Net FDI in Hong Kong improves

The country has historically run a large FDI flow deficit, noted HSBC.

HSBC Global Research said, “We should point out that the story for Hong Kong and Korea is made slightly less compelling given the notable size of portfolio flows in both economies compared to FDI. However, the data are still reflective of the regional trend.”

Countries with traditionally quite large negative FDI flows are starting to see the deficits decline, HSBC commented. Economies with a strong history of FDI, on the other hand, are expected to see flows increase and their currencies benefit.