US investment fund worth 6 trillion leaves Hong Kong and Tokyo and moves to Shanghai
The Vanguard Group focuses on the Chinese market. Shanghai and Shenzhen on the rise after the collapse due to the first wave of Covid-19. World of production bucks the trend and hastens plans to leave China and return to their countries of origin, especially the United States, the European Union, Japan, Taiwan and India.
Shanghai (AsiaNews) - The financial giant Vanguard Group will move its operations in Asia from Hong Kong and Tokyo to Shanghai. The US investment fund decision, revealed today by Caixin, bucks the trend of the Trump administration policies, which contemplate decoupling the US economy from that of China.
Vanguard Group manages funds worth 6.2 trillion dollars (over three times Italy’s GDP ed). A spokesperson for the company explained that the move is dictated by the desire to focus on the Chinese market. After the collapse caused by the outbreak of the pandemic in January, Chinese stock exchanges recovered and increased their value, exceeding the average of the world lists.
Moreover, the creation of two technology indexes on the model of the Nasdaq in New York - Star Market in Shanghai and ChinaNext in Shenzhen - make the Chinese stock market even more appetizing.
While US financial giants continue to bet on China in the midst of the geopolitical war between Washington and Beijing, the industrial world seems more inclined towards following President Trump's call for greater economic separation between the two powers.
The US government is studying a measure to incentivize US companies to leave China and return to their homeland - or to relocate their businesses to an allied country. In fact, this is a trend that began 10 years ago due to the increase in the cost of Chinese labour: The Covid-19 pandemic, trade and technological wars between the two superpowers have accelerated it.
A recent Bank of America study revealed that the coronavirus emergency has destroyed 80% of global supply chains, of which China is the main manufacturing hub. This scenario has prompted 75% of companies operating in foreign markets - especially those from the US, the European Union, Taiwan, Japan and India - to expand their efforts to bring industrial activities back to their countries of origin.