ASEAN Exchanges
ASEAN Exchanges is a collaboration of the 7 exchanges from Malaysia, Vietnam (2 exchanges), Indonesia, Philippines, Thailand and Singapore to promote the growth of the ASEAN capital market by bringing more ASEAN investment opportunities to more investors.[1]
Market integration
On 18 September 2012, the ASEAN Exchanges collaboration launched the ASEAN Trading Link, a gateway for securities brokers to offer investors easier access to connected exchanges.[2] Bursa Malaysia and Singapore Exchange were the first two exchanges to join the link on the launch day, while The Stock Exchange of Thailand joined on 15 October 2012, creating a virtual market of over 2,200 listed companies and US$1.4trillion combined market capitalisation. [3]The purpose of the trading link is to connect the securities markets of the ASEAN exchanges, making it essentially just as easy for investors to trade in other ASEAN capital markets as it is to trade in their own domestic market.
Also on 15 October 2012, ASEAN Exchanges launched a new website, featuring aggregated ASEAN market data and analytics.
On April 8, 2011 ASEAN member countries have launched a new joint website promoting the region's blue chip equities to global investors as a commitment to integrating their stock exchanges by 2015.[4]
Partners
- Bursa Malaysia, formerly Kuala Lumpur Stock Exchange (KLSE), Malaysia
- Hanoi STC, Hanoi Stock Exchange, Vietnam
- HOSE, Ho Chi Minh Stock Exchange, Vietnam
- IDX, Indonesia Stock Exchange, previously Jakarta Stock Exchange, Indonesia
- PSE, Philippine Stock Index, Philippines
- SET, Stock Exchange of Thailand, Thailand
- SGX, Singapore Exchange, Singapore
Combined market capitalization
At end of March 2011, a combined market capitalization of ASEAN Exchange is about US$1.8 trillion with participation of more than 3,000 companies.[5]
ASEAN Stars
For easiness of ASEAN investment opportunities, ASEAN Exchange has launched ASEAN Stars comprise of 30 most exciting stocks from each exchange ranked in terms of market capitalization and liquidity.[6]
Challenge
According to MSCI Barra Executive Director, the challenge is to make a seamless integrated efficient platform for investors. Trade settlement is very, very important issue that how to settle trade among ASEAN Exchanges countries. Although the integration will make the market will be conspicuous with MSCI Emerging Markets Index totally will be 7.4 percent consist of Malaysia with 2.9 percent, Indonesia 2.3 percent, Thailand 1.7 percent and Philippines 0.5 percent.[7]
Progress
By end of 2011, Stock Exchange of Malaysia, Philippines, Singapore and Thailand will set up a trading link among their markets for cross border dealing. Indonesia and Vietnam will join the system at 2013. Other ASEAN members will join later, except Brunei.[8]
References
- ^ http://www.aseanexchanges.org/Partners.aspx
- ^ ASEAN Trading link goes ‘LIVE’ connecting bursa Malaysia and Singapore Exchange! Published: Tuesday, Sep 18, 2012. http://aseanexchanges.org/MediaCentre.aspx
- ^ ASEAN Exchanges unveils key milestones in the development of the Asean Asset Class Published: Monday, Oct 15, 2012. http://aseanexchanges.org/MediaCentre.aspx
- ^ http://www.thejakartapost.com/news/2011/04/11/asean-moves-a-step-closer-market-integration.html
- ^ http://bizdaily.com.sg/newsite/southeast-asian-exchanges-collaborate-to-promote-region%E2%80%99s-capital-market-growth/
- ^ http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=10317:bursa-malaysia-6-bourses-launch-asean-brand-identity&Itemid=3&tmpl=component&print=1
- ^ ASEAN exchnge a great concept
- ^ http://www.reuters.com/article/2011/02/03/markets-asean-link-idINSGE71101M20110203