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An overview of Asian equity markets

Authors

  • Joyce Hsieh,

    1. Tamkang University
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  • Chien-Chung Nieh

    1. Tamkang University
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    • Joyce Hsieh, Assistant Professor of Finance, Tamkang University, and Chien-Chung Nieh, Professor of Finance, Tamkang University. We would like to thank two anonymous referees for their detailed comments on an earlier version of the paper. We are also grateful to Junda Li and Yuliang Guo for providing excellent research assistance.


Abstract

This study overviews the development of 11 Asian equity markets, namely, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. Prior to the onset of the global financial crisis, the Asian stock exchanges were generally bullish, underpinned particularly by China's robust economic performance. Innovations in financial products and services have been growing in importance, as stock exchanges in these countries have been making a concerted effort to introduce new features and best practices, with the objectives of raising market efficiency, enhancing service quality, and generally bringing operations up to par with international standards. But the potential to realize or support market efficiency can only be possible within an adequate legal framework, a sound market infrastructure, and appropriate corporate governance mechanisms. Thus, many challenges are still to be overcome in the region.

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