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Sec lending booms in smaller Asian markets

24 August 2011

Asian securities finance markets have been expanding despite the global economy stuttering. And with India and China yet to fully emerge, there is plenty of scope for growth, writes Elliot Wilson

Read more: PASLA Taiwan South Korea securities lending

Asia is the growth story of the securities lending market over the past decade. By June 2011 the six largest Asian securities lending countries had a total value of stock to loan of $891bn, according Data Explorers – 72% higher than 2009.  Meanwhile the total value of Asia-region stock on loan stood at $101.3bn at June, a 50% jump over the same period.And the majority of this growth has come from recent entrants to the securities lending market. Japan has been the driving force in the Asian market for some time but while its figures  increase as well reaching $353bn by June, this was just 5 % higher year-on-year.  Compare that to the likes of South Korea, whose market has nearly quadrupled in size over the past two years. Or Taiwan which has transformed from a country where securities lending barely existed just two years ago – the total value...