ASIFMA 2023/2024
Asia-Pacific CapitalMarkets Survey

Disclaimer
The information and opinion commentary in this ASIFMA
2023/2024 Asia-Pacific Capital Markets Survey Report was
prepared by the Asia Securities Industry and Financial Markets
Association (ASIFMA) to reflect the views of firms who participatedin this Survey. The data on which this Report and its conclusions
were based was gathered from participating firms between
September - December 2023. ASIFMA believes that the informationin this Report, which has been obtained from multiple sources isreliable as of the date of publication. As estimates by individual
sources may differ from one another, estimates for similar typesof data could vary within the Report. In no event, however,does ASIFMA make any representation as to the accuracy orcompleteness of such information. ASIFMA has no obligation to
update, modify or amend the information in this Report or tootherwise notify readers if any information in the Report becomesoutdated or inaccurate.

2About ASIFMAASIFMA (Asia Securities Industry &Financial Markets Association) is anindependent, regional trade association
comprising a diverse range of over 165
leading financial institutions from both the
buy and sell side, including banks, asset
managers, professional services firms andmarket infrastructure service providers.
Together, we harness the shared interestsof the financial industry to promote thedevelopment of liquid, deep and broad
capital markets in Asia. ASIFMA advocatesstable, innovative competitive Asian
capital markets that are necessary tosupport the region’s economic growth.
We drive consensus, advocate solutions
and effect change around key issues
through the collective strength andclarity of one industry voice. Our many
initiatives include consultations withregulators and exchanges, development of
uniform industry standards, advocacy forenhanced markets through policy papers,
and lowering the cost of doing businessin the region. Through the GFMA alliancewith SIFMA in the US and AFME in Europe,
ASIFMA also provides insights on global
best practices and standards to benefit
the region.
www.asifma.org

3

Content
Overview and objectives����������������������������������������������������������������������������������������������������������������������������������������������� 6
Executive summary������������������������������������������������������������������������������������������������������������������������������������������������������� 7
1. Historical trend of participation in surveyed markets������������������������������������������������������������������������������������������9a. Historical trend of participation in surveyed markets�������������������������������������������������������������������������������������9b. Historical trend of whether that participation is onshore�����������������������������������������������������������������������������10c. Historical trend of whether that participation is offshore����������������������������������������������������������������������������11
2. Future market sentiment and related expansion/exit plans ����������������������������������������������������������������������������12
a. Future market sentiment and related expansion plans - are firms increasing operations
and investment and how?����������������������������������������������������������������������������������������������������������������������������..12
b. Future market sentiment and related expansion plans - in what services/products are
firms increasing operations and investment?����������������������������������������������������������������������������������������������..14
c. Future market sentiment and related expansion plans - where are firms increasing
operations and investment? ��������������������������������������������������������������������������������������������������������������������������16
d. Future market sentiment and related expansion plans - where are firms expanding
offshore or onshore? �������������������������������������������������������������������������������������������������������������������������������������17
e. Future market sentiment and related exit plans - are firms reducing operations andinvestment and how? ������������������������������������������������������������������������������������������������������������������������������������19
3. Participants’ views on the markets����������������������������������������������������������������������������������������������������������������������20
a. Participants’ views on the markets – APAC market ratings on ease of doing business�����������������������������..20
b. Participants’ views on the markets – ranking of APAC markets������������������������������������������������������������������..21
4. Participants’ views on the historical changes�����������������������������������������������������������������������������������������������������22
a. Participants’ views on the historical market development – changes in the past three years��������������������22b. Participants’ views on the historical operating environment – changes in the past three years����������������23c. Participants’ views on the historical regulatory environment – changes in the past three years���������������24
5. Participants’ views on the future changes����������������������������������������������������������������������������������������������������������26
a. Participants’ views on the future market development – changes in the next three years �����������������������25
b. Participants’ views on future market development – where will it be harder to operate
in the next 3 years? ���������������������������������������������������������������������������������������������������������������������������������������26
c. Participants’ views on the future operating environment – changes in the next three years ��������������������27

4

d. Participants’ views on the future operating environment – where will it be harder to operate
in the next 3 years? �������������������������������������������������������������������������������������������������������������������������������������� 28
e. Participants’ views on the future regulatory environment – changes in the next three years �����������������29
f. Participants’ views on the future regulatory environment – where will it be harder to operate
in the next 3 years? �������������������������������������������������������������������������������������������������������������������������������������� 30
6. Market outlook��������������������������������������������������������������������������������������������������������������������������������������������������� 32
a. Market outlook – top market attractions under market development �����������������������������������������������������31
b. Market outlook – top market attractions under operating environment��������������������������������������������������32
c. Market outlook – top market attractions under regulatory environment�������������������������������������������������33
d. Market outlook – top market impediments under market development��������������������������������������������������34
e. Market outlook – top market impediments under operating environment����������������������������������������������35
f. Market outlook – top market impediments under regulatory environment���������������������������������������������36
7. ESG and sustainable finance������������������������������������������������������������������������������������������������������������������������������ 37
a. ESG and sustainable finance – ranking of markets based on ease of engaging in ESG
and sustainable finance�������������������������������������������������������������������������������������������������������������������������������� 37
b. ESG and sustainable finance – ranking of markets based on ease of engaging in ESG
and sustainable finance considering clear ESG and sustainable finance roadmap������������������������������������39
c. ESG and sustainable finance – ranking of markets based on ease of engaging in ESG
and sustainable finance considering adequately skilled workforce����������������������������������������������������������� 40
d. ESG and sustainable finance – top market attractions and impediments for a market
to be a desirable place in which to engage in ESG and sustainable finance ����������������������������������������������41
e. ESG and sustainable finance – which areas provide the greatest potential for growthin the next three years?�������������������������������������������������������������������������������������������������������������������������������� 42
f. ESG and sustainable finance – which instruments provide the greatest potential for
growth in the next three years?������������������������������������������������������������������������������������������������������������������� 43
g. ESG and sustainable finance – what are the greatest challenges with the overalldesign of sustainability disclosures and reporting?������������������������������������������������������������������������������������� 44
Appendix A. Survey background, methodology and participants������������������������������������������������������������������������� 45
Appendix B. List of participants�������������������������������������������������������������������������������������������������������������������������������� 49
Appendix C. Glossary������������������������������������������������������������������������������������������������������������������������������������������������� 50

5

ASIFMA is the only regional capital markets industry tradeassociation in Asia and conducts this regular survey to reflect
members’ perceptions of the attractiveness of doing businessin the surveyed markets from the perspectives of market
development, operating and regulatory environments, andfactors that contribute positively or negatively. The survey alsopresents dynamic pictures and presents views about the pastand future three year horizon.

Overview andobjectives

The survey has been conducted among buy and sell side
member firms and has focused on thirteen selected APAC
markets: Australia, Mainland China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore,
Taiwan, Thailand and Vietnam. The data on which thisreport and its conclusions were based was gathered fromparticipating firms between September and December 2023.
Ernst & Young Advisory Services Limited (“EY”) assisted
ASIFMA in the survey design, collection and analysis of theparticipants’ views and drafting this report. ASIFMA reviewed
the report and its final content.

