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Cross-Border Portfolio Investment and Financial Integration in Asia and the Pacific Region

dc.contributor.authorSayuri Shirai
dc.contributor.authorEric Alexander Sugandi
dc.date.accessioned2018-06-19T18:34:51Z
dc.date.available2018-06-19T18:34:51Z
dc.date.issued2018-05-15
dc.identifier.urihttp://hdl.handle.net/11540/8329
dc.description.abstractThis paper examines the developments of cross-border portfolio assets and liabilities in the Asia and Pacific region over the periods of 2001–2017. Rapid increases in both portfolio foreign assets and liabilities have taken place particularly after the 2008–2009 global financial crisis. These cross-border portfolio investments have the following characteristics. First, equity has been a dominant source of foreign liabilities notwithstanding efforts to develop bond markets in the region. One exception is Australia, where foreign liabilities have been largely in the form of debt securities. Limited capital inflows to debt securities issued by emerging Asia may be attributable to the early stages of bond market development. Second, in contrast, debt securities have remained dominant as foreign assets held by the region. This mostly reflects Japan’s preference toward debt securities. Other Asia and Pacific economies have invested more heavily in foreign equity. Third, the region’s assets and liabilities linkages have remained overwhelmingly strengthened against the United States and Europe. Nonetheless, the post-crisis period has witnessed greater financial integration within the region. The intra-regional linkages have been deepest between Hong Kong, China and the People’s Republic of China (PRC), where the former has become a major financier of equity issued by the latter. Singapore increasingly plays a role as an equity investor toward the PRC, Japan, ROK, and other ASEAN economies. Albeit from the low level, the intra-ASEAN integration has been noticeable. Fourth, Japan with largest abundant domestic capital has remained predominantly exposed to the United States and Europe. Within the region, debt securities issued by Australia have increasingly attracted Japan’s capital. To conclude, intra-regional financial integration has risen at the center of the PRC with growing linkages with Hong Kong, China and Singapore.
dc.languageEnglish
dc.publisherAsian Development Bank Institute
dc.titleCross-Border Portfolio Investment and Financial Integration in Asia and the Pacific Region
dc.typeWorking Papers
dc.subject.expertAsian Development Bank
dc.subject.expertDevelopment
dc.subject.expertRegional Economic Integration
dc.subject.expertFinancial Sector Policies
dc.subject.expertFinancial Risk Management
dc.subject.expertBond Financing
dc.subject.adbEconomic integration
dc.subject.adbDevelopment Bank
dc.subject.adbCapital Market
dc.subject.adbRegional Plans
dc.subject.adbRegional Development Bank
dc.subject.adbDevelopment finance
dc.subject.adbMunicipal Bonds
dc.subject.naturalDevelopment Banks
dc.subject.naturalLocal government bonds
dc.subject.naturalBonds
dc.subject.naturalCatastrophe bonds
dc.subject.naturalBond funds
dc.subject.naturalBond market
dc.subject.naturalMultilateral development banks
dc.title.seriesADBI Working Paper Series
dc.title.volumeNo. 841
dc.contributor.imprintAsian Development Bank Institute
oar.themeFinance
oar.themeRegional
oar.adminregionAsia and the Pacific Region
oar.countryBangladesh
oar.countryBhutan
oar.countryIndia
oar.countryMaldives
oar.countryNepal
oar.countrySri Lanka
oar.countryBrunei Darussalam
oar.countryCambodia
oar.countryIndonesia
oar.countryLao People's Democratic
oar.countryMalaysia
oar.countryMyanmar
oar.countryPhilippines
oar.countrySingapore
oar.countryThailand
oar.countryViet Nam
oar.countryCook Islands
oar.countryFiji Islands
oar.countryKiribati
oar.countryMarshall Islands
oar.countryFederated States of Micronesia
oar.countryNauru
oar.countryPalau
oar.countryPapua New Guinea
oar.countrySamoa
oar.countrySolomon Islands
oar.countryTimor-Leste
oar.countryTonga
oar.countryTuvalu
oar.countryVanuatu
oar.countryAfghanistan
oar.countryArmenia
oar.countryAzerbaijan
oar.countryGeorgia
oar.countryKazakhstan
oar.countryKyrgyz Republic
oar.countryPakistan
oar.countryTajikistan
oar.countryTurkmenistan
oar.countryUzbekistan
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-007915
oar.authorShirai, Sayuri
oar.authorSugandi, Eric Alexander
oar.importTRUE
oar.googlescholar.linkpresenttrue


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    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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