The following article appeared on Citywire selector on the 23 November 2020.
The Regional Comprehensive Economic Partnership (RCEP) has thrust Asia to the forefront of trade, with the pan-continental agreement being the world’s largest in GDP and population, while it lies second to the EU in value of goods.
The RCEP has also further strengthened China’s presence in the region, as it tightens its links with Japan, South Korea, New Zealand, Australia and the other Asean markets. This will be achieved through a series of ambitious tariff roll backs between its members.
While the geopolitical and macroeconomic implications are huge, what does it mean for fund managers focused on the region? Vipul Mehta, head of Asia Pacific ex Japan at Nomura Asset Management, is among those who believe it cements China as the powerhouse of Asia.