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SINGAPORE, October 9, 2025 – The ASEAN+3 Macroeconomic Research Office (AMRO) today released its ASEAN+3 Financial Stability Report (AFSR) 2025 and the ASEAN+3 Regional Economic Outlook (AREO) October Update, highlighting the region’s broad resilience in the face of heightened uncertainties driven by US trade policy shifts and geopolitical tensions.

Growth in the ASEAN+3 region is projected at 4.1 percent in 2025 and 3.8 percent in 2026, an upward revision from July’s forecast, supported by robust first-half performance and stronger-than-expected export momentum. Market pressures have gradually eased since peaking in April following the announcement of the “Liberation Day” tariffs.

“While intra-regional trade and domestic demand have become increasingly important growth drivers across ASEAN+3, the region remains deeply connected to the global financial system and is therefore not insulated from global shocks,” said AMRO Chief Economist Dong He. “Overall, the region’s financial system remains resilient, although pockets of vulnerabilities persist.”

Export-oriented corporate sectors—particularly smaller firms with high exposure to US demand—may face pressures on profit margins amid shifting trade dynamics. Inflation pressures in the US could persist amid higher import tariffs, complicating the Fed’s monetary policy stance and potentially triggering spillovers to other parts of the world. Additionally, growing uncertainty around the US dollar’s safe-haven status could further fragment the global financial landscape.

Despite these challenges, ASEAN+3 economies remain well-positioned to navigate global headwinds. Well-calibrated policy mixes and strong fundamentals—including robust banking systems, deepening financial markets, ample foreign reserves, and available policy space—have provided critical buffers. With inflation largely subdued and expectations well-anchored in most economies, central banks can maintain accommodative monetary policy to support growth.

At the same time, macroprudential tools, along with foreign exchange and capital flow management measures, offer additional safeguards to maintain financial stability and mitigate external spillovers. However, AMRO underscores that support should be carefully targeted to vulnerable sectors and deployed prudently to preserve policy space amid elevated external uncertainty.

Beyond near-term risks, the region is undergoing deeper structural transitions. Most notably, the rapid digitalization of financial services presents opportunities for greater financial inclusion and efficiency, while also introducing new challenges to financial stability.

“Digitalization of the banking sector is reshaping the market structure, offering new pathways for inclusion and efficiency,” said Runchana Pongsaparn, AMRO Group Head for Financial Surveillance. “But it also alters the nature and distribution of financial stability risks. Policymakers must adopt a multi-pronged strategy that promotes innovation while managing risks, calibrated to the maturity of each market segment.”

As ASEAN+3 manages near-term uncertainties, AMRO emphasizes the importance of reinforcing policy frameworks, improving transparency, and deepening domestic markets and buffers to mitigate spillover risks from external shocks.

Dr. He concluded: “With coordinated actions and deeper financial cooperation and integration, ASEAN+3 can turn today’s challenges into tomorrow’s opportunities, and emerge stronger, more connected, and more resilient.”

For more insights, refer to AMRO’s latest flagship publications: the ASEAN+3 Financial Stability Report 2025, and the ASEAN+3 Regional Economic Outlook October Update.

Also available in Chinese | Japanese | Korean

About AMRO

The ASEAN+3 Macroeconomic Research Office (AMRO) is an international organization established to contribute toward securing macroeconomic and financial resilience and stability of the ASEAN+3 region, comprising 10 members of the Association of Southeast Asian Nations (ASEAN) and China; Hong Kong, China; Japan; and Korea. AMRO’s mandate is to conduct macroeconomic surveillance, support regional financial arrangements, and provide technical assistance to the members. In addition, AMRO also serves as a regional knowledge hub and provides support to ASEAN+3 financial cooperation.

ASEAN+3 Remains Resilient Amid Heightened Global Uncertainties

In the October 2025 update of the AREO, AMRO forecasts the ASEAN+3 region to grow at 4.1 percent in 2025 and 3.8 percent in 2026, an upward revision from July’s forecast, supported by robust first-half performance and stronger-than-expected export momentum. Market pressures have gradually eased since peaking in April following the announcement of the “Liberation Day” tariffs.

Tokyo, October 9, 2025 – The space brewing equipment jointly developed by Mitsubishi Heavy Industries, Ltd. (MHI) and DASSAI Inc., a sake company based in Iwakuni City, Yamaguchi Prefecture, and ingredients will be launched by the Japan Aerospace Exploration Agency (JAXA) for the DASSAI MOON Project, a project to brew sake in space. The launch will take place from Tanegashima Island on October 21, 2025 using H3 Rocket No. 7, a new mainstay launch vehicle built in Japan.

The items will be transported to the International Space Station (ISS) using HTV-X, a new Japanese-built unmanned cargo transfer spacecraft that will undergo its first demonstration test with this launch, and arrangements are being made with JAXA for the brewing test to be conducted in the Japanese experiment module Kibo on the ISS by astronaut Kimiya Yui. The Japanese-led mission aims to brew sake in space for the first time in the history of humanity.

