Regional Integration of Capital Markets in ASEAN Recent Developments, Issues, and Strategies (with Special Reference to Equity Markets)

Efforts to promote regional economic cooperation and integration in South-East Asia and particularly in the Association of South-East Asian Nations (ASEAN) countries, have received greatly increased emphasis in offi cial circles since the Asian crisis of 1997‐98. South-East Asian fi nancial integration with the world is well advanced by various measures; but they appear to have become more integrated with countries outside the region than within the region. Regional integration of private capital markets have shown limited progress. This was caused by several factors, including: (i) the large differences in the levels of market development; (ii) the lack of convergence of regulations and rules governing markets; (iii) differences in the extent to which the measures, to enable and benefi t from greater regional integration, are incorporated into their national development plans; (iv) prevalence of exchange restrictions and intra-regional exchange stability considerations that hinder integration; and fi nally (v) the missing markets, in derivatives or in key regionally-focused products, hinder both domestic market