Asian Capital Market Development and Integration: Challenges and Opportunities

Publication | January 2014

This book examines the path that capital market development has taken within the region since the global crisis of 2008.

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 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 is a copublishing effort between ADB and Korea Capital Market Institute (KCMI), with further collaboration by the Peterson Institute for International Economics.


  • Foreword
  • Executive Summary
  • Abbreviations and Acronyms
  • Capital Flows and Macroeconomic Considerations
    • Currency and Maturity Mismatches in Asia - Joseph E. Gagnon
    • Capital Markets as Financial Safety Nets - Iwan J. Azis
    • Managing Foreign Fund Flows into Asia's Domestic Bond Markets - Sabyasachi Mitra and Thiam Hee Ng
    • Capital Flow Management and Macroprudential Policies in Asia - Olivier Jeanne
  • Capital Market Linkages, Contagion, and Institutional Representation
    • Financial Globalization and Long-Run Growth: Is Asia Different? - Olivier Jeanne, Marcus Noland, Arvind Subramanian, and John Williamson
    • 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
    • Asia's Changing Position in Global Financial Reform - Nicolas Véron
    • The Evolving Global Regulatory Framework and Its Impact on Asia - Michael Liu and Fariborz Moshirian
  • Asian Capital Market Development and Risk Analysis
    • Asian Capital Market Integration: Theory and Evidence - Cyn-Young Park
    • Determinants of Bond Market Development in Asia - In Seok Baek and Pil-Kyu Kim
    • Currency Internationalization and Bond Market Development in Asian Economies - Suk Hyun and Shigehito Inukai
    • Decomposition of Volatility in Asian Equity Markets - Ki Hoon Hong, Jangkoo Kang, and Doowon Lee
  • Toward Fulfillment of End-User Needs
    • Asia's Demand for and Supply of Funds in the Context of Regional Capital Market Development - Ramesh Subramaniam and Mitzirose Legal
    • ASEAN+3 Capital Market Integration: Cost of Capital and Investment - Ki Beom Binh and Yong-Rin Park
  • Index

Additional Details

  • Finance sector development
  • Financial markets and institutions
  • Regional cooperation and integration
  • 534
  • 6 x 9
  • BKK135465-2
  • 978-01-9809-945-1 (print)

Subscribe to our monthly digest of latest ADB publications.

Follow ADB Publications on social media.