Interestingly, the last two “Years of the Pig – 1995 and 2007” – unfolded very differently.

December 1994 saw the birth of the internet, the beginning of the dot.com boom and one of the most pronounced bull markets in history. In contrast, no one needs reminding of the global financial crisis, which started unfolding in the spring of 2007 and resulted in the worst bear market investors had seen in decades.

So it doesn’t look like history is anything to go by in this case. Being in the Year of the Pig could be positive, or not. To me, 2019 will likely be a volatile year, but the good news is – volatility means opportunity.

A look back at 2018

After a relatively strong 2017 characterised by synchronised global growth, 2018 was a rough ride and hard to anticipate.

It started with markets reacting to US-China trade tensions, headlines like tech juggernaut Apple hitting USD1 trillion in market cap (a first for any US corporation), and yet – like most equities – it tumbled a bit. That’s how markets work – they ebb and flow.

Take for instance the S&P Index, which tracks the 500 largest US corporations. It grew 22 per cent in 2017 but lost 4 per cent last year.

Volatile times ahead

With macro and political uncertainties surrounding broader trade protectionism and Brexit lingering, volatility is likely to be a constant companion in 2019. Despite these challenges, fundamental indicators look solid and recession risk is modest in our view. However, we’re unlikely to see high single-digit to double-digit growth again as China, the second largest world economy, is transforming from high growth to quality growth.

China outlook

China is undergoing a transition from investment-led to consumption-led growth. This means increasing domestic demand is expected to continue fuelling China’s economic engine.

The government has also demonstrated the continued opening up of capital markets such as the expansion of onshore equity and bond markets. This sets the stage for foreign investors to increasingly tap into the Chinese economy.

Our economic outlook for China remains positive in 2019. Government policies to stimulate growth look robust, with greater focus on stabilising the economy. An increased emphasis on |more quality, sustainable growth bodes |well for long-term investors.

Bull, bear or balanced?

People born in the Year of the Pig are considered to be realistic. So following a realistic approach, valuations of Chinese assets seem very reasonable now compared to where they were a year ago.

Now if you wish to tap into the China growth opportunity but are cautious of volatility, you could consider a diversified multi-asset approach that combines Chinese equities and bonds in a single portfolio.

This way, you could capture the full opportunity set that China offers while balancing growth and stability.

To me it’s not that much about being bullish or bearish. It’s about accessing China in a way that suits your risk appetite.

If you wish to have a smoother investment ride, then a balanced approach can help you achieve this and, as a result, you could enhance your risk-adjusted return.

Plan, plan and then plan some more

Regardless of where or what you intend to invest in, at the end of the day, the most important thing is to have an investment plan.

Investors who identify the right strategy for their circumstances and take steps to protect their portfolios from short-term bouts of volatility will stand a better chance of coming out as winners in 2019.

As far as Asian investors are concerned, the diversification of investments remains crucial. More than ever, investors stand to gain by broadening their horizons beyond domestic markets or single asset classes. And remember: don’t just focus on the returns, but also |consider the risk that you take to get that return.

I hope the Year of the Pig brings you prosperity and happiness.

Contributed by PUNEET CHADDHA, chief executive officer & head, Southeast Asia, HSBC Global Asset Management

With reference to the news of persons reporting to the police regarding their investment with HashBX, the SEC has received complaints from the investors and found additional information. The SEC is gathering more facts in this matter and coordinating with relevant agencies to consider whether any act is subject to supervision under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) or other laws enforced by the SEC. In the meantime, investors are strongly advised to be careful with any solicitation to invest with the company because HashBX has not obtained an approval to operate a digital asset business from the Ministry of Finance, nor has it ever filed an application for an initial coin offering (ICO) with the SEC, according to the SEC release yesterday.

The interested public should be aware of possible risks involved in digital asset investment and contact a licensed digital asset business operator only in case of deciding to invest in digital assets. It should be noted that so far no ICO issuer has been approved, and no application or a registration statement has been filed with the SEC. In case of tips of suspicious acts, please call SEC Help Centre at 1207 for further investigation in due course.

The pledge came after JBIC governor Tadashi Maeda had discussions with Prime Minister Prayut Chan-o-cha and Deputy Prime Minister Somkid Jatusripitak on progress with the project at Government House yesterday.

Somkid said the JBIC had insisted on following through with its financial backing for the project against the backdrop of Chinese-Japanese cooperation in support of massive investment in countries in the region, including with the showcase Eastern Economic Corridor (EEC).