6

ASIFMA’s Asia-Pacific Capital Market Survey has been conductedsince 2021. As this is the third consecutive year of issuing thisreport, we have highlighted emerging trends over these past years.

Increased participation but a less optimistic future

Executive
Summary

A key finding from this year’s survey is the changing market
sentiment. Although the level of participation in surveyed markets
has increased this year, looking forward, market sentiment inrespect of the next three years is less optimistic. Only 40% ofsurvey participants intend to expand their business operations in
APAC markets, which represents a 24% decrease when comparedwith last year (64%). The areas of intended expansion match thepredominant existing business profiles of survey participants:
equities, asset management and fixed income businesses.

Market dynamics among key APAC jurisdictions
India was identified as the most prominent target market
for expansion, with over 65% of the participants considering
expanding their presence there. At the same time the popularityof Mainland China and Hong Kong as target markets for further
expansion is slipping this year. The percentage of participants
with expansion plans in Mainland China decreased from 88% in
2021, to 74% in 2022 and further to 58% this year, and those withexpansion plans in Hong Kong declined from 54% in 2021 and 57%
in 2022, to 33% this year.

Easiest markets to do business inThis year participants ranked Singapore, Hong Kong and Australia
as the top three markets in APAC to do capital markets businessbased on market development and the regulatory and operating
environments.
The most common factors that make markets attractive to
do capital markets business identified this year are payments
infrastructure (market development), language skills (operating
environment), the quality of the anti-bribery and corruption
framework, the lack of currency controls and the strength ofinvestor protection (all regulatory environment).
While the factors that make markets least attractive are difficulties
in unavailability of stock borrowing & lending and short-selling,
and currency convertibility (both market development), thepolitical situation, tax environment (both operating environment),
and the lack of a quality of the anti-bribery and corruption
framework (regulatory environment). Geopolitical tensions in theregion remain a major concern when operating in some APAC
7

markets according to participants’ comments.
The ease of operating in APAC capital markets has largely
been stable both historically (looking back three years) andprospectively (looking forward three years). However, there arethree exceptions:Executive
Summary•More participants view Hong Kong as being harder to operate
in from the operating environment and market development
perspectives over the past three years when compared toother jurisdictions, and view the upcoming three years as also
challenging.

•Participants view Mainland China as having more challenging
state of market development, operating and regulatoryenvironment in the past three years, and the views on theoutlook for the next three years remain muted.

•

The regulatory environment in Australia remain in the past
three years has been regarded as challenging by participants.

ESG and sustainable finance
A continuous focus of the report is on sustainable finance businessin APAC markets. 53% of this year’s participants are offering ESG
and sustainable finance products which is 6% higher than lastyear. Singapore and Hong Kong remained the top two markets
identified as the best places in which to engage in ESG andsustainable finance. Singapore was ranked as the top market
having a clear ESG and sustainable finance roadmap. Hong Kongis considered the market with the best skilled workforce, closely
followed by Australia, Singapore.

8

1

a. Historical trend of participation in surveyed markets

The survey assesses 13 APAC markets and looks at the level of participation, whether onshore or offshore, which has
increased this year. Although, there was a general decline in the level of participation in 2022 in all markets except
Vietnam, this year respondents signaled increased participation and operation in most observed markets. However, market
participation still has not reached the levels of 2021. India is the only market that is seeing a higher level of operation ascompared to three years ago.
100.00%90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%

2021

2022

Hong Kong

Singapore

Mainland China

Australia

Japan

Korea

TaiwanIndia

Indonesia

ThailandThe Philippines

Malaysia

VietnamFigure 1. Percentages of survey participants operating in surveyed APAC markets 2021-2023

9

2023

1

b. Historical trend of whether that participation is onshore

The jurisdictions with more mature financial markets and more participants’ presence (e.g. Hong Kong, Singapore,
Australia) show a higher percentage of onshore operation. The percentage of participants choosing onshore operation inmost markets experienced a decrease in 2022 and then a recovery in 2023.
2021

2022

2023

120%
100%

97% 94%

93%

80%

92%

83%

92%

85%

83%

91%

70%

79%

88%

89%

75%

88%

60%

68%

40%

67%

72%

71%

50%

48%

Taiwan

Korea

20%
0%

Hong
Kong

Singapore

36% 63%60%

Mainland
China

Australia

Japan

120%
100%
80%
60%

76%

70%
41%

40%

52%

52%

39% 42%

42% 35%

47%

46%

47%

54%

47%

33%

20%
0%

India

Indonesia

ThailandThe
Philippines

Malaysia

VietnamFigure 2. Percentages1 of survey participants operating in surveyed APAC markets choosing onshore 2021-2023
The “onshore” (“offshore”) % = Number of participants operating “onshore” (“offshore”) ÷ overall no of participants
operating their business in that market
1

10

1

C. Historical trend of whether that participation is offshore

Operating offshore is more dominant in emerging to frontier financial markets (e.g. Indonesia, Thailand, Vietnam). From an
offshore perspective, the percentage of participants choosing offshore operation in most markets experienced a spike in
2022 and a pullback in 2023.
2021
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

53%

47%
26%

35%
29%

37%

38%

34%

Singapore

82%

77%
64%

Mainland
China

62%

36%

Australia

83%
72%

54%

48%

Singapore

70%
46%

35%

74%

Japan

71%

75%

53%
42%

58%

ThailandThe
Philippines

Korea

Taiwan

68%

46%

India

71%

68%
52%

Malaysia

62%

73% 72%

VietnamFigure 3. Percentages1 of survey participants operating in surveyed APAC markets choosing offshore 2021-2023
The “onshore” (“offshore”) % = Number of participants operating “onshore” (“offshore”) ÷ overall no of participants
operating their business operations in that market
1

11

2023

27%

23%

Hong
Kong

48%

58%

62%

2022

a. Future market sentiment and related expansion plans - arefirms increasing operations and investment and how?

2

Even though there has been an increase in participation in the surveyed markets over the last three years and a recovery
from a dip in the last year, participants’ market sentiment with respect to the next three years is less optimistic comparedto the last two years. The percentage of survey participants intending to expand their presence in APAC markets dropped
from 62% and 64% in the last two years to 40% this year. Those stating that they will not be expanding their operations
continuously rose from 13% in 2021 to 19% in 2022 and then to 33% this year. The group which is uncertain as to whether
to expand operations also grew from 17% to 27% this year, showing that the level of market uncertainty has returned to the2021 level (26%).

2021

13%

62%

2022

64%

2023

20

17%

19%

40%

0

26%

33%

40

27%

60
Yes

No

80

100

120

Not sure

Figure 4. Does your firm plan to expand your business in the surveyed markets?

122

a. Future market sentiment and related expansion plans - arefirms increasing operations and investment and how?

