The prize and the journey

Euroclear brought together experts from ETF market players from across the Asia Pacific region to share their insights on the drivers for the ETF boom and themes for future developments in this rapidly growing and globally important market. 

One region with many diverse fragmented markets, but also offering unrivalled growth opportunities for bespoke tailored solutions in a region where one size will never fit all. 

World beating growth in ETFs

Over the past five years the Asia Pacific region has notched up the fastest growth in ETF Assets Under Management (AUM) of any region in the world. From a relatively low base, AUM have now passed USD 1 trillion and the trend looks set to continue, or even accelerate further. 

Positive regulatory reforms are providing a tailwind

One key driver of growth in the region has been regulatory reform. ETFs are now eligible for inclusion in both Korean pensions and Japan’s Nippon individual savings accounts, though in each case eligibility is restricted to locally registered ETFs.

Hong Kong has led the way with many reforms, including a settlement extension, a requirement for continuous two-sided quotes and a reduction in tick sizes. The exchange is also looking to become Asia’s gateway to cryptocurrencies.

Roboadvisors boosting retail investments

Singapore has a different strategy, one of stimulating retail interest in ETFs and being home to a number of roboadvisors, leading to a trebling of retail accounts in only three years. 

Hong Kong and Singapore also debuted their connectivity to Euroclear’s international ETF system in 2022 when they saw the first European ETF issuer cross-list ther ETFs on their respective exchanges. 

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