The high-speed railway – the biggest infrastructure works for the EEC – will connect the Don Mueang and Suvarnbhumi international airports with the U-Tapao facility in Rayong province.

After the talks yesterday, the JBIC will engage in further discussions on the project.

A committee has begun negotiations with a private consortium – the Charoen Pokphand Group and its partners, which won the bid for this project – and that process is due to be finalised on March 19.

The JBIC is said to be ready to extend its support to a smart city project in Chachoengsao province and to Thai small and medium-sized enterprises for improved production capabilities. More discussions with government agencies will be held.

Weerachon Sukhondhapatipak, deputy spokesperson for the Prime Minister’s Office, said that during the discussions, JBIC had told of its progress in pushing through projects under the EEC. Businesses in Japan and China are said to be highly interested in investing in the high-speed railway.

With Thailand acting as chair of Asean this year, Japan is also ready to support Asean development and establish subregional cooperation, such as with the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) and with the Cambodia, Laos, Myanmar and Vietnam (CLMV) subregion.

Prayut said the Thai government also supports the high-speed rail project and that the EEC will become a centre of manufacturing, adding that Japan is the biggest foreign investor in the zone.

“Earlier, Japan has collaborated well in projects, such as for the establishment of education institutes in Thailand and education institutes and research centres are expected to set up branches in Thailand and the EEC,” he said.

To achieve this, city’s public buses and their route connections need to be improved, said Chayatan Phromsorn, deputy director general of the Office of Transport and Traffic Policy and Planning (OTP), under the Ministry of Transport.

“There are currently four Skytrain lines in operation throughout the city, covering a total of 120 kilometres, with seven additional lines under construction, which will cover up to 173 kilometres,” said Chayatan.

He was speaking yesterday at a seminar entitled “Transforming Thailand, Opening the Door to Economic Innovation”, which was organised by Thansettakij newspaper.

The four Skytrain lines have seen varying levels of traffic per day, from 740,000 passengers on the Green Line (Sukhumvit Line) to 50,000 on the Purple Line (Ratchadham Line), Chayatan said.

Among the Skytrain lines under development is the Red Line, which connects Bang Sue to Rangsit and Bang Sue to Taling Chan. The 26-kilometre Bang Sue-Rangsit route is 79 per cent complete, while the 15-kilometre Bang Sue-Taling Chan route has been completed. The Red Line is expected to open in 2020 and is expected to carry 300,000 passengers a day.

The Dark Blue Line, which connects Hua Lamphong to Bang Khae and Bang Sue to Tha Phra, is 95 per cent complete. The Hua Lamphong-Bang Khae route is expected to open this year, while the Bang Sue-Tha Phra route is planned to open in 2020. The Dark Blue Line is predicted to see some 490,000 travellers a day once fully opened, according to Chayatan.

“Now that these projects are in the wings, the next stage for improving Bangkok’s transportation infrastructure is to focus on the various feeders, the means by which the public can travel from their households to the Skytrain stations, and from the stations to their workplace or leisure destinations,” he said, adding that these developments are needed to tackle the capital’s traffic congestion and resulting air pollution.

Chayatan said the quality of Bangkok’s public buses is poor and they are relatively disconnected to other modes of transport. The buses should also function as feeders to connect local areas to the Skytrain stations and get more cars off the roads.

“Acting as feeders, the routes of public buses can be shortened, further reducing traffic and air pollution. From the shorter routes, buses can also have smaller sizes and the prospect of having electric buses throughout the city will become more achievable,” he said.

Manoj Lohatepanont, director of Chulalongkorn University’s Transportation Institute, said: “Bangkok covers around 1,600 square kilometres. When compared to the area that the Skytrain lines will cover, it is clear that expanding Skytrain routes alone is insufficient.

“The role of feeders will become crucial to improving the quality of Bangkok’s public transportation system.”

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Manoj, who was also at the seminar, shared Chayatan’s concerns on the state of the city’s buses, labelling them as dirty, slow and not timely. These failings encouraged car use with ever worsening traffic and air pollution.

He suggested that, as in South Korea, public buses should be colour coded according to their roles. For example, buses that act as feeders to Skytrain stations, buses that run from the outer area of the city into the inner area, and those that run on elevated highways should have differentiated colour coding.

“This is a worsening of a weakening trend that started in mid-2018, said Alexandre de Juniac, IATA’s director general and CEO.

‘Unless protectionist measures and trade tensions diminish there is little prospect of a quick rebound.”