WORLD
19.06.19 16:00
The local currency bond markets in emerging East Asia continued to expand over the first quarter of 2019 despite trade conflicts and moderating global growth, according to the Asian Development Bank’s (ADB) latest issue of the Asia Bond Monitor.
As InterPressNews was informed by the ADB, housing bonds and green bonds are potential areas of future growth.
"At the end of March, there were $15 trillion in local currency bonds outstanding in emerging East Asia, 2.9% more than at the end of 2018 and 14.0% more than at the end of March 2018. Bond issuance in the region, meanwhile, amounted to $1.4 trillion in the first quarter, 10.0% higher than in the last quarter of 2018 on the back of stronger issuance of government debt.
Emerging East Asia comprises the People’s Republic of China (PRC); Hong Kong, China; Indonesia; the Republic of Korea; Malaysia; the Philippines; Singapore; Thailand; and Viet Nam.
Foreign investors were upbeat on the PRC in the first quarter of 2019 due to a better-than-expected economic performance. Indonesia also enjoyed greater foreign investment but foreign holdings in the Philippines took a hit as investors cashed out profits. Uncertainty over the general election spurred a wait-and-see approach among foreign investors in Thailand.
Government bonds accounted for 61.7% of emerging East Asia’s total local currency bond stock at $9.3 trillion as of the end of March, a 14.0% increase versus end March 2018. Meanwhile, there were $5.8 trillion in corporate bonds outstanding, 14.2% more than a year earlier. The PRC remained the largest bond market in terms of size in emerging East Asia, with 75.3% of the region’s total outstanding bonds. Malaysia had the largest market for sukuk, or Islamic bonds, while the Republic of Korea had the largest bond-to-gross domestic product ratio in the first quarter of this year, at 125.6%.
In a special chapter, the report noted that developing a market for housing bonds would increase access to home loans at a time of rising demand and diversify housing finance, traditionally provided by commercial banks. Provision of housing finance through the bond market would also mitigate the maturity mismatch arising between typically long-term borrowing by homeowners and short-term bank loans. Developing a housing bond market can help countries raise funds to build more housing units, meeting the increasing housing demand while also contributing to growth and development through job creation, the report said.
Meanwhile, the continued development of Asia’s green bond market is helping the region finance climate mitigation and adaptation projects. For instance, a senior secured note from Indonesia’s Tropical Landscape Finance Facility in February financed a sustainable natural rubber plantation, while in May, Korea Water Resources Corporation sold Asia’s first-ever water bond to finance sustainable water management systems.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region,” the ADB said.
source: IPN/ interpressnews.ge
Read: 82
Write comment
(In their comments, readers should avoid expressing religious, racial and national discrimination, not use offensive and derogatory expressions, as well as appeals that are contrary to the law)
News feed
-
MIA to identify individuals calling for blocking roads artificially during Rustaveli Avenue rallies
18:0024.04.24
-
Lazare Grigoriadis leaves prison
17:3024.04.24
-
Irakli Kobakhidze to participate in the Conservative Political Action Conference in Hungary
17:0024.04.24
-
16:1724.04.24
-
15:3024.04.24
-
Youth social entrepreneurship support project kicks off
14:5024.04.24
-
14:0024.04.24
-
Tbilisi Mayor deems new stadium construction as a mega project
13:2024.04.24
-
12:2424.04.24
-
Rustavi City Council Chairman dismissed
11:3024.04.24
-
10:2224.04.24
-
9:0024.04.24
-
Tusheti Protected Landscape in Georgia’s north-east to expand by 2,245 hectares
18:0023.04.24
-
17:2823.04.24
-
16:5623.04.24
-
16:2023.04.24
-
15:4423.04.24
-
15:0623.04.24
-
Georgian PM, UN representatives review cooperation
14:3523.04.24
-
14:0023.04.24
-
Four people were arrested for making and issuing fake driving licenses
13:2023.04.24
-
12:3923.04.24
-
Georgian, Croatian foreign ministers discuss “fruitful” cooperation
11:3023.04.24
-
Georgian foreign office welcomes border delimitation deal between Armenia, Azerbaijan
10:4523.04.24
-
10:0023.04.24
-
8:0023.04.24
-
18:0022.04.24
-
Prosecutor's Office arrests organized criminal group members involved in call centres
17:2722.04.24
-
Economy Minister: Georgian economy to become “one of fastest-growing” in Europe, wider region
16:5522.04.24
-
Deputy Economy Minister: over million travellers, “record-high” EU visitors entered Georgia in Q1
16:3122.04.24
-
Girchi Party sceptical about their Political Lobbying bill's support in Parliament
16:0022.04.24
-
Russian occupation forces illegally arrest two citizens of Georgia near village of Dirbi
15:3022.04.24
-
14:5722.04.24
-
Shalva Papuashvili: The age permitted for marriage - 18 years - will be written in the Constitution
14:1622.04.24
-
13:1022.04.24
-
Environmental Ministry tightens restrictions on Boxtree cutting
12:3422.04.24