Which SGX Asean plays could gain from China's Belt & Road?

SINGAPORE (Sept 27): China’s One Belt and One Road (OBOR) promises to bring economic benefits to Asean as capital flows from the world’s second largest economy into the region via infrastructure projects ranging from ports and roads to railways and power plants.

According Maybank KimEng, Asean was the greatest beneficiary of Chinese greenfield investments from 2003-2015. Specifically, China’s non-financial direct investment into Asean rose to US$14.5 billion ($19.7 billion) in 2015 against US$12.5 billion in 2014.

A recent report by RHB Securities also stated that Asean will likely become the bridgehead for OBOR due to the region’s geographical proximity and relatively low risk profile.

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