Markets are large and growing
Inefficiencies exist due to significant regional disparities
The region has experienced six major market crises over the last 30 years.
While idiosyncratic market moves add a layer of risk to be managed, they also offer significant opportunity.
Economic development disparities:
E.g. Hong Kong’s GDP per capita (PPP) at 55k USD, while Vietnam’s at 5.6k USD
Legal and Political differences:
E.g. Singapore with #1 position as least corrupt country in the world, while China #78 and India #87
Internal market complexities:
E.g. China’s companies trading several share classes, including A-shares, B-shares, H-shares, etc. traded in Shanghai; Shenzhen; Hong Kong and on other offshore exchanges
E.g. currencies vary from freely floating (JPY, KWD), through managed floats (CNY, TWD) and pegged (HKD) to fully managed and restricted (VND)