Global Private Banking Investment Outlook Report Remaking Asia’s Future Against a challenging macro control measures and stop excessive backdrop of global downturn, Asian Our four high conviction themes local containment restrictions marked economies continue to stand out as an important milestone in the gradual a relative safe haven with resilient 1. Asia’s Reopening Winners relaxation of the Zero COVID policy. We domestic fundamentals to weather 2. ASEAN Tigers expect China will likely announce more the recession risks. We believe meaningful reopening measures after Asian economies can maintain their 3. Asia’s Green Transformation the State Council leadership reshuffle relative outperformance against the 4. Asian Quality Credit at the National People’s Congress in global peers with silver linings of March 2023 when booster vaccinations accelerating economic reopening Our new High Conviction Theme of are ramped up more broadly across the and more growth supportive policy Asia’s Reopening Winners focuses on nation in the coming months. initiatives. China’s recent pivot beneficiaries of the widening reopening We expect North Asian economies, towards gradual relaxation of trend across the region. The 20 new including Mainland China, Hong Kong, the Zero COVID policy and more measures announced by China’s Taiwan, South Korea and Japan, should comprehensive policy support for National Health Commission to cut feel the largest positive impact of the property sector are notable quarantine time, optimise pandemic reopening in 2023 given their border drivers to support its gradual Asia has the largest potential upside in reopening growth recovery in 2023. We expect GDP growth in Asia ex- 100% Japan to accelerate to 4.5% in 2023 ­ s 24% from 3.9% in 2022, which is still l 26% e v80% 35% respectable compared with many  e 40% 43% s l developed economies which should l 1 va0 i r see close to zero growth in 2023. r f 260% t a 86% s We believe a recovery in China’s i r s % o u consumption and investment amid o 2 a l t2 a 040% its gradual reopening would boost  o i  2 the overall growth outlook for the t l a u  r region, given China is the single e t   20%   r largest trading partner of 16 major a u Asian economies.  a  0% Our Top Trend of Remaking Asia’s Middle East Europe Americas Africa World Asia Pacific Future looks for the most attractive % recovered % ot et recovered structural and tactical opportunities in the region. Source: UNWTO, HSBC Global Private Banking, 22 November 2022. 14