16 June 2024 – The Fund Society

Renminbi likely to draw fire as trade tensions mount

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Ranked: The Countries Receiving the Most Remittances From Abroad

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June 16, 2024 Graphics/Design:

See this visualization first on the Voronoi app.

The Countries Receiving the Most Remittances From Abroad

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

We chart the top countries by money received from abroad, in current U.S. dollars, based on 2000-2023 data from Knomad.

Specifically, these transfer totals shown represent personal remittances, or money sent between residents and non-residents, including personal transfers and compensation for work done abroad. It does not include, and is separate from, foreign investment.

Top 10 Countries by Personal Remittances Received (2000-2023)

The Indian diaspora—measuring nearly 18 million people—collectively sent more than $125 billion back to the country in 2023. In fact, India became the first country to ever receive more than $100 billion in personal remittances in 2022.

Top Countries Receiving
Money From Abroad2000 Top Countries Receiving
Money From Abroad2023e 🇮🇳 India$13B🇮🇳 India$125B 🇫🇷 France$9B🇲🇽 Mexico$67B 🇲🇽 Mexico$8B🇨🇳 China$50B 🇵🇭 Philippines$7B🇵🇭 Philippines$40B 🇬🇧 UK$5B🇫🇷 France$34B 🇹🇷 Türkiye$5B🇵🇰 Pakistan$24B 🇰🇷 South Korea$5B🇪🇬 Egypt$24B 🇺🇸 U.S.$4B🇧🇩 Bangladesh$23B 🇵🇹 Portugal$4B🇳🇬 Nigeria$21B 🇩🇪 Germany$4B🇬🇹 Guatemala$20B
Note: 2023 figures are estimates. All numbers rounded.

For context, India’s remittances received adds to more than the next two countries, Mexico ($67 billion) and China ($50 billion) combined.

Meanwhile, over the last two decades, the top 10 has seen a major shift. Countries from Europe have fallen out, replaced by Asian and African countries with big diaspora communities.

And the countries they’ve replaced—France, UK, Germany—are now some of the top destinations for immigration, from where remittances are usually sent.

The UN states that at least one in nine people globally are supported by funds received from abroad, and half of the amount ends up in rural areas, where some of the world’s poorest people live. This also makes remittances three times more important than international aid.

On a global scale, personal inbound remittances have risen seven times between 2000 and 2023.

The growing case to embed climate risk in finance teaching

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Chief financial officers, chief investment officers and their teams are in a prime position to help embed sustainability in their organisations — from strategy and operations to financing and reporting. Yet the change required for many finance teams is substantial.

A recent survey of senior finance professionals by the charity Accounting for Sustainability suggests that the profession is responding: 88 per cent agree that it is “very important” or “essential” to transform financial decision making to address the opportunities and risks posed by environmental and social issues.

Most organisations have developed at least some tools to integrate sustainability, alongside traditional financial data, into decision making.

But only 9 per cent reported they were able to do so in a fully comprehensive way. Fifteen per cent felt they had the tools and techniques in place that they needed, though 46 per cent said these were under development.

Those of us who teach and conduct research in finance and accounting have a role to play to meet this demand.

We took part in a recent discussion between finance and accounting —professors and the Financial Times about best practices, successful innovations, and important concepts and themes.

It is now relatively uncontroversial to argue that climate change and nature loss bring direct risks to the profitability and cash flows of companies.

Physical risks arise from direct manifestations of climate change and include risks to firm facilities, operations, and supply chains.

Transition risks and opportunities arise for business as regulatory incentives and consumer preferences push towards, for example, a lower emissions economy.

Mobilising private capital towards mitigation of, and adaptation to, environmental change is vital. The rules of the road, as defined in finance textbooks, must be refined to help understand and manage these risks.

But there are divergent views on how to respond. Some participants in the discussion felt a responsibility as professors to inspire a fundamental overhaul of finance and accounting pedagogy, and thought the fiduciary duty of financial officers must be redefined to view climate and social action through the lens of “citizen investors”, who consider many non-financial objectives.

For them, a core course in finance would seek to question the very purpose of finance. Ideally, it would pursue what appropriate actions financial officers could take to fulfil their more broadly defined duties, what powers they should exercise, what purpose they serve, and what evidence

Campaigning parties should tell the truth about debt servicing

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Japan did it first. Chinese stocks with some of the biggest global upside

