More NewsAsian Equities in 2007 Saw Uninterrupted Growth, Survey Reports

Asian Equities in 2007 Saw Uninterrupted Growth, Survey Reports

The rest of the financial world may have been preoccupied with the global credit crisis throughout the summer and fall of 2007, but equity markets throughout Asia were in the middle of an unprecedented boom and projections for the next 12 months are optimistic. The amount of commissions paid by Asian institutions on Asian (excluding Japan and Australia) cash equity trades surged 55% to nearly US$1.9bn in 2007 from US$1.2bn in 2006, according to the results of the Greenwich Associates’ 2007 Asian Equity Investors Study. Over the same period, the average commission rates paid by large institutions on Asian single-stock agency trades declined slightly, with bigger drops reported in rates on electronic and portfolio trades. The growth in Asian equity markets can be attributed in part to the fact that there are simply more institutions operating in the region, particularly hedge funds. As recently as 2004 hedge funds accounted for no more than 5% of total equity commission payments in Asia; in the past 12 months that figure has jumped to nearly 40%, up from 22% in 2006. Such a formidable hedge fund presence not only drives up trading volume and commissions, it is also spurring growth in low-cost execution alternatives. Investors’ primary attraction to Asia is in returns, which have averaged well into the double digits for virtually all Asian equity markets in recent years. Investor sentiments remained bullish as of the third quarter 2007, projecting average returns of 15% to 20% in the region for 2008, ranging from a high of 20%-plus in China to 14% in Singapore.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha