Asia will still benefit over the next year or two from its financial strength despite being hit by stock market falls in recent weeks, according to Hugh Young, MD of Aberdeen Asset Management, Asia.
He says Asia’s outlook is extremely solid as it has not committed the sins of the West as its financial institutions have "by and large avoided the weird and wonderful world of derivatives". Young comments: "Financial institutions are essentially plain vanilla; old fashioned banks…institutions remain in extremely good shape, as do Asia’s governments and we have seen the power of sovereign wealth funds." He also believes cash at stock level remains exceptionally strong and company balance sheets are in exceedingly good shape. Young is sitting on his hands concerning the Asia Pacific ...
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