In terms of recovering from crisis, Asia seems to be both better equipped and also have the flexibility needed. According to Henry Chan, head of Asian Equities at Barings, the Tiger can. He believes Asia is today's hot equity opportunity. He believes Asia has the experience to recover from anything right now after they recovered from the 1997 financial crisis which hurt everyone very bad. There are 4 main reasons he points out to why Asian would recover faster this time.
- Henry says Asian banks due to the forced restructuring during 1997, are far more commercially minded, there are far more current account surpluses and reasonable gearing levels
- Asian currencies are slowly being managed away from the US dollar, and becoming more aligned with the China currency
- China is a big factor which will guarantee an annual growth of around 7-11%
- Henry says the work ethic here in Asis puts us in a better position