By Simon Miller
Regulation will continue to be the greatest challenge for the global finance industry over the next five years according to a survey of senior members of the Asian finance community.
The survey by Kinetic Partners found that almost half believed that regulation continued to be the biggest risk for the finance industry.
A fifth of respondents believed that liquidity would be a greater challenge, whilst 15% anticipate that ineffective governance will cause the most trouble for the industry in the coming years. Restrictive tax regimes are not considered to have a significant impact on the global industry.
Singapore is emerging as an increasingly popular financial centre with 40% of respondents selecting the country as a preferred business location in the Asia Pacific region, compared to 35% choosing Shanghai and just 3% opting for Tokyo.
Regarding the performance of Hong Kong’s stock market, there is an optimistic sentiment for the Hang Seng Index for the remainder of the year, with 44% predicting a significant increase by year end and just under half of respondents predicting it will remain the same or slightly above current levels.
Julian Korek, a founding member of Kinetic Partners, commented: "The continuing concern for the impact of heavy regulation on the health of the global financial services industry remains a worry for the future growth and success of our sector”.