The majority of participants who have expansion and/or investment plans this year intend to expand the scale of existing
business (92%) and product/service offerings (83%) more than expanding via other means (e.g., investments andestablishing presence in more markets). This is largely in line with the results of the last two years. Organic growth seems tohave been the preferred market development model.

92%
92%

Expanding thethe scalescale ofof exis�ng
exis�ng businessbusiness
Expanding

83%
83%

Expansion ofof product/service
product/service oﬀerings
oﬀerings
Expansion

Expansion ofof investments
investments
Expansion

50%
50%

Establishing presence
presence inin moremore markets
markets
Establishing

50%
50%

0
0

40
40

60
60

80
80

Establishing presence
presence inin moremore markets
markets
Establishing

Expansion ofof investments
investments
Expansion

Expansion ofof product/service
product/service oﬀerings
oﬀerings
Expansion

Expanding thethe scalescale ofof exis�ng
exis�ng businessbusiness
ExpandingFigure 5. Nature of expansion plans

13

20
20

100
100

2

b. Future market sentiment and related expansion plans - inwhat services/products are firms increasing operations andinvestment?

As shown earlier, expanding the scale of operations and product offerings in key markets is a priority for most participants
this year. As such, areas of expansion match the predominant existing business profiles of survey participants. The greatestemphasis is on expansion of operations in equities, asset management and fixed income.

Equi�es

58%

Asset management

58%

Fixed income

50%

FX

50%
42%

ESG & sustainable Inves�ng/Sustainable FinanceCommercial/corporate/ins�tu�onal banking

33%

Wealth management

33%
25%

Commodi�es
Investment banking

17%

Prime brokerage

17%

Retail banking 0%
0%

10%

20%

30%

40%

50%

60%

70%

Figure 6. Expansion areas of survey participants

14

b. Future market sentiment and related expansion plans - inwhat services/products are firms increasing operations andinvestment?

2

Survey participants have deprioritized ESG and sustainable finance this year in terms of increasing operations andinvestment (42% v.s 58% in 2021 and 57% in 2022), but it remains a relatively high priority compared to traditional banking
businesses including commercial, corporate and institutional banking, commodities, investment banking, prime brokerage
and retail banking.
2021
80%

67%

70%
60%
50%
40%

52%

58%

2022

2023

67%

52%

58%

52% 50%38%

58% 57%
50%
50%
43%

42%
33%33%

30%

21%

20%
10%
0%

80%
70%
60%
50%
40%
30%
20%
10%
0%

Asset
management

33% 33%33%

Wealthmanagement

Fixed
incomeEqui�es

25%

33%
25%

Commodi�es

FX

25%
14%17%

Investmentbanking

ESG &sustainable
Finance

17%
17%
10%
Prime
brokerage

Figure 7. Products/services to increase operations and investments 2021 – 2023 comparison

15

Commercial/corporate/ins�tu�onal
banking

4%

10%

0%
Retailbanking2c. Future market sentiment and related expansion plans - where
are firms increasing operations and investment?

This figure shows which markets are more popular among survey participants to expand in. In particular, the popularity ofMainland China and Hong Kong as target markets for expansion is slipping this year. India has been continuously climbing
up over the past three years and has become the top target market for expansion. 67% of the survey participants who want
to expand in APAC markets are showing interest in expanding their presence in India. Korea has surpassed Japan, Taiwan
and Australia, reaching 4th place this year in the ranking of markets in which participants intend to increase operations andinvestment. The Philippines, although still being ranked in the bottom tier, has been consistently gaining more attention overthe past three years and catching up with other jurisdictions including Thailand and Vietnam.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

2021

2022

2023

India

Singapore

Mainland China

Korea

Japan

Hong Kong

Australia

Taiwan

Malaysia

Indonesia

Thailand

Vietnam

The Philippines

Figure 8. Target market for expansion 2021 – 2023
This figure shows the percentage1 of survey participants who plan to expand within a given market within a given year.
The % = Number of participants that want to expand in the given market ÷ total number of participants that want toexpand in APAC markets
1

16

2

d. Future market sentiment and related expansion plans where are firms expanding offshore or onshore?

The graphs below showed the percentages of participants choosing onshore expansion in APAC markets over the past three
years. There is not a clear common pattern shared across the markets. 100% of the participants that intend to expand theirbusiness operations in Singapore, Japan, Hong Kong and Australia will consider onshore expansion.
2021

2022

2023

120%
100%
80%

86%

100%

100%

100%
78%

86% 82% 86%

100%
75%

63%

60%

100%

78% 82%

67% 67%

100%
92%

100%

100%
90%

40%
20%
0%

Mainland
China

Singapore

India

Japan

Korea

Hong
Kong

Australia

120%

80%
60%

100%

100%

100%
71%

75%
60%

75%
60%

67%

75%

44%

40%

60%

67%
44%

50%

57%

67%
33%

33%

20%
0%

Taiwan

Malaysia

Indonesia

Thailand

Vietnam

The
Philippines

Figure 9. Percentages1 of participants choosing onshore expansion in target markets 2021-2023
The “onshore” % = Number of participants who want to expand “onshore” ÷ overall no of participants that intend to
expand their business operations in that market
1

17

2

d. Future market sentiment and related expansion plans where are firms expanding offshore or onshore?

The graphs below show the percentages of participants choosing offshore expansion in APAC markets over the past three
years. There is no clear common pattern shared across the markets. All of the participants that intend to expand theirbusiness operations in Vietnam will consider offshore expansion.
2021

120%

2022

2023

100%
80%
56% 50%

60%
40%

39%

36%

20%

67% 67%

53%
29%

33%

42%

33%

29%

45%

31%

40%
15%

8%

0%

India

Mainland
China

Singapore

Korea

Hong
Kong

Japan

40%
25%

25%
0%
Australia

120%
100%

100%
80%
60%

57%

70%

67%
50%

40%

67% 67%
44%

40%

50%

67%

57%
33%

40%

17%

20%
0%

75%

75%

Taiwan

Malaysia

Indonesia

Thailand

Vietnam0%

The
Philippines

Figure 10. Percentages1 of participants choosing offshore expansion in target markets 2021-2023
The “offshore” % = Number of participants who want to expand “offshore” ÷ overall no of participants that intend to
expand their business operations in that market
118

e. Future market sentiment and related exit plans - are firms
reducing operations and investment and how?

2

Only one survey participant indicated plans to exit markets in APAC this year, which is the same as last two years. Fewerparticipants are not reducing operations and investment (down from 94% in 2022 to 74% this year, which is a similar levelwith 2021 at 72%) Further, the survey participants who are uncertain about whether or not to reduce their presence in
APAC has increased from 3% to 22% this year. The market uncertainty this year has returned to the level of 2021 (23%).

