Both banks and independent securities firms engaging in merchant banking have tended to allocate substantial internal capital to support their private equity investment activity - between 50 and 100% - and to recognize unrealized capital gains only on traded equities or when some triggering event supported the revaluation of non-traded shares and then only subject to a discount.
For Asia as a whole it was 66 per cent in 1950, 56 now, falling to about 49 per cent by 2025 and then rising again to 57 per cent by 2050, with differences between countries as expected between China and other Asian countries. Countries such as India, Indonesia and others will continue to reap the demographic dividend for at least another 25 years.