Asia's Debt Capital Markets: Appraisal and Agenda for Policy Reform

HKIMR Working Paper No. 19/2003

37 Pages Posted: 24 Aug 2007

See all articles by Paul Lejot

Paul Lejot

The University of Hong Kong - Faculty of Law

Douglas W. Arner

The University of Hong Kong - Faculty of Law

Qiao Liu

The University of Hong Kong - School of Economics and Finance; Peking University - Guanghua School of Management

Mylene Chan

affiliation not provided to SSRN

Date Written: October 2003

Abstract

Markets for debt securities exist in a comprehensive way in no Asian economy other than Japan, even though short or medium-term bonds have been issued in almost all and Asian borrowers are established (though not prolific) international issuers. The markets provide no more than a simple borrowing medium for governments, banks and some companies, while investor activity is closely correlated with banking sector credit creation. Above all, the region's unfinished markets provide no guard against crisis or contagion, nor act as a balance to banking systems that are susceptible to distortion and event risk. Insufficient effort has been made to encourage activity by institutional investors.

This paper is concerned with markets for tradable debt securities; and with the value and appropriateness of structured finance techniques to expand general usage of Asia's debt markets. The paper examines the condition of the domestic and offshore debt capital markets for Asia-Pacific risk. It traces common patterns of development among the established and nascent public debt securities markets in the region, and looks at the dynamics that will affect these markets in the medium term. Last, it seeks to identify whether Asian markets can be made to accommodate continuous issuing and trading activity typical of advanced economies, and to consider the associated advantages and considerations.

Suggested Citation

Lejot, Paul and Arner, Douglas W. and Liu, Qiao and Chan, Mylene, Asia's Debt Capital Markets: Appraisal and Agenda for Policy Reform (October 2003). HKIMR Working Paper No. 19/2003. Available at SSRN: https://ssrn.com/abstract=1009115 or http://dx.doi.org/10.2139/ssrn.1009115

Paul Lejot (Contact Author)

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

Douglas W. Arner

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

HOME PAGE: http://hub.hku.hk/rp/rp01237

Qiao Liu

The University of Hong Kong - School of Economics and Finance ( email )

School of Economics and Finance
Pokfulam
Hong Kong
Hong Kong
852-2859-1059 (Phone)
852-2548-1152 (Fax)

Peking University - Guanghua School of Management ( email )

Peking University
Beijing, Beijing 100871
China

Mylene Chan

affiliation not provided to SSRN ( email )

No Address Available

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