5%

2021

2022

3%

2023

4%

0%

72%

94%

3%

74%

10%

20%

30%

Figure 11. Market exit plans

22%

40%
Yes

19

23%

50%
No

60%
Not sure

70%

80%

90%

100%

3

a. Participants’ views on the markets – APAC market
ratings on ease of doing businessThis year, participants ranked Singapore, Hong Kong and Australia as the top three markets in APAC to operate in based onmarket development, regulatory and operating environment. Hong Kong has risen back in its ranking to 2nd place (which
was its ranking back in 2021) from 4th place in 2022 and Taiwan rose from 6th place (in both 2022 and 2021) to 4th place,
this year. The rankings of Mainland China and The Philippines has also improved by 3 and 2 places respectively. Japan was
no longer among the top 3, being ranked at 5th place. The ranking of Korea decreased from 5th place in 2022 to 8th place thisyear. The South Korean regulator imposed a short-selling ban in November 2023 that will be in place until June 2024 andthat affects all listed stocks in Korea, which might have become a disadvantageous factor from the regulatory environment
perspective. Thailand has been continuously declining in ranking, from 5th in 2021, to 9th in 2022 and 12th in 2023.

Markets

Average
Score

Ranking in 2023
(Change to last year)

Ranking in 2022
(Change to last year)
1 (-)

Rankingin 2021

Singapore

7.67

1 (-)

Hong Kong

7.38

2(

2)

4(

2)

2

Australia

7.16

3(

1)

2(

1)

3

Taiwan

6.61

4(

2)

6 (-)

Japan

6.60

5(

2)

3(

1)

4

India

5.94

6(

1)

7(

3)

10

Mainland China

5.84

7(

3)

10 (

1)

9

Korea

5.74

8(

3)

5(

2)

7

Malaysia

5.72

9(

1)

8 (-)

8

The Philippines

5.65

10 (

2)

12 (-)

12

Indonesia

5.58

11 (-)

11 (-)

11

Thailand

5.38

12 (

9(

5

Vietnam

5.14

13 (-)

3)

1

6

4)

13 (-)

13

Table 1. Ranking changes of markets based on average score across three factors1
Ranking of the markets (1-13); 1 being the highest and 13 being the lowest
Note. Each market is scored by those participants that operate or intend to operate in it. The rating of each market reflects
the average of those scores.

1

20

3

b. Participants’ views on the markets – ranking of APAC
markets

The figure below shows the participant’s views on each APAC market from three perspectives: regulatory environment,
operating environment and market development. Generally, markets score consistently across all three fields of analysis.
India, China and Korea are notable for having regulatory environment scores below their operating environment and market
development scores.
8

7

6

5

4

3

2

1

0

Singapore Hong Kong Australia

TaiwanJapan

Market development

India

Mainland
China

Korea

Opera�ng environment

Figure 12. Scoring of markets based on average score across three factors

21

Malaysia

The
Indonesia Thailand
Philippines

Regulatory environment

Vietnama. Participants’ views on the historical market
development – changes in the past three years

4

The figure shows the ease of operating in each APAC capital market from the perspective of market development overthe past three years based on whether a market has become easier or harder to operate in over the past 3 years or has
remained the same. More participants think it has become harder to operate in Mainland China, Hong Kong and Taiwan
from the perspective of market development over the last three years, the impact brought by COVID-19 related policies
and geopolitics issues (e.g. sanctions) might be part of the factors considered by survey participants. This contrasts with theoverall assessment of China by market participants when judged from all three perspectives (market development, operating
and regulatory environment), where China rose by three rankings from last year. A relatively larger number of participantsconsider it has become easier to operate in India from the perspective of market development in the past three years.

100

80

60

40

20

0
Indonesia Vietnam

Malaysia

Japan

Thailand Singapore

The
Philippines

Same

Harder

Korea

India

Australia

TaiwanMainland
China

Hong
Kong

EasierFigure 13. Summary of participants’ views on occurred market development changes in the past 3 years

224b. Participants’ views on the historical operating
environment – changes in the past three years

The figure shows the ease of operating in each APAC capital market from the perspective of operating environment over the
past three years. In general, participants hold the view that APAC markets are the same or harder to operate in over the past
three years, with overall less than 10% choosing easier. More survey participants consider that Hong Kong and Mainland
China have become relatively harder to operate in, in terms of operating environment than the other markets.

100

80

60

40

20

0
Japan

Korea

Indonesia Malaysia

The
VietnamPhilippines
Same

TaiwanHarderThailand Australia Singapore
EasierIndia

Mainland
China

UnsureFigure 14. Summary of participants’ views on occurred operating environment changes in the past 3 years

23

Hong
Kong

4

c. Participants’ views on the historical regulatoryenvironment – changes in the past three years

The figure shows the ease of operating in each APAC capital market from the perspective of regulatory environment over the
past three years. Australia and Mainland China were viewed by an overwhelming majority of survey participants as harder
to operate in from the perspective of their regulatory environments. India and Indonesia are the only two markets receiving
over 20% positive responses viewing them as easier to operate in owing to their regulatory environments.
100

80

60

40

20

0
Malaysia

The
Philippines

Japan

Thailand

Vietnam

Same

Hong
Kong

Korea

HarderTaiwanSingapore Indonesia

EasierUnsureIndia

Australia

Mainland
China

Figure 15. Summary of participants’ views on occurred regulatory environment changes in the past 3 years

24

5

a. Participants’ views on the future market development –changes in the next three years

The figure shows the participants’ views on the ease of operating in each APAC capital market from the perspectiveof market development in the next three years. More survey participants (around 50%) view India as a promisingmarket in which it would be easier to operate in the coming three years. Reasonable proportions of survey participantsalso saw Mainland China, Hong Kong, Australia and Taiwan as harder to do business in from a market development
perspective in the next 3 years.

100

80

60

40

20

0
Japan

Malaysia

Thailand

Vietnam

Korea

Same

Indonesia

The
Philippines

HarderIndia

EasierSingapore

TaiwanHong
Kong

Australia

UnsureFigure 16. Summary of participants’ views on anticipated market development changes in the next 3 years

25

MainlandChina

5b. Participants’ views on future market development –where will it be harder to operate in the next 3 years?

The figure shows the percentages of participants anticipating that it will become harder to operate in APAC capital
markets from the perspective of market development in the next three years. There is an upward trend in the participants’
anticipation of difficulties in operating business in several markets, especially Mainland China. Hong Kong has consistently
stayed at a relatively high level and Australia shows a large increase in participant’s anticipation of operational difficulties in
the market from the perspective of market development this year compared to previous two years.
35

30

25

20

15

10

5

0
Japan

Malaysia

Thailand

Vietnam

Korea

Indonesia

2021

The
Philippines

India

2022

2023

Singapore

TaiwanHong Kong Australia Mainland
China

Figure 17. Percentage of participants’ anticipation as harder to operate in the markets from a market development
perspective in the next 3 years
26

5c. Participants’ views on the future operating
environment – changes in the next three years

The figure shows the participants’ view toward the favorability of the operating environment in the next three years.
India is the market that most survey participants consider will be easier to operate in from the perspective of operating
environment in the next 3 years. Reasonable proportions of participants think that Mainland China, Hong Kong, Singapore
and interestingly India (given the previous result) will be harder markets to operate in from the perspective of the operating
environment in the next 3 years.
100

80

60

40

20

0
Korea

Japan

Indonesia Malaysia

The
VietnamPhilippines

Same

Australia

HarderTaiwanEasierThailandSingapore

India

Hong
Kong

UnsureFigure 18. Summary of participants’ views on anticipated operating environment changes in the next 3 years

27

MainlandChina

5d. Participants’ views on the future operating environment –where will it be harder to operate in the next 3 years?

