This first edition of the OECD Asia Capital Markets Report provides an overview of capital market developments across the region. It opens with a chapter on capital markets and competitiveness, followed by analyses of public equity (Chapter 2), corporate debt (Chapter 3) and sustainable bond (Chapter 4) markets. A focus chapter (Chapter 5) explores AI-related innovation facilitators in finance. The report discusses key trends, opportunities and challenges in these areas. Each chapter includes policy considerations for policy makers and regulators on how capital markets can support high-growth and innovative industries, facilitate business expansion and promote sustainable growth.
Chapter 1 examines how capital markets contribute to Asia’s economic competitiveness. It highlights the continued reliance on bank financing and limited access to market-based funding in some countries. The chapter also explores the link between innovation and equity financing, and the impact of becoming a publicly listed firm on corporate investment.
Chapter 2 analyses equity market developments across Asia. It reviews two decades of growth, highlighting disparities across jurisdictions in market capitalisation, number of listed companies and liquidity. The chapter also explores the role of equity markets dedicated to growth companies, state-owned enterprise listings, private equity markets, and governance challenges and their impact on valuations. It also examines the investor base, noting the limited role of pension funds and the need to broaden retail engagement.
Chapter 3 examines the growth and structure of corporate debt markets across Asia. It reviews trends in bond issuance, syndicated loans and private credit, noting the region’s rising global share and continued reliance on bank financing. The chapter highlights differences in market maturity, the concentration of issuance in a few economies and the limited role of foreign investors. It also assesses credit quality, use of proceeds, and the challenges faced by smaller firms, including low credit rating coverage.
Chapter 4 examines the growth of sustainable bonds in Asia, focusing on green, social and sustainability bonds. It highlights the sharp rise in issuance, the dominance of green bonds and the widespread adoption of international standards. The chapter also explores market practices around use of proceeds, the role of second-party opinions, and ongoing concerns about transparency and greenwashing.
Chapter 5 explores the rise of innovation facilitators - such as sandboxes and hubs - across Asia, with a focus on their role in supporting AI-driven innovation. It outlines regional trends in AI activity, including mergers and acquisitions, venture capital deals and data centre growth. It also maps the facilitator landscape, highlighting key patterns, benefits and challenges.
This report is part of the OECD Capital Market Series, which supports policy discussions on how capital markets can better channel household savings into productive investment in the real economy. It draws on unique OECD datasets as well as original analyses of commercial and publicly available sources. A detailed description of data sources and methodology is provided in the Annex. The report is produced under a Japanese government-financed programme aimed at supporting the development of capital markets across Asia.