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Asian Capital Market Development and Integration: Challenges and Opportunities

by Asian Development Bank (Adb) , Korea Capital Market Institute(kcmi)
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₹10,346.00
Original price ₹10,346.00
Original price ₹10,346.00
₹10,346.00
Current price ₹10,346.00

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Book cover type: Hardcover
  • ISBN13: 9780198099451
  • Binding: Hardcover
  • Subject: N/A
  • Publisher: Oxford University Press
  • Publisher Imprint: Oxford University Press
  • Publication Date:
  • Pages: 530
  • Original Price: USD 99.0
  • Language: English
  • Edition: N/A
  • Item Weight: 831 grams
  • BISAC Subject(s): Finance / General

The fiscal crisis in Europe continues to cast a shadow on the global economic outlook, and the securities issued by the United States and European nations are losing their status as traditional safe assets and reserve value. As a result, investors and governments are looking to diversify their investment portfolio with emerging markets, particularly Asian bonds. Such renewed interest has led to excessive capital inflows, making the region increasingly vulnerable to external shocks. However, on the other hand, it leads to abundant liquidity in the capital markets, which reduces financing costs and expands investment opportunities.

This book analyses this dilemma and proposes that development of local bond markets and achieving greater market depth and interconnectedness is the best bet to prevent the reoccurrence of a currency crisis like 1997. It thus, assesses the progress achieved thus far in capital market integration in Asia, and compares it with its global peers. The study also assesses the degree to which volatility in equity and bond market returns, driven by financial turmoil originating at both the regional and global levels, spills over into emerging Asia domestic equity and bond markets. The results of this analysis indicate that such spill-over significantly impacts both domestic equity and bond markets in the region. This finding suggests that on-going regional capital market integration initiatives should take into account the risk of contagion that regional financial integration presents, and introduce measures for mitigating such risk as a means of ensuring financial stability in the region.

Asian Development Bank (ADB), Korea Capital Market Institute(KCMI)

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