The figure shows the percentages of participants anticipating a more challenging operating environment in the next three
years. By combining the responses across 2021-2023, there are consistently fewer participants anticipating it will be harder
to operate in Hong Kong and Mainland China from the perspective of the operating environment.

50

40

30

20

10

0
Korea

Japan

Indonesia Malaysia

The
VietnamPhilippines

2021

Australia

Taiwan2022

2023

Thailand Singapore

India

Hong
Kong

Mainland
China

Figure 19. Percentage of participants’ anticipation as harder to operate in the markets from an operating environment
perspective in the next 3 years

28

5

e. Participants’ views on the future regulatory environment –changes in the next three years

The figure shows the ease of operating in markets from the perspective of regulatory environment in the next three years.
The market that the largest proportion of survey participants (around 60%) considered would be harder to operate in froma regulatory environment perspective in the next 3 years is Mainland China. Interestingly, Australia, is also a market with arelatively high proportion of survey participants who consider will be harder to operate in from a regulatory environment
perspective in the next years.
100

80

60

40

20

0
Indonesia Malaysia

Vietnam

Japan

Korea

The
ThailandPhilippines

Same

HarderTaiwanEasierSingapore

Hong
Kong

India

Australia

UnsureFigure 20. Summary of participants’ views on anticipated regulatory environment changes in the next 3 years

29

MainlandChina

5f. Participants’ views on the future regulatoryenvironment – where will it be harder to operate in thenext 3 years?

The figure shows the percentages of participants anticipating that it will become harder to operate in each APAC capital
market from the perspective of the regulatory environment in the next three years. Fewer participants anticipate it will beharder to operate in APAC markets in the next three years from the regulatory environment perspective, except Australia
and Mainland China, for which there is a significant increase in participants expecting it will be harder to operate from a
regulatory environment perspective this year, compared with 2021 and 2022 results.
60

50

40

30

20

10

0
Japan

Malaysia

Thailand

Vietnam

Korea

Indonesia

2021

The
Philippines

India

2022

2023

Singapore

TaiwanHong
Kong

Australia Mainland
China

Figure 21. Percentage of participants’ anticipation as harder to operate in the markets from a regulatory environment
perspective in the next 3 years
30a. Market outlook – top market attractions under market
development

6

The table shows the most attractive factors relevant to operating in each APAC market from the perspective of market
development. The most common factor under market development that makes markets attractive this year is payment
infrastructure, compared with trading and exchange infrastructure in 2022 and growing customer base and wealth in 2021.
Ranking of
the markets

Market1

Singapore

7.67

Trading and exchange
infrastructure

FinTech development

Fintech development

2

Hong Kong

7.38

Currency convertibility

Trading and exchange infrastructure

Clearing and settlement
infrastructure

3

Australia

7.16

Trading and exchange
infrastructure

Availability of hedging
Trading and exchange infrastructure
Transparency of market information

Transparency of market
information

4

Taiwan6.61

Trading and exchange
infrastructure

Transparency of market information

Clearing and settlement
infrastructure

5

Japan

6.60

Currency convertibility

Trading and exchange infrastructureMarket liquidity and depthMarket liquidity and depth

6

India

5.94

Economic growth rate

Trading and exchange infrastructure

Growing customer base andwealth7

Mainland
China

5.84

Payments infrastructure

Growing customer base and wealthGrowing customer base andwealth

8

Korea

5.74

Clearing and settlement Trading and exchange infrastructure
infrastructureMarket liquidity and depth

9

Malaysia

5.72

Payments infrastructure

Clearing and settlement
infrastructure
Payments infrastructure

Growing customer base andwealth10

The
Philippines

5.65

Payments infrastructure

Growing customer base and wealthGrowing customer base andwealth11

Indonesia

5.58

Economic growth rate

Growing customer base and wealthGrowing customer base andwealth12

Thailand

5.38

Payments infrastructure

Growing customer base and wealthGrowing customer base andwealth13

Vietnam

5.14

Economic growth rate
Inflation rate

Economic growth rate

Growing customer base andwealthEconomic growth rate

Average Market developmentscore(2023)

Market development(2022)

Table 2. Summary of top market development attractions to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
31

Market development(2021)

Transparency of market
information

b. Market outlook – top market attractions underoperating environment

6

The table shows the most attractive factors relevant to operating in each APAC market from the perspective of operating
environment. The most common factor under operating environment that makes markets attractive this year is language
skills, compared to workforce skills both in 2022 and 2021.
Ranking of
the markets

Market1

Averagescore

Operating environment(2023)

Operating environment(2022)

Operating environment(2021)

Singapore

7.67

Language skills

Political situation

Workforce skills

2Hong Kong

7.38

Availability of professional
service support

Workforce skills

Workforce skills

3

Australia

7.16

Language skills

Workforce skills

Workforce skills

4

Taiwan6.61

Fairness in law enforcement

Workforce skills

Workforce skills

5

Japan

6.60

Physical infrastructure

Political situation

Physical infrastructure

6

India

5.94

Human resourcing supply

Workforce skills
Language skills

Workforce skills

7

Mainland
China

5.84

Digital infrastructure

Digital infrastructure

Digital infrastructure
Workforce skills

8

Korea

5.74

Digital infrastructure

Digital infrastructure

Digital infrastructure

9

Malaysia

5.72

Language skills

Language skills

Language skills

10

The
Philippines

5.65

Language skills

Language skills

Workforce skills

11

Indonesia

5.58

Availability of professional
service support
Political situation

Political situation

Competitive landscape

12

Thailand

5.38

Competitive landscape
Cost of doing business

Cultural and societal factors
Cost of doing business
Competitive landscape13

Vietnam

5.14

Cultural and societal factors

Cost of doing business

Political situation

Table 3. Summary of top operating environment attractions to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
32

c. Market outlook – top market attractions underregulatory environment

6

The table shows the most attractive factors relevant to operating in each APAC market from the perspective of regulatoryenvironment. The most common factors under regulatory environment that make markets attractive this year are the qualityof the anti-bribery and corruption framework, lack of currency control and the strength of investor protection, comparedwith predictable and transparent regulatory policy in both 2022 and 2021.
Ranking of
the markets

Market1

Average
score

Regulatory environment(2023)

Regulatory environment(2022)

Singapore

7.67

Quality of anti-bribery andcorruption framework

Predictable and transparent Predictable and transparent
regulatory policy
regulatory policy

