The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

ING - Private Banking Asia

By Chew Soon Gek, CFA

Neo Teng Hwee, CFA

Nigel Tan

Geographic focus: Asian equities

Client Profile: Male or female aged 18 to 60. Client has surplus cash and can take some impairment to capital.

Risk: Above average volatility

Time frame: At least 3 years

A new peak for Asian equities?

Asian equities still beckon.  Asia today has a wider choice of quality companies with interesting growth prospects compared to the early 1990s.  The markets are moving from a liquidity-driven phase to an earnings-led recovery.  For 2004, we expect earnings growth of more than 20% on a forward multiple of 19x.  Asia trades at a discount to the world markets on P/BV, but with similar ROE.  There is plenty of liquidity in the banking system, with Asia's local investors sitting on US$2.1 trillion of bank deposits.   This stands at 140% of GDP versus an average of 85% between 1991 and 1997.  The Asian corporate balance sheet has been cleaned up, with net debt to equity at 38.5%, the lowest leverage rate over 20 years.

The long-term sustainable economic growth rate of Asia will be significantly above the developed world due to continuing labour supply growth and productivity improvements.  Demographics are on her side. 

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree