HSBC global survey finds widespread shipper confidence in trade's increase

PROSPECTS for world trade, particularly trade with Greater China, are bright, according to a global survey of 6,390 small and medium sized shippers in 21 countries conducted by HSBC between February 17 and March 30.


"The survey points to more sustainable and balanced trade and new markets for traders around the world. The role of Greater China as the new axis for global trade continues as traders look to this region for the greatest for growth," said a statement issued at a press conference yesterday in Hong Kong.


"The HSBC Trade Confidence Index points to two important trends - strengthened intra-regional trade and greater connectivity with and within emerging markets. Greater China, in particular, promises to boost prospects for traders around the world," said the statement.


Another finding was that the RMB - the Chinese yuan - is now in third place as a preferred currency of trade settlement, behind the US dollar and the euro, HSBC Greater China supply chain chief Christopher Lewis told the media at the bank's Hong Kong headquarters yesterday.


"As global trade prepares to increase with Greater China, the use of the RMB to settle trade in the next six months is gaining momentum being led by traders in Greater China the Middle East and North Africa and south east Asia," said the statement issued by the bank.


Another finding was that India beat all other countries for shipper confidence by a considerable margin in all questions asked from worries about currency fluctuations to global economic optimism.


While the level of confidence was highest among the emerging markets of India, Saudi Arabia, and Mexico, sentiment across traders in the world's top export markets, namely, China, Germany and the US were also solid with the China and US indices strengthening by three points each.


Malaysia was the only developing country to have gloomier outlook, but Mr Lewis attributes this to local worries about the stability of the ringgit at the time of the survey.


"Developed markets recognise the emerging markets as a driver of growth and plan to expand relationships with them in the short term. In the US, more than a quarter of respondents are looking to Greater China for growth while over a tenth of their counterparts in China see further growth potential with the US in the next six months," said the HSBC statement.
(Source:http://www.schednet.com)