■ About the DASSAI MOON Project

In 2024, DASSAI commenced the DASSAI MOON Project, seeking to build a brewery on the surface of the moon and brew its sake there with the aim of improving quality of life in activities on the moon in future. In Phase 1 of the DASSAI MOON Project, planned jointly by DASSAI and MHI, the world’s first test brewing of sake in space will be conducted in an environment simulating the gravity of the moon’s surface in the Japanese experiment module Kibo in the fall of 2025.
Past link: https://dassai.com/us/news/info/005853.html

■ Schedule and mission details for Phase 1 of the DASSAI MOON Project

The ingredients from DASSAI (rice, malt, yeast, and water) and purpose-built space brewing equipment that will be used on the mission will be launched from the Tanegashima Space Center at approximately 10:58am on Tuesday, October 21, 2025 and taken to the ISS. The items will be launched on the new Japanese-made H3 rocket, which commenced operation in 2024, together with the HTV-X, the resupply vehicle being used to transport them to the ISS, which is being taken to space for the first time. Upon arrival at the ISS, the brewing equipment will be set up and water will be placed inside to start multiple parallel fermentation, a fermentation reaction unique to Japanese sake, for the test brew. DASSAI will brew the sake during the mission and MHI has been developing the space brewing equipment. Processes such as the loading of the equipment on the rocket at the launch site, followed by the launch and the operations at the ISS, will be a collaborative effort between JAXA and various Japanese administrative bodies, companies such as MHI, and other organizations, for an all-Japanese technological endeavor.

Testing in orbit will commence around 10 days after the launch, with the sake brewed in a 1/6G environment, equivalent to the gravity of the moon’s surface, over a period of approximately two weeks while various data is monitored from Earth. After the fermentation in space is completed, the raw sake will be frozen and stored in orbit; it is expected to be brought back to earth no sooner than the end of the year. After being collected, the raw sake will be thawed and refined on Earth, half of the collected sake will be sent to the purchaser, while the remaining half will be analyzed to glean information for future Japanese space industry development.

■ “DASSAI MOON Project” Dedicated website: https://dassai.com/moon/en/

The CR-V, which originally stood for “Comfortable Runabout Vehicle,” was developed as an innovative SUV model under the concept of the “Creative Mover^*2” series, which aimed to support people in creating more fun and enjoyable lifestyles, pioneering a new genre of “urban SUV” that offered excellent comfort and runabout capability. In the 30 years since the initial launch in Japan, in 1995, CR-V has gained and maintained popularity all around the world.

While expanding sales into more markets, CR-V continued to advance in line with the needs of the customer in each era. In July 2024, the CR-V e:FCEV was launched^*3 as the first fuel cell vehicle with plug-in charging capability by a Japanese automaker^*4. In August 2025, cumulative global unit sales of CR-V reached 15 million units. Based on total unit sales over the past ten years (2015-2024), the CR-V is the best-selling Honda automobile model, establishing itself as an important model representing the Honda SUV lineup.

In 2022, Honda launched the sixth-generation CR-V model lineup. The CR-V e:HEV, a hybrid variant featuring a comfortable cabin space and dynamic driving with the Honda two-motor hybrid system, has been well received by many customers around the world, mainly in North America and China, and is scheduled to be launched in Japan as well, in the near future. Prior to the Japan launch, the CR-V e:HEV Prototype will be exhibited in the Honda booth at the Japan Mobility Show (Press days: Oct. 29 – 30, Public days: Oct. 31 – Nov. 9, 2025).   

Including CR-V models, Honda will continue to offer a lineup with a wide variety of mobility products and services that will contribute to making life more enjoyable for more customers around the world.

Reinforces HSBC’s strategic priorities and long-term investment in Hong Kong
Preserves Hang Seng’s brand, heritage, and distinct customer proposition

• The Proposal includes an offer of HK$155 for each Scheme Share, representing a 33% premium over the undisturbed 30-days average closing price of HK$116.5 per share.
• HK$106 billion privatisation offer values 100% of Hang Seng at HK$290 billion on an equity value basis.
• The Proposal represents a significant investment into the Hong Kong economy and includes a commitment to retain Hang Seng’s brand, heritage, and distinct customer proposition.
• The proposal is in line with HSBC’s strategy to increase leadership and market share in areas where it has clear competitive advantages and the greatest opportunities to grow and support its clients.
• HSBC aims to grow in Hong Kong by strengthening the banking presence of HSBC Asia Pacific and Hang Seng, focusing on their relative strengths and competitive advantages, while allowing all customers to choose where to bank.

All capitalised terms which are used in this press release but not otherwise defined herein shall have the meanings ascribed to them in the Joint Announcement dated 9 October 2025. This press release should be read in conjunction with the Joint Announcement, a copy of which is available here (opens in new window).

