In contrast to the U.S., which is a single market, and Europe, which is in the
process of integrating its capital markets, there is little cross-country capital
market integration in Asia. Thus, the Asian capital market is largely a sum
of the parts-a collection of distinct, national markets. The more developed
of these markets have strong links with the global capital market, yet they seek only limited cooperation with one another.
The aggregate picture of Asia combines different dynamics from the individual countries: Japan is a large though declining player in the global capital market while China is emerging as a force. Korea has a developed economy and India has an untold economic potential but neither of them come close to the size of China's financial stock.
After growing more slowly than the global average over the past 10 years (6.0 percent versus 8.4 percent globally per year), Asia now commands 23 percent ($27 trillion) of the global financial stock. Growth rates vary widely within Asia, with Japan at 4.0 percent per year, Korea at 11.2 percent, and China at 14.5 percent.
Compared to the U.S. and Europe, bank deposits constitute a higher share of Asia's total financial stock, accounting for 41 percent of total. Government debt securities and equity securities represent 26 and 22 percent respectively. Private debt securities are the smallest asset class with 11 percent share of total. Launch this chapter (PDF - 305 KB)
Japan: The World's Savers Retire Japan is the only developed nation facing an absolute decline, rather than a slowdown, in financial wealth because of demographic trends. From The Coming Demographic Deficit: How Aging Populations Will Reduce Global Savings. Read more