2

Hong Kong

7.38

Currency control

Tax environment

3Australia

7.16

Currency controls

Predictable and transparent Predictable and transparent
regulatory policy
regulatory policy

4

Taiwan6.61

Investor protection
Quality of anti-bribery andcorruption framework

Investor protection

5

Japan

6.60

Currency control

Predictable and transparent Predictable and transparent
regulatory policy
regulatory policy

6

India

5.94

International sanctions

Investor protection

Investor protection

7

Mainland
China

5.84

Quality of anti-bribery andcorruption framework

Investor protection

Licensing requirements
Investor protection

8

Korea

5.74

Investor protection

Quality of anti-bribery andcorruption framework

Quality of anti-bribery andcorruption framework

9

Malaysia

5.72

Investor protection

Prudential regulations
Predictable and transparent Investor protection
regulatory policy

10

The
Philippines

5.65

Labor laws
Outsourcing regulations

Outsourcing regulations

Outsourcing regulations

11

Indonesia

5.58

International sanctions

Licensing requirements

Foreign ownership regulations
Other foreign investment regulations
Restrictions on product/service
offerings
Licensing requirements
Outsourcing regulations
Other foreign investment regulations
Tax environment

12

Thailand

5.38

Restrictions on product/
service offerings

Outsourcing regulations
Restrictions on product/
service offerings

13

Vietnam

5.14

Labor laws

Tax environment
Other foreign investment
regulations

Table 4. Summary of top regulatory environment attractions to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
33

Regulatory environment(2021)Tax environment

Predictable and transparent
regulatory policy
Foreign ownership regulations

d. Market outlook – top market impediments under market
development

6

The table shows the top factors considered as impediments in each market from the perspective of market development.
The factors under market development that make markets least attractive are difficulties in currency convertibility andunavailability of stock borrowing & lending and short-selling, compared with difficulties in currency convertibility in 2022
and market liquidity and depth, difficulties in currency convertibility in 2021.
Ranking of
the markets

Market1

Singapore

7.67

Economic growth rate

Market liquidity and depthMarket liquidity and depth

2Hong Kong

7.38

Economic growth rate

Economic growth rate

Economic growth rate

3

Australia

7.16

FinTech development

Regional integration

Regional integration

4

Taiwan

6.61

FinTech development

Currency convertibility

Range of product/service offerings

5

Japan

6.60

Economic growth rate

Economic growth rate

Economic growth rate

6

India

5.94

Currency convertibility

Currency convertibility

Currency convertibility

7

Mainland
China

5.84

Currency convertibility

Currency convertibility

Currency convertibility

8

Korea

5.74

Availability of stock
Availability of stock borrowing
borrowing & lending and& lending and short-sellingshort-selling

9

Malaysia

5.72

Market liquidity and depth

10

The
Philippines

5.65

Availability of stock borrowing
Market liquidity and depth& lending and short-sellingMarket liquidity and depth

11

Indonesia

5.58

Availability of stock borrowing
Market liquidity and depth& lending and short-sellingMarket liquidity and depth

12Thailand

5.38

Economic growth rate

5.14

Availability of stock borrowing Transparency of market& lending and short-sellinginformation

13

VietnamAveragescore

Market development(2023)

Market development(2022)

Market liquidity and depth
Currency convertibility

Availability of stock
borrowing & lending andshort-sellingMarket development(2021)

Availability of stock borrowing &lending and short-selling
Currency convertibility

Availability of stock borrowing &lending and short-selling
Transparency of market
information
Range of product/
service offerings

Table 5. Summary of top market development impediments to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
34

e. Market outlook – top market impediments under operating
environment

6

The table shows the top factors considered as impediments in each market from the perspective of operating environment.
The factor under operating environment that makes markets least attractive is the political situation, as in 2022 and 2021.
The political situation has been identified as the top operating environment impediment for Hong Kong, Malaysia andThailand for all three years 2021-2023.
Ranking of
the markets

Market1

Averagescore

Operating environment(2023)

Operating environment(2022)

Singapore

7.67

Cost of doing business

Immigration law

Immigration law

2Hong Kong

7.38

Political situation

Political situation

Political situation

3

Australia

7.16

Competitive landscape

Cost of doing business

Immigration law

4

Taiwan6.61

Business incentives

Political situation

Political situation

5

Japan

6.60

Language skills

Language skills

Language skills

6

India

5.94

Barriers to entry

Cost of doing businessPhysical infrastructure

Physical infrastructure

7

Mainland
China

5.84

Political situation

Political situation
Barriers to entry

Barriers to entry

8

Korea

5.74

Business incentives
Cost of doing business

Barriers to entry
Language skills

Language skills

9

Malaysia

5.72

Political situation

Political situation

Political situation

10

The
Philippines

5.65

Fairness in law enforcement

Physical infrastructure

Physical infrastructure

11

Indonesia

5.58

Cybersecurity

Physical infrastructure

Fairness in law enforcement

12

Thailand

5.38

Political situation

Political situation

Political situation

Physical infrastructure

Language skills
Digital infrastructure
Physical infrastructure
Availability of professional service
support13

Vietnam

5.14

Availability of data centers

Table 6. Summary of top operating environment impediments to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
35

Operating environment(2021)

f. Market outlook – top market impediments under regulatoryenvironment

6

The table shows the top factors considered as impediments in each market from the perspective of regulatory environment.
The factors under regulatory environment that make markets least attractive are tax environment, and the lack of a quality
anti-bribery and corruption framework, compared with currency controls both in 2022 and 2021.
Ranking of
the markets

Market1

Average
score

Regulatory environment(2023)

Regulatory environment(2022)

Regulatory environment(2021)

Singapore

7.67

Outsourcing regulations

Outsourcing regulations

Outsourcing regulations

2

Hong Kong

7.38

International sanctions

International sanctions

International sanctions

3

Australia

7.16

Tax environment

Tax environment

Tax environment

4

Taiwan

6.61

Currency controls
Cross-border regulation

Restrictions on product/
service offerings

Restrictions on product/service
offerings

5

Japan

6.60

Labor laws

Tax environment

Tax environment

6

India

5.94

Data localization
requirements
Tax environment

Currency controls

Currency controls

7

Mainland
China

5.84

Data localization
requirements

Currency controls

Currency controls

8

Korea

5.74

Labor laws

Restrictions on product/
service offerings
Licensing requirements

Licensing requirements

9

Malaysia

5.72

Quality of anti-bribery andcorruption framework

Currency controls

Currency controls

10

The
Philippines

5.65

Quality of anti-bribery andcorruption framework

Tax environment

Tax environment

11

Indonesia

5.58

Quality of anti-bribery andcorruption framework

Data localization
requirements

Data localization requirements

12

Thailand5.38

Tax environment

Currency controls

Currency controls

13

Vietnam

5.14

Foreign ownership regulations Currency controls

Currency controls

Table 7. Summary of top regulatory environment impediments to operate in APAC markets*Note. Ranking (1-13) - 1 being the highest and 13 being the lowest
36