9 October 2025 – HSBC Holdings plc (“HSBC Group” or “HSBC”) today announced that HSBC Group, together with The Hongkong and Shanghai Banking Corporation Limited (“HSBC Asia Pacific”), a wholly owned subsidiary of HSBC, has put forward a conditional proposal to privatise Hang Seng Bank Limited (“Hang Seng”) through a scheme of arrangement (the “Proposal”). If approved, the Proposal would result in HSBC Asia Pacific acquiring all remaining shares of Hang Seng held by the minority shareholders and the withdrawal of listing of the Hang Seng shares from the Hong Kong Stock Exchange.

Providing immediate cash returns to Hang Seng minority shareholders at an attractive and significant premium

The Proposal offers a Scheme Consideration of HK$155 for each Scheme Share, representing a 33% premium over the undisturbed 30-days average closing price of HK$116.5 per share. This represents an attractive and significant premium to Hang Seng’s historical trading prices, and analyst consensus targets, and is more than Hang Seng’s highest share price in 3.5 years.

The valuation of Hang Seng implied by the Scheme Consideration is HK$290 billion, representing a 1.8x 1H25A price-to-book multiple, which is significantly higher than comparable Hong Kong peers. This offer is final and will not be increased further, underscoring HSBC’s confidence in the fairness and attractiveness of the offer.

Through this Proposal, HSBC is providing Hang Seng minority shareholders with an opportunity for immediate cash realisation, enabling them to realise the benefits from HSBC’s investment in Hang Seng without needing to wait for future dividends.

Capturing Growth Opportunities in Hong Kong

The Proposal is aligned with HSBC’s strategic priority to grow its business in Hong Kong while becoming simple and agile. Hong Kong is one of HSBC’s home markets and HSBC benefits from the proud heritage and brand strength of both HSBC Asia-Pacific and Hang Seng.

The Proposal represents a significant investment into Hong Kong, which underlines our confidence in the growth potential for both HSBC Asia-Pacific and Hang Seng. The Proposal will unlock opportunities for further investment and improvements in operational leverage.

Preserving Hang Seng’s Brand and Heritage While Unlocking Growth

HSBC recognizes the proud legacy and near-100-year history of Hang Seng and is committed to retaining Hang Seng’s separate authorization as a licensed bank under the Hong Kong Banking Ordinance with its own governance, brand, distinct customer proposition and a branch network. Hang Seng’s existing customers will continue to enjoy Hang Seng’s products and services while gaining greater access to the full breadth of HSBC’s global network and full product suite. This strategic alignment is expected to drive stronger growth by leveraging Hang Seng’s competitive strengths and HSBC’s network and products.

Proposal to be fully funded by HSBC’s own resources

HSBC Group will fund the Scheme Consideration with its own financial resources. The expected day one capital impact of the Proposal is approximately 125 basis points which would arise following the approval of the relevant resolutions by the requisite majority at each of the Hang Seng Court Meeting and the Hang Seng General Meeting.

HSBC expects to restore its CET1 ratio to its target operating range of 14.0%-14.5% through a combination of organic capital generation and not initiating any further buybacks for three quarters following the date of this announcement. A decision to recommence buybacks will be subject to HSBC’s normal buyback considerations and process on a quarterly basis. The share buyback announced on 31 July will continue in accordance with its terms. HSBC continues to target a dividend payout ratio for 2025 of 50% of earnings per ordinary share excluding material notable items and related impacts.

HSBC expects that this investment in Hang Seng will be accretive to earnings per ordinary share.

Georges Elhedery, Group CEO of HSBC, commented:

“Our offer is an exciting opportunity to grow both Hang Seng and HSBC. We will preserve Hang Seng’s brand, heritage, distinct customer proposition and a branch network, while investing to unlock new strengths in products, services, and technology to deliver more choice and innovation for customers. Our offer also represents a significant investment into Hong Kong’s economy, underscoring our confidence in this market and commitment to its future as a leading global financial centre, and as a super-connector between international markets and mainland China.

“This proposal fully meets our criteria for value-accretive investments: it aligns with our strategy, enhances growth and scale, does not distract us from organic growth, and delivers greater shareholder value than buybacks.

“Together, HSBC and Hang Seng form a well-positioned platform with two iconic banking brands working side by side to deliver lasting value for customers, employees, and shareholders.”

Further information on conditions to the Proposal is provided in Hang Seng 3.5 announcement

A Scheme Document will be dispatched to Hang Seng minority shareholders in due course, providing further information on the Proposal. The Scheme will become effective subject to the satisfaction of conditions, including Hang Seng shareholder approvals, and sanction by the High Court.

Further information is provided in the 3.5 Announcement issued by HSBC Group, HSBC Asia-Pacific and Hang Seng earlier today.

Media enquiries:

Aman Ullah
+852 3941 1120
aspmediarelations@hsbc.com.hk

Neil Fleming
+44 (0)7384792051
neil1.fleming@hsbc.com