Growth, integration and trends in equity markets in Asia

Abstract

The objective of this paper is to examine the growth and development in the Asian financial markets and then focus on equity-market developments in the Asian economies. Asian equity markets have grown exponentially over the last two decades. The trauma of the Asian crisis crystallized transformations in Asia's financial architecture. Equity markets were, in turn, no exceptions. Despite these problems, these markets slowly began expanding again. Attracted by rapid and sustained regional growth in Asia, international institutional investors and fund managers began investing in Asian equities. This inexorably led to an increase in market capitalization. However, growth in the equity markets was far from steady and uniform. This paper has dwelt on the performance of important equity markets in Asia and highlighted the diversity in them.

How to Increase Market Capitalization in Eurasian Markets?

“…An efficient market with a robust financial sector that provides liquidity are assumed to have a crucial importance in economic performance The liberalization and deregulation of the financial system enabled foreign capital to flow to these markets. (Das, 2014)…”

Benchmarking the competitiveness of the ASEAN 5 equity markets

“…Benchmarking the competitiveness of the ASEAN 5 equity markets best of our knowledge, it is also the first attempt to generalize Porter's diamond model to benchmark stock market competitiveness. A number of prior researches have been focussed on comparative study of the stock market integration in the ASEAN region such as Karim and Ning (2013) or Das (2014). However, these research works are quantitative studies focussing on one or a few particular aspects of the stock markets, not the competitiveness aspect.…”