Magazine article American Banker

Asia Awaits a Couple of Shakes

Magazine article American Banker

Asia Awaits a Couple of Shakes

Article excerpt

Asia Awaits a Couple of Shakes

ASIA IS AWAITING developments in London with anticipation. But when one looks at the most important financial markets--Tokyo, Hong Kong, and Singapore--it is difficult to decide which Big Bang will have the biggest effect.

While London liberalizes its domestic equity and government securities market, the financial community is hoping that Tokyo will decide to do the same. Slowly succumbing to international pressures, Japanese authorities have been unfolding their Big Bang in steps. Selling foreign brokers seats on the Tokyo Stock Exchange, liberalizing the Euroyen market, and admitting foreign banks into the expanding trust business are just a few of the explosions that have taken place over the last year.

In the minds of most bankers, however, the complete deregulation of interest rates is the Big Bang everyone awaits. Hong Kong is waiting a shakeup much closer to home. With the Chinese scheduled to arrive in 1997, the financial community is wondering which way the chips will fall. Though the Chinese have pledged to keep Hong Kong as is, historians warn that there is often a Great Leap Backward after a Great Leap Forward.

As for Singapore, this fledgling financial market has yet to recover from a Big Bang already exploded. While positioning itself to take advantage of Hong Kong's dilemma, Singapore is still feeling the embarrassing repercussions of the Pan Electric stock market scandal.

Though all of the major Asian players are expected to benefit indirectly from the liberalization of London's market, it is the financial institutions of Japan that are best positioned to gain from the situation. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.