In these countries, much financing still moves through the banking channel. Strengthening of capital markets is therefore a common goal. The initiatives related to the bond market, which I referred to a few moments ago, should be seen in this light. Exchanges can play a role here as well.
Providing a full range of financing options to entrepreneurs is a key element in the mobilization of the region’s rich reservoir of savings to finance regional investments. Another contribution that can be made by exchanges is enhanced transparency. In some cases, investors are said to be discouraged from investing in the emerging Asian market, partly because transparency is so low.