Creation of Asean asset class pushed

The Association of Southeast Asian Nations (ASEAN) Exchanges, a group of seven bourses which includes the Philippine Stock Exchange, is plotting its next collaborative action to market and promote ASEAN as one asset class after successfully linking markets across the region over the past three years. ASEAN Exchanges chief executive officers (CEOs) which included PSE’s Hans Sicat convened yesterday to discuss their next step towards regional integration.

The collaboration of stock exchanges from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, however, noted that it is on track in creating an ASEAN asset class.

“The collaborative action amongst the ASEAN Exchanges has been a vital force in moving things forward to achieve our goals and this is most evident in the significant progress we have made over a relatively short period of time,” Singapore Exchange CEO Magnus Bocker said.

According to Bocker, each of the members has embarked on their own “in-market engaging activities with the market players to market and create greater visibility of ASEAN products to investors” since the ASEAN Exchanges inception some three years ago.

The ASEAN Exchanges, which was launched in April 2011, said it has been able to deliver on several key milestones such as the ASEAN Trading Link and development of a unique post trade solution which serves to provide greater exposure and access to the diverse range of investable companies across ASEAN.

“Since the formalization of ASEAN Exchanges in April 2011 by officially introducing ASEAN Exchanges website and until now, we have put in place the ASEAN Trading Link to connect our markets and, are able to also now provide streamlined, cost-effective post-trade procedures for cross-border transaction conducted via the ASEAN Trading Link,” Bocker said.

The seven ASEAN Exchanges have a combined market capitalization of approximately $2 trillion and more than $3,600 listed companies.

These companies include some of the largest and most dynamic companies in the world, encompassing various sectors such as banking and finance, energy, telecommunications, commodities and manufacturing.

The collaboration of the ASEAN Exchanges aims to promote the growth of the ASEAN capital market by driving cross-border collaboration, streamlining access to ASEAN, creating ASEAN-centric products and implementing targeted promotional initiatives.