Asian Capital Market Development and Integration

Description

The ever-growing deepening, maturity, sophistication, and integration of Asia’s financial systems bring an increased risk of contagion during periods of financial distress. As a result, investment in financial safety nets for cushioning against the negative impacts of financial contagion is necessary. Further, there remains to be addressed the issue of the impact on Asia of the financial reform measures being initiated at the global level in response to the crisis of 2008. This book examines the path that capital market development has taken within the region since the global crisis of 2008. It lays out an analytical framework for addressing capital market integration at the regional level. It also projects the likely impacts of regional capital market integration by operationalizing this framework through the application of updated data. This book is a copublishing effort between the Asian Development Bank (ADB) and Korea Capital Market Institute (KCMI), with further collaboration by the Peterson Institute for International Economics.  

Table of contents

Tables and Figures
About this Book
Contributors
Acknowledgments
Foreword
Executive Summary
Abbreviations and Acronyms

Part I Capital Flows and Macroeconomic Considerations
1 Currency and Maturity Mismatches in Asia
Joseph E. Gagnon

2 The Capital Market in the Context of Financial Safety Nets
Iwan J. Azis

3 Managing Foreign Fund Flows into Asia's Domestic Bond Markets
Sabyasachi Mitra and Thiam Hee Ng

4 Capital Flow Management and Macroprudential Policies in Asia
Olivier Jeanne

Part II Capital Market Linkages, Contagion, and Institutional Representation
5 Financial Globalization and Long-Run Growth: Is Asia Different?
Olivier Jeanne, Marcus Noland, Arvind Subramanian, and John Williamson

6 Deviation from Covered Interest Parity in Asian Foreign-Exchange Swap Markets during the Financial Crisis of 2007-2009
Inhyung Lee, Seungho Lee, and Ilhyock Shim

7 Asia's Changing Position in Global Financial Reform
Nicolas Véron

8 The Evolving Global Regulatory Framework and Its Impact on Asia
Michael Liu and Fariborz Moshirian

Part III Asian Capital Market Development and Risk Analysis
9 Asian Capital Market Integration: Theory and Evidence
Cyn-Young Park

10 Determinants of Bond Market Development in Asia
In Seok Baek and Pil-Kyu Kim

11 Currency Internationalization and Bond Market Development in Asian Economies
Suk Hyun and Shigehito Inukai

12 Decomposition of Volatility in Asian Equity Markets
Ki Hoon Hong, Jangkoo Kang, and Doowon Lee

Part IV Toward Fulfillment of End-User Needs
13 Asia's Demand for and Supply of Funds in the Context of Regional Capital Market Development
Ramesh Subramaniam and Mitzirose Legal

14 ASEAN+3 Capital Market Integration: Cost of Capital and Investment
Ki Beom Binh and Yong-Rin Park

Index