If the international expansion of Japanese companies is any guide, Chinese companies still have significant potential left in the global market. That’s according to HSBC analysts. They found that for mainland China-listed companies, known as A shares, just 11.7% of their total revenue last year came from outside the country. The portion was an even lower 10.3% when looking just at the largest companies, tracked by the CSI 300 index. In contrast, 35.3% of revenue for companies in Japan’s Nikkei 225 came from overseas last year, Steven Sun, head of research at HSBC Qianhai Securities, and a team said in a report this month. Since the pandemic, Chinese companies have increasingly looked to expand abroad due to slowing growth at home. Electric cars and consumer products have stood out to investment analysts for their international potential. “We believe structural growth opportunities from consumer companies’ global expansion remain underappreciated by investors, especially in EM markets,” UBS Asia Pacific equity analyst Christine Peng and a team said in a report on June 12 about the China consumer sector. Companies to watch One of their buy-rated picks is Gongniu, a Shanghai-listed company that sells electrical products such as wall sockets, switches and lighting. The company said in its annual report that last year that it set up subsidiaries in Germany and Indonesia and recruited distributors in the Middle East and South America. Gongniu’s overseas operating revenue has only accounted for 2% or less of what it makes domestically. The company did not break out overseas revenue for the first quarter, but said overall revenue grew by 14% from a year ago to 3.8 billion yuan. When compared to Japanese companies, the contribution of overseas revenue to the total for Chinese businesses is low across industries. “Although some leading companies like BYD and CATL have made concrete steps to gain global market share, with the overseas revenue contribution reaching c30%, we believe this is likely to signal a good start rather than a ceiling,” the HSBC analysts said, noting the companies’ Japanese counterparts have grown overseas revenue to more than 70% of their business. The gap remains wide when looking at other sectors, such as electrical equipment (20.4% vs 53.8%), machinery (21.6% vs 53.5%) and pharmaceuticals (9.9% vs 34.6%), HSBC’s analysis found. Here are the firm’s China “going global” stock picks, all

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Investors may be looking at commercial real estate risk all wrong and missing these opportunities

The threat from a looming wave of maturing commercial real estate loans has been well telegraphed to investors, but it’s possible the metrics they are using to protect themselves from risk are flawed. Many investors have been avoiding bank stocks with high concentrations of commercial real estate (CRE) exposure. However, that metric may miss banks that have riskier loans on their books despite having lower concentrations of CRE. For that reason, investors may want to take a more granular look at the types of loans a bank holds. In doing so, they may find some larger banks are on shakier ground than their CRE concentration suggests. Wall of maturity About 30% of outstanding CRE debt is due to mature between 2024 and 2026, according to data provider Trepp. When this debt matures and the property owners look to refinance, borrowers will face much higher debt payments due to rising interest rates, and economics could become untenable, especially given that the value of many office properties has declined. Owners may decide it’s easier to just to hand back the keys and walk away. The heightened concern about default risk is clearly weighing on bank stocks, which are already fighting the headwinds of higher interest rates. Indeed, the gap between both the KBW Bank Index (up about 4% year to date) and the SPDR S & P Regional Banking ETF (KRE) (down 12% year to date) versus the S & P 500 Index (up nearly 14%) is even wider now than it was during the regional bank crisis in the spring of 2023, UBS analyst Erika Najarian wrote in a research note Thursday. For the moment, the troubled loans are contained. According to CoStar , about 1.23% of all outstanding CRE loans are considered at risk, but the trend may be heading in the wrong direction. At the end of the first quarter, the Federal Deposit Insurance Corp. said the amount of real estate loans past due or in nonaccrual status was $35 billion, up 9% from the fourth quarter of 2023 and 59% higher than the same period a year ago, marking the highest level in 11 years. Investors have been punishing regional bank stocks, especially when the bank’s commercial real estate exposure tops more than 300% of its total equity . That is a benchmark the Federal Reserve

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Mapped: The Population of China and India in Perspective

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June 16, 2024 Graphics/Design:

See this visualization first on the Voronoi app.

The Population of China and India in Perspective

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

China and India, the world’s two most populous countries, each boast populations exceeding 1.4 billion people.

To put this into perspective, we visualized populations of China and India beside other leading countries and regions. All figures are for 2023, and were accessed via Worldometer.

Data and Key Takeaways

All of the data we used to create this graphic is listed in the table below.

Country / RegionPopulation (2023) 🌍 Africa1,460,481,772 🇮🇳 India1,428,627,663 🇨🇳 China1,425,671,352 🌎 Latin America & the Caribbean664,997,121 🇪🇺🇬🇧 EU plus UK516,659,018 🇺🇸 U.S.339,996,563 🇮🇩 Indonesia277,534,122

From these figures, we can see that the entire population of Africa (currently the fastest growing region in the world) barely surpasses that of China and India.

The populations of China and India are each more than double the size of Latin America and the Caribbean, and nearly triple that of the European Union (including the UK).

Fast Facts on Global Population

Here are some important figures to know regarding the world’s population:

China accounts for 17.7% of the world’s population, while India represents a slightly larger 17.8% share. Africa is the fastest growing region in the world, with annual growth of about 2.4%. Europe is the only region in the world that is shrinking, at about -0.17% annually. Learn More About Demographics from Visual Capitalist

If you enjoy graphics like these, be sure to check out Population Projections: The World’s 6 Largest Countries in 2075.

It reveals a startling contrast between the trajectories of China and India, with the latter peaking at 1.7 billion in the mid-2060s.

africa China countries Demographics india Indonesia map Maps population US

US executive pay rises at fastest rate in 14 years

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Janus Henderson’s Ali Dibadj: ‘You’ve just got to roll with the punches’

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Pakistan rice exports hit record following Indian sales ban

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