7

a. ESG and sustainable finance – ranking of markets based onease of engaging in ESG and sustainable financeThe chart shows the markets ranked by the average score for each market considering 16 factors related to engaging in ESG
and sustainable finance in observed markets.
6.55

Singapore
6.20

Hong Kong
Mainland China

6.09

Australia

6.05
5.59

Japan
India

5.40

Thailand

5.38

Taiwan

5.30
4.95

Malaysia
4.63

Korea
4.29

Indonesia

4.06

Vietnam
3.50

The Philippines
0

1

2

3

Average score

Figure 22. Leading markets for ESG and sustainable finance in APAC

37

4

5

6

7

7

a. ESG and sustainable finance – ranking of markets based onease of engaging in ESG and sustainable financeThe chart shows the markets ranked by the average score for each market considering 16 factors related to engaging in
ESG and sustainable finance in observed markets. Singapore and Hong Kong remain the top two markets identified as thebest places in which to engage in ESG and sustainable finance this year. Australia remains the 4th place while Mainland
China and Japan switch their places as Mainland China becomes 3rd place in 2023 and Japan is ranked at 5th. India andThailand both climb up three places, ranked at 6th and 7th respectively. Korea drops to 10th from 6th in 2022. These
questions were not asked in 2021.
Markets

Ranking in 2023

Ranking change
2022-2023

Ranking in 2022

Singapore

1

1-Hong Kong

2

2-

Mainland China

35Australia

4

4

Japan

5

3

2

India

6

9

3

Thailand7

10

3

Taiwan8

7

1

Malaysia

9

8

1

Korea

10

6

4

Indonesia

1111Vietnam

12

13

1

The Philippines

13

12

1

2
-

-

Table 7. Ranking changes to markets for ESG and sustainable finance in APAC

38

7

b. ESG and sustainable finance – ranking of markets based onease of engaging in ESG and sustainable finance considering
clear ESG and sustainable finance roadmap

The following chart shows markets’ ranking for ease of engaging in ESG and sustainable finance based on whether themarket has a clear ESG and sustainable finance roadmap. Participants rate Singapore the highest, Hong Kong as the second
highest, then Thailand, and Mainland China.
7.63

Singapore
6.92

Hong Kong
Thailand

6.33

Mainland China

6.33
6.17

Australia

5.92

Japan
Indonesia

5.75

Malaysia

5.67

Taiwan

5.56
5.33

India
4.89

Korea
4.50

Vietnam

4.33

The Philippines
0

1

2

3

4

5

Average score

Figure 23. Leading markets in APAC for a clear ESG and sustainable finance roadmap

39

6

7

8

7

c. ESG and sustainable finance – ranking of markets based onease of engaging in ESG and sustainable finance considering
adequately skilled workforce

The following chart shows markets’ ranking for ease of engaging in ESG and sustainable finance considering whether
there is an adequately skilled workforce. Many survey participants noted that the lack of an adequately skilled workforce
has become an impediment for many APAC markets in developing ESG and sustainable finance. The ranking result showsthat Hong Kong is considered the market with the best skilled workforce, closely followed by Australia, Singapore.
Hong Kong

6.47

Australia

6.45

Singapore

6.44
5.86

Mainland China
India

5.33

Japan

5.27
5.00

Thailand
Malaysia

4.83

Taiwan

4.75
4.56

Korea
4.00

Vietnam

3.75

Indonesia
3.00

The Philippines
0

1

2

3

4

5

6

7

Average score

Figure 24. Leading markets in APAC for ESG disclosures by adequately skilled workforce40

d. ESG and sustainable finance – top market attractions and
impediments for a market to be a desirable place in which toengage in ESG and sustainable finance7

The table below shows the top attraction factors and top impediment factors when considering engaging in ESG andsustainable finance in each market. The most common top attraction is a clear ESG and sustainable finance roadmap and themost common top impediment is (a lack of) credibility and liquidity of carbon markets.
Top attraction            Top impediment15      

            Clear ESG and sustainable finance roadmap

00

Availability of blended capital0Adequate carbon price
Sufficient publicly available ESG and sustainablefinance related data3         Credibility and liquidity of carbon markets

Clear net-zero targets and policy framework fromthe government to incentivize sustainable economic
development2             4        

   

1

0

           

1Clear, balanced and usable taxonomies            

1Comprehensive but balanced ESG and sustainable financedisclosure regulations

0           

1Interoperable ESG and sustainable finance regulations

0            

1Ease of access to sustainability linked capital(e.g., via pension/sovereign wealth funds)0   

Table 8. Top attractions and top impediments to conduct sustainable finance in APAC markets

41

5

1

4

7

e. ESG and sustainable finance – which areas provide thegreatest potential for growth in the next three years?

Participants view carbon related management and removal technologies, smart mobility (e.g., EVs/autonomous driving/batteries) as the top two areas for growth of sustainable finance. The buy-side displayed relatively more interest in
smart mobility (e.g., EVs/autonomous driving/batteries) and natural capital and biodiversity while the sell-side are moreinterested in industrial (e.g., green mining/steel), food-tech (e.g., alternative/plant-based foods) and property tech(e.g., green material).
7

Carbon related management and removal technologies

113

Smart mobility (e.g., EVs / autonomous driving / ba�eries)

10

1

Natural capital and biodiversity

7

4

Industrial (e.g., green mining / steel)1

Biotech / Health-tech

43

Food-tech (e.g., alterna�ve / plant-based foods)

Agri/Land tech (e.g., fer�lizer alterna�ves) 0

3

1

3

2 0

Property Tech (e.g., green material)
05sell side

10

15

20

buy sideFigure 25. Top areas that provide greatest potential for sustainable finance growth in the next three years

42

7

f. ESG and sustainable finance – which instruments provide
the greatest potential for growth in the next three years?

Participants view sustainability-linked financing, green and other sustainable bond issuance as the top instruments for
growth for ESG and sustainable finance. Sell-side and buy-side views are generally the same except that the participants who
selected green deposits are mostly from the buy-side.

7

Sustainability-linked ﬁnancing

13

6Green and other sustainable bond issuance

Sustainable trade ﬁnance loans

3Green mortgages

3

1

Green deposits
0

12

7

3

4
5

10
sell side

15

20

buy sideFigure 26. Top instruments that provide greatest potential for ESG and sustainable finance growth in the next three years

43

7

g. ESG and sustainable finance – what are the greatest
challenges with the overall design of sustainability disclosuresand reporting?

Survey participants have rated international applicability and interoperability as the greatest challenge with the overalldesign of sustainability disclosures and reporting in APAC. Apart from the challenge options offered, participants
supplemented with other disclosure-related challenges such as insufficient or unbalanced corporate ESG and sustainablefinance disclosure regulations, unwillingness by companies to provide more transparency through disclosure (disclosure
regulation from private companies, especially issuers of listed bonds, etc.).

