Hong Kong's ROE lowest at 7.9%

China and Hong Kong were the only markets where ROE fell in 2009, according to HSBC.

Indonesia, a domestic consumption-led economy, delivered the best ROE (30%) as ASEAN countries delivered better returns than other countries in the region.

HSBC Global Research said, “In China, the fall was marginal, from 14.6% in 2008 to 13.9%, due to lower asset turnover. Hong Kong saw a steeper fall, to 7.9% in 2009 from 10.7% in 2008. The decline in sales (down 11.4%), resulting in lower asset turnover, was the biggest culprit here as well.”

In addition, high exceptional costs of USD2.2bn increased the tax burden and consequently eroded profits.

View the graph here.