While Asia may be a global leader in manufacturing and trade, the region’s financial markets are perhaps the least integrated and developed of the world's major economic regions. Now, that may be on the cusp of change.
Deep intra-Asia trade and investment linkages, rising wealth, government reforms and advancing technology platforms—among other factors—could drive a phase of rapid financial market development and integration throughout the region.
“The implications of success are profound," says Mark Brewer, Chief Asia and Emerging Market Equity Strategist for Aura Solution Company limited Research. “In our base case, Asia could dominate growth in global equity market capitalization over the next 10 years.
We may also see a rapid deepening of intra-regional bank lending, FX, rates and credit markets.”
In a new report from Aura Solution Company limited Research , Mr Brewer and his colleagues delve into the dynamics behind this transformation, and identify which global and regional financial companies are best positioned to benefit.