Competition between stocks, real estate, and gold… Where will Asian investments go after the bankruptcy of FTX?

The bankruptcy of cryptocurrency exchange FTX has sent anxiety and panic into the cryptocurrency investment markets.
And investment institutions around the world are asking questions about the future directions of capital, specifically those that have been accustomed to investing in cryptocurrencies in recent years, and how they can reposition themselves in the markets in the next stage, especially with the growing state of economic uncertainty in international markets and high inflation rates. And the shock that hit the markets after the bankruptcy of FTX.
However, the most urgent question at the international level was related to Asian capitals and the investment direction they would adopt in the coming period.
The interest in Asian capital and its investment trends is due to the fact that, unlike other global markets that feel violent pressures as a result of high interest rates and inflation, the Asia-Pacific region is one of the few regions whose economies are growing, and this has created the strong positive position of Asian capital and violent vibrations in the currency markets There is speculation that it will return to investing heavily in traditional assets, whether stocks, bonds, real estate, or other traditional investment patterns.
But what is the weight of Asian investors in the cryptocurrency world, specifically in the bankrupt exchange FTX?
Explains to the “Economic”, L. Scotty, a financial analyst in the field of cryptocurrencies, commented on this situation, saying, “Investors in Asia are relatively underweight in cryptocurrencies at the present time, and according to available data for the past year, only 19 percent of family wealth in Asia is invested in cryptocurrencies compared to 31 percent in.” North America and 28 percent in Europe. However, more than half of those responsible for managing family wealth in Asia – specifically 53 percent of them – praised cryptocurrencies as a promising investment, despite the recent shake-up in the markets, compared to 43 percent in North America and 33 percent. in Europe”.
Chinese investors are the striking forces of the investment forces in the Asian continent in general and in its eastern part in particular, and this is what makes them the most seeking to compensate for their financial losses from unprotected investments in the FTX stock exchange, as approximately 8 percent of the dealers in the FTX platform are from China, although Although local laws prohibit trading in cryptocurrencies.
For her part, Janet Lyon, a banking expert at Nate West Banking Group, says to the “economist” that China was the third largest market for FTX in terms of user base after the United Kingdom, the Cayman Islands and the Virgin Islands, all of which are safe havens. The first lesson learned by the chairmen of the boards of directors of Asian investment funds And large investors as a result of the platform’s bankruptcy, it is important to trade digital assets on regulated exchanges or invest in portfolios that trade on regulated exchanges.”
And she adds, “Asian investors will be more inclined in the next stage to invest in stocks in countries such as Vietnam, Taiwan, India, Indonesia, Thailand and Malaysia, especially in technology and software companies, as well as consumer products companies that have profit growth, and achieve an average growth for five consecutive years of 10 percent.” At the very least, while its debt is low or non-existent, and there must be a return on equity, on assets and on invested capital of at least 20 per cent.”
That is why many experts believe that Asian capital will target assets that outperform when economic growth slows, but could also do well if markets pick up.
This is what makes Janet Lyon believe that Chinese convertible bond funds that achieve a fixed return of between 4 and 5 percent and are currently trading at historically low levels and have a unique ability to protect investors’ money when markets fall, have a special attractiveness for Asian capital.
Another area that Asian capitals are expected to target in the next stage is related to the sectors that fall under the category of telecommunications and energy companies (oil, coal and natural gas), as these sectors are associated with high current and future demand.
With this, Anand Chris, an investment expert, believes that the United Kingdom will receive a large part of Asian investments, as a result of the pound sterling reaching its lowest level in several decades.
And he assures Al-Eqtisadiah that investing in real estate, watches and classic cars in the United Kingdom has become better due to the decline in the value of sterling, and when Asian customers think of the United Kingdom, most come to mind real estate, but recently and with the rise in mortgage rates and economic uncertainty, it has become Generating returns from the perspective of return and capital gains is difficult. Nevertheless, real estate investment in the United Kingdom has not lost its attractiveness to Asian capital, which can focus more on investing in shops and offices than investing in homes.
He says, “Also, the jewelry sector – especially after diamonds, emeralds and sapphires have achieved impressive performance in the past few years – is an attraction for Asian investors, and this is of course associated with the possibility of an increase in Asian demand for gold. The bankruptcy of FTX created a reaction among investors by moving away from high-risk investments and hedging.” At the same time, there is inflation, and this is why gold will be a popular choice in the coming period, because it maintains its value, and it is often seen as a safe investment haven, and expensive works of art, especially those that are undervalued, will be attractive to investment.
But does this mean that Asian investors will leave the cryptocurrency world forever? Most experts are unlikely, as their appetite for unregulated and volatile digital assets may be limited, but investment in security tokens is gaining momentum in the Asia-Pacific region.
Experts define security tokens as a digital investment asset that represents ownership and transfers value from the asset to a specific token. In other words, security tokens are the digital form of traditional investments such as stocks or bonds. A company that wants to raise funds for a new project can decide to issue fractional ownership of its company through a digital token instead of issuing shares. It can then offer this token to investors on an exchange that allows trading. Digital security codes.
In turn, he tells the “Economic” that. De Ceraz, an expert in Asian economics, “Security tokens and cryptocurrencies are almost identical, as they are generated by the block chain, and they are both symbols, but the fundamental difference lies in the purpose, intended use, and actual use. in the same way as stocks, bonds, certificates or other investment assets.”
He added, “Asian capital – through its accumulated experience in dealing with cryptocurrencies – will not leave this market, but will transfer its investments to security tokens, because they are more secure than encrypted currencies, despite the fact that security tokens do not meet the criteria for being considered securities before.” Securities and Exchange Commission.

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