OCBC's Hong Yongxiang: The frontier of banking lies in Asia, in technology, and in green energy.

What are the views of foreign banks on the global macroeconomy and the performance of major asset classes? OCBC Bank recently provided its own perspective.

In April, OCBC China held an industry viewpoint communication event in Shanghai titled "Strive Ahead, Expanding Growth Boundaries." Hong Yongxiang, CEO of OCBC China, shared the latest insights.

Hong Yongxiang stated that OCBC Group has recently officially released a new development strategy called "Next Frontier," which clarifies the key areas of growth and growth drivers for the next phase.

It is understood that the "Next Frontier" strategy consists of four core transformation steps:

Asia Transformation: Grasp opportunities arising from growing trade, investment, and financial flows in the Asia region;

Technology Transformation: Through artificial intelligence, digitalization, and data (i.e., ADD), drive customer-centric strategies and actively expand business in the technology sector;

Business Transformation: Deepen core market business to achieve long-term growth;

Net Zero Transformation: Continuously support green transformation.

Hong Yongxiang noted that the above strategy reflects the bank's deep insight into long-term trends, as well as its determination to reinvent its own growth path and capabilities portfolio.

He further stated that for OCBC Bank, China is not only an important market, but also a core component of the group's regional strategy. The bank will continue to leverage the advantages of the group's network throughout Asia and its professional capabilities, and provide efficient, professional, and seamless financial solutions to customers through a "group integrated" collaborative model, accompanying them on their regional and international development journey for the long term.

During the meeting, Xie Dongming, Head of Macroeconomic Research at OCBC Bank, delivered a keynote speech titled "Global Macro: Hot Topics for 2026." Xie Dongming stated in the speech: Due to the situation in the Middle East, global macro uncertainty in 2026 is clearly rising, but he still believes that under the baseline scenario, the global economy as a whole remains resilient.

Unless the Iran conflict lasts significantly longer than expected, in which case they would have to revise down their judgment of global economic growth.

Looking ahead to 2026, Xie Dongming said that OCBC's macro framework will focus more on "risk management." Currently there are four major risks worth close attention: First, the risk of global stagflation is rising significantly. Second, the disruptive impact of AI on business models and the employment structure is becoming a new source of uncertainty. Third, private credit risk deserves high attention. Fourth, liquidity risk is affecting asset repricing.

He also reminded that these risks may not exist in isolation. There are signs of "mutual transmission and reinforcement." Therefore, 2026 is likely to be a typical "year of risk management." Investors need to guard not only against individual risk events, but also against the possible systemic shocks caused by the accumulation of multiple risks.

OCBC China Deputy President and General Manager of Global Finance Liu Yang further analyzed recent changes in global major assets and their macro logic in the keynote speech. Liu Yang stated: Against the complex backdrop of intensified global geopolitical conflict and volatile energy prices, since April, fluctuations in global major assets have significantly increased, and asset allocation requires greater attention to liquidity management and risk prevention.

He believes that in this round of shocks, traditional safe haven assets performed in a differentiated manner, with only the RMB and USD, backed by liquidity advantages and strong economic fundamentals, becoming relatively stable "safe harbors." Of these, the US economy still shows resilience in the short term, but repeated inflation and a high interest rate environment may delay easing, and the trend of interest rate cuts in the medium and long term is difficult to reverse. Meanwhile, the RMB exchange rate, adhering to its own policy, demonstrates strong resilience supported by export surpluses and policy tools.

He also believes that regarding gold, although short-term volatility is increased due to real interest rates and liquidity impacts, persistent central bank gold buying worldwide will provide some support for gold prices in the medium and long term.

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