hike according to plans. They also discuss a risk scenario for growth and central banks if the nuclear damage should deteriorate.

Northern European subsidiaries operating in China have a more bullish outlook on the economy than those from other regions, according to SEB's latest China Financial Index, with 80 per cent of those surveyed indicating a positive or very positive outlook on market prospects.

 During the World Expo 2010 in Shanghai, SEB has stepped up efforts to position itself as the gateway to the Nordic markets for Chinese financial institutions. The timing is right as the Chinese government has started to cautiously relax controls on the flow of capital in and out of the country.

As official partner of Sweden’s participation at Expo 2010 Shanghai, SEB had the opportunity to organize the seminar “China’s Challenge”, covering many of the complex issues facing China and world. Some 240 corporate clients, financial institutions, and private banking clients based in China, Asia and Europe attended the seminar. SEB also had the honour of hosting a dinner at the Swedish Pavilion.

Expo 2010 Shanghai. Sweden’s participation at the Expo is a joint partnership between the Swedish government and the business community, with SEB as one of the official partners. From 1 May to 31 October 2010, more than 228 countries and international organizations, thousands of companies and more than 70 million people are expected to descend on Shanghai.

In the May issue of Commodities Monthly SEB's experts say industrial metals prices look set to ease going into the second half of the year as Chinese construction activity slows down. Hear Bjarne Schieldrop, head of Commodities Research at SEB, talk about this and more in the filmclip below. Click the headline to access the full report.

SEB has received approval from People Bank of China to become a member of the national clearing system CNAPS, enabling the bank to offer a complete and more efficient cash management solution in China.

SEB’s most recent China Financial Index survey shows that senior managers at Northern European companies’ subsidiaries in China foresee a continued improvement in business prospects. Companies are now moving to a more aggressive strategy with increased investments and more recruitment there.

SEB is the first Nordic bank to provide cross-border trade related settlement and account services including cross-border payments and foreign exchange transactions in Chinese currency Renminbi (RMB) to all corporate customers for settlement of eligible trade transactions outside China.

SEB last week extended its current banking relationship with the Industrial and Commercial Bank of China, ICBC, to include an agreement that will strongly contribute to SEB Shanghai's funding in the local Chinese currency.