Asian Equity Markets: Growth, Opportunities, and Challenges

Purfield, Catriona; Oura, Hiroko; Kramer, Charles; Jobst, Andreas (Andy)

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Asian Equity Markets: Growth, Opportunities, and Challenges

IMF Working Paper No. 06/266

41 Pages Posted: 12 Jan 2007

See all articles by Catriona Purfield

Charles Kramer

International Monetary Fund (IMF) - Capital Markets and Financial Studies Research Department

Andreas (Andy) Jobst

Central Bank of the UAE

Date Written: December 2006

Abstract

Asian equity markets have grown significantly in size since the early 1990s, driven by strong international investor inflows, growing regional financial integration, capital account liberalization, and structural improvements to markets. The development of equity markets provides a more diversified set of channels for financial intermediation to support growth, thus bolstering medium-term financial stability. At the same time, as highlighted by the May - June 2006 market corrections, the increasing role of stock markets potentially changes the nature of macroeconomic and financial stability risks, as well as the policy requirements for dealing with these risks.

Keywords: Stock markets, Asia, Capital markets, Financial stability, International capital markets

JEL Classification: G11, G12, G15, G23

Suggested Citation: Suggested Citation

Purfield, Catriona and Oura, Hiroko and Kramer, Charles F. and Jobst, Andreas A., Asian Equity Markets: Growth, Opportunities, and Challenges (December 2006). IMF Working Paper No. 06/266, Available at SSRN: https://ssrn.com/abstract=956729