Wednesday, October 10, 2007

Global Market Share Of Financial Markets

Came across this really useful summary on the relative market share for each of the top global exchanges. The figures are for 2006 or the latest available figures. Bursa does not figure even in the top 28 in all categories, we are really small OK.

Equity Turnover

1) US: 49%

2) UK: 11%

3) Japan: 8.3%

4) Germany: 3.9%

5) France: 2.8%

6) Spain: 2.8%

7) Korea: 1.9%

others - Singapore: 0.3%; HK: 1.2%; Australia: 1.2%; Shanghai: 1.1%

Comments: There is a long way to go before its the Asian era. Sure, Asia is making deep inroads economically but its not a 3 year or 5 year thing. Its more like a 20 or 30 year change of tide. It will be unfair to criticise Bursa's turnover as we rely only on locally listed companies - an interesting fact, on certain trading days, the turnover value of just ONE South Korea stock (Samsung) is more than the value turnover of the entire Bursa!

Funds Raised Through IPO

1) UK: 16.9%

2) US: 16.3%

3) HK: 12.9%

4) Spain: 4.5%

5)Norway: 4.2%

Others - Singapore: 1.5%; Australia: 3.9%; Shanghai: 3.6%

Comments: Thanks to the huge H-shares listings, HK performed very well. That in itself is a huge boost to the vibrancy and revival of HK's financial markets. The preference for A-share listing by Beijing may slow things somewhat in 2008 and 2009 for HK. UK topped the US thanks to the aggressive and cowboy-town of AIM, and the overly-zealous Sarbanes-Oxley rules/guidelines. Can expect SOX to be watered down very soon. Singapore performed exceptionally well in attracting decent foreign companies and REITs to list on SGX.

FX Turnover

1) UK: 31.3%

2) US: 19.2%

3) Japan: 8.3%

4) Singapore: 5.2%

5) Germany: 4.9%

6) HK: 4.2%

Comments: UK maintained its dominance in forex as it straddles the crucial timezones for Asian / Europe / before passing the books to US. Singapore's strength shines through in forex despite having to compete in the same timezone as HK and Japan. SGX could parlay this advantage even better by linking up more with Chicago Merc.

Asia Scorecard: HK still in front as Asia's financial center even though Singapore has made good progress over the last 5 years. HK's financial future boosted by its ties with mainland China companies, and will be a crucial channel and conduit for them in the future. Even as the smog encapsulates HK, it is likely that its status as the Asian financial center will expand in importance in the coming years. The new fangled mini-financial supermarts in Dubai and Abu Dhabi will fill their niches, but won't be making much of a dot on the global stage for a very long time to come.

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