Resilience amid a shifting trade and investment landscape

Finance managers at major international companies have even more on their plate than usual. As well as the day-to-day responsibilities of ensuring funds are available when and where they are needed, they must navigate a geopolitical environment that has introduced new risks and considerations into the decision-making matrix.

HSBC’s Trade Pulse Survey in May 2025 found that changing tariffs and shifting demand is encouraging executives to rethink their supply chain strategy. A majority of respondents (51%) cited rising costs due to tariffs, duties, or other trade-related factors, making this the top supply chain concern.¹

Amid the uncertainty, leading international businesses are showing no sign of holding back major investments or capital raising exercises. Total corporate bond issuance across East Asia surged 25.2% in the second quarter of 2025, according to the Asian Development Bank², while equity offerings in Asia, excluding Japan, rose 35% in the first half.³

Investing in growth in a volatile world carries elevated risks for any business. Bold steps, however, can also be transformational: many of today’s most successful companies were founded during times of stress, from Airbnb at the start of the 2008 financial crisis to Disney in 1923. Business leaders are also investing today to secure their long-term future: in PwC’s latest CEO Survey, 40% of CEOs said their companies wouldn’t survive the next decade if they did not change.⁴

Despite today’s uncertain climate, many global companies are continuing to allocate capital to strategic priorities. In Hong Kong, the quest for equity capital has driven a surge in new listings, with IPO volumes up 695% year-on-year in the first half of 2025.⁵ HSBC has supported a number of clients on their equity offerings, including insurance group FWD on its USD471 million IPO.⁶

Mergers and acquisitions (M&A) are also on the rise globally, increasing 15% year-over-year in the first half of 2025, according to PwC.⁷

In Asia, the uptick in M&A activity also reflects a continuing shift in capital flows and the emergence of new investment corridors, for example between Asia and the Middle East. Earlier this year, HSBC advised Olam Group on the sale of a stake in Olam Agri to Saudi Agricultural and Livestock Investment Company.⁸

“With traditional trade and capital flows in flux, many international businesses are looking to connect with new markets and unlock emerging sources of capital,” said Jeyarajah. “HSBC’s established global presence gives us a unique ability to support our clients as they explore new growth opportunities.”

Leading companies pursue a range of financing tactics to mitigate risks as they grow. In today’s climate, the following strategies may prove especially useful:

Local currency funding

As businesses reposition their supply chains to reduce the impact of trade tariffs or mitigate geopolitical risks, the ability to fund their operations in local currency can reduce their exposure to volatile currency markets. This may be especially important for global businesses with a cost base in Asia’s manufacturing hubs: the Taiwanese dollar, for example, surged by a record against the US dollar in May, gaining as much as 8% over two days.⁹

The uptick in local currency bond issuance in 2025 underlines the appeal of funding in domestic currencies. Sales of panda bonds, onshore renminbi bonds issued by foreign borrowers, are running at a record pace in 2025, with businesses including Mercedes-Benz among recent issuers.¹⁰

Diversified funding sources

Access to long-term capital is key for any growing business, and multinational corporations are deploying a range of options when it comes to raising funds. Globally, international bond issuance hit a multi-year high in the first half of 2025, up 6% compared to a year earlier.¹¹ While syndicated loans and bank lending remain essential sources of financing, leading businesses are also exploring private credit funds as an alternative source of capital. Meta, for example, is reportedly working with Pimco on a private financing for its data centre operations that could raise as much as USD29 billion.¹²

The growth of private credit funds is also creating opportunities for businesses to optimise their capital structures through the issue of mezzanine debt or asset-backed loans – both of which have become popular strategies for institutional investors.¹³

Hedging strategies

Faced with elevated volatility in currency markets and uncertainty over the direction of interest rates, many international businesses are turning to derivatives to protect against losses. This is especially relevant for businesses that fund their operations and report their performance in US dollars, amid an uncertain outlook for the greenback. HSBC Global Investment Research in July noted that the commentary around US trade tariffs and policy changes weighed on the US dollar, but warned fast-changing narratives could be misleading.¹⁴

With the right approach, companies can continue their strategic investments around the world without taking on unmitigated risks. With tariffs and trade disruption adding to the appeal of global diversification, a broad footprint can be a recipe for both stability and growth.