Under this scheme, the time required to issue in multiple markets will be the same as that for issuing in one market, reaping both cost and time savings for issuers. The cross border RMB channels with SIP and TEC, which I mentioned earlier, would also allow corporates in these locations to issue RMB bonds in Singapore. These initiatives in the debt and equity markets will allow companies to diversify their sources of funding abroad, more easily tap investors in overseas markets as well as broaden the array of debt investment choices in local markets. d.  Fund Management. There are two similar initiatives for mutual recognition of collective investment schemes in Asia. The first, among Singapore, Malaysia and Thailand, led by the ASEAN securities regulators. The second, involving Singapore, Korea, Australia and New Zealand, called the Asian Region Funds Passport under the auspices of APEC. These initiatives will widen the opportunities for investors and fund managers abroad. 13. In addition, we see evidence of partnerships among market participants, especially in the area of OTC derivatives which has been typically a fragmented market: a. Collateral Management. The global reforms for OTC derivatives have drastically increased the demand for collateral. To date, Asian collateral is not widely traded or commonly accepted outside of their home market. This has created inefficiencies as financial institutions can neither obtain specific, nor deploy excess, Asian collateral outside of their home market. Two developments have helped.
Asia remains the fastest growing and most dynamic region in the world today and is likely to remain so in the foreseeable future. According to projections by The Conference Board, China’s growth in the next ten years will average close to 5% per annum, with India at about 4.2% and the rest of Asia at 4.5%. 1 These projected growth rates for Asia are well above the 3.8% for emerging economies as a whole, and the 1.7% expected for the advanced economies over the same period. Looking further into the future, the Asian Development Bank has projected that the sum of the GDP of China, India and ASEAN in purchasing power parity terms could quadruple by 2030 and even exceed that of the US and Europe combined. 2 5. Asia’s already large middle class, will continue to register strong growth. In ASEAN for instance, the middle class is projected to rise to two-thirds of the population by 2030, from less than a quarter in 2010. 3 The rapid expansion of the middle class will, from the demand side, spur the growth and development of a wide range of goods and services. 6. Alongside Asia’s sustained economic development in the medium-term, financial services will be an important facilitator of growth as well as a growth engine in its own right. 1  “New measures for global growth projections for The Conference Board Global Economic Outlook 2014,” The Conference Board, November 2013. 2  “ASEAN, PRC and India: The Great Transformation,” ADB Institute, Asian Development Bank, 2014.