7

Interna�onal applicability
and interoperability

8

5Sequencing of ﬁnancial and non-ﬁnancial
sector repor�ng and data availability

83

Uncertainty in the degree of, and consistency
in the implementa�on of ISSB standards

0

3

3

6

9

sell side

buy side12

15

Figure 27. Top challenges with the overall design of sustainability disclosures and reporting in the APAC

44

Appendix A. Survey background, methodology and participants
The survey was conducted amongst ASIFMA’s members, which comprise firms from North America, Europe (including UK
and Switzerland) and Asia-Pacific.
Survey participants place of origin
The figure below shows the breakdown of the survey participants by the locations of their headquarters.
3%

13%

3%

7%

3%

3%

40%

10%

13 %
Australia

Mainland China

Figure 28. Group headquarter locations

45

EU

India

Japan

Switzerland

UK

US

CanadaAppendix A. Survey background, methodology and participants
Survey participants profile
In comparison to the survey results of past two years, the percentages of participants offering sell-side services such as
investment banking/prime brokerage have declined along with the sell-side composition of the participants.
100
90
80

30%

70

53%

57%

47%

43%

2022

2023

60
50
40
30

70%

20
10
0

2021
sell side

buy sideFigure 29. buy/sell side breakdown46

Appendix A. Survey background, methodology and participants
Survey participants product offering
77% of the overall participants are engaged in asset management business, which displayed a steady increase from 53% in
2021 and 61% in 2022. Among the firms offering asset management services this year, 65% are purely buy-side firms while
35% are sell-side participants providing a mixture of buy/sell-side financial services.
Asset management

77%

Changes to 2022

Fixed income

60%+15.56%

ESG & sustainable Finance53%-3.89%

Equi�es50%+6.11%

FX

50%-13.89%Commercial/corporate/ins�tu�onal banking

33%

0Investment banking

33%+5.55%

Wealth management33%-5.56%

Commodi�es

33%-2.78%

Prime brokerage

20%-7.78%

Retail banking

20%

3.33%

Figure 30. products/services breakdown47

Appendix A. Survey background, methodology and participants
Survey participants market participation
Half of the survey participants operate in more than 10 markets in APAC, which is a slight increase compared to the last
two years (46% in 2022 and 47.36% in 2021).
50%

50

47%

46%

40
33%

32%
30

20

27%
23%

21%

21%

10

0

2022

2021
Below 5 markets

6-9 markets

2023
More than 10 markets

Figure 31. Number of APAC markets participants are present

48Appendix B. List of participants
1. APG Asset Management Asia

15. TCW

2. CLSA Asset Management Limited

16. Schroders

3. Pictet Asset Management

17. Vanguard

4. Manulife AM

18. State Street Global Advisors

5. ING Bank N.V. Singapore

19. AllianceBernstein L.P.

6. Susquehanna Pacific Pty Ltd

20. HSBC

7. Macquarie Group

21. Edelweiss Financial Services Limited

8. Goldman Sachs (Asia) LLC

22. The Blackstone Group Inc.

9. First Sentier Investors

23. State Street Corporation

10. Daiwa Capital Markets

24. Standard Chartered Bank

11. UBS AG

25. Jane Street Group, LLC

12. Robecco

26. Oversea-Chinese Banking Corporation Limited

13. Principal Global Investors, LLC

27. Citibank

14. Goldman Sachs Asset Management, L.P.

28. BNY Mellon

And two participants who requested anonymity.

49

Appendix C. Glossary
Regulatory Environment
Currency controls

Currency controls, foreign exchange controls or currency exchange controls
refer to restrictions applied by some governments to ban or limit the saleor purchase of foreign currencies by nationals and/or the sale or purchaseof local currency by foreigners.

2

Foreign ownership regulations

Foreign ownership regulations refer to the regulatory framework over theownership of a portion of a country’s assets (businesses, natural resources,
property, bonds, equity etc.) by individuals who are not citizens of thatcountry or by companies whose headquarters are not in that country.

3

Other foreign investment
regulations

Foreign investment regulations refer to restrictions limiting the investment
or requirement to obtain a consent to invest in domestic companies.

4

Data localization requirements

Data localization or data residency law requires data about a nation’s
citizens or residents to be collected, processed, and/or stored inside thecountry, often before being transferred internationally.

5

International sanctions

International sanctions are restrictions on trade and economic relations
between individuals, organizations or countries based on specific reasons.

Quality of anti-bribery andcorruption framework

The framework prohibits the actual or attempted use of any form ofbribery or corruption, either directly or indirectly. A “bribe” is anything ofvalue given, offered, promised, accepted, requested or authorized (in eachcase, directly or indirectly) with the intent that a person who is trusted or
expected to act in good faith or with impartiality, performs that function
improperly or in order to obtain or retain an advantage in the course ofbusiness. “Corruption” is the misuse of public office or power for private
gain; or misuse of private power in relation to business outside the realmof government.

7

Licensing requirements

Licensing requirements means any provisions of law, rule, regulation, orformal order of the department which apply to facilities with respect toinitial or continued authority to operate.

8

Restrictions on product/service
offerings

Requirement to obtain special permits and licenses before selling certain
product/service offerings.

1

6

50

Appendix C. Glossary

Tax environment

Tax environment means a set of legal regulations for determining thetypes, percentage and amounts of taxes specified in the applicable laws
and their imposition and payment.

Predictable and transparent
regulatory policy

Transparency and predictability of regulations and procedures at borders
are widely recognized as an essential element of trade facilitation. The
WTO Glossary defines transparency as the “Degree to which trade policies
and practices, and the process by which they are established, are open
and predictable”. The same concept can be applied to financial services
regulations. The concepts of transparency and predictability are always
associated with each other.

11

Investor protection

Various measures designed to protect investors from malpractices ofcompanies, investment banks, deposit taking institutions and otherintermediaries.

12

Prudential regulations

Prudential regulation is a legal framework focused on the financial safety
and stability of institutions and the broader financial system.

Reporting requirements

Reporting requirements means any applicable laws, rules, regulations,
instruments, orders or directives and any requirements of a regulatory
or supervisory organization that mandate reporting and/or retention oftransaction and similar information.

14

Outsourcing regulations

Outsourcing regulations govern the provision of service in which a
regulated firm contracts with or otherwise engages a service provider
for the performance of any aspect of the outsourcing firm’s regulated or
unregulated functions that could otherwise be undertaken by the entity
itself on an ongoing basis.

15

Labor laws

Labor law is legislation specifying responsibilities and rights in
employment, particularly the responsibilities of the employer and therights of the employee.

16

Cross-border regulation

Cross-border regulations refer to the licensing and product authorization
requirements for the overseas firms dealing with domestic customers or
counterparties.

9

10

13

51

Appendix C. Glossary
Operating Environment
1

Workforce skills

Workforce skills means the knowledge, skills, and competencies that
employees can provide to financial services intermediaries.

2

Language skills

Skills that enable a person to communicate orally or in writing in English orother languages widely used internationally or regionally.

3

Digital infrastructure

Digital infrastructure refers to the digital technologies that provide thefoundation for an organization’s information technology and operations.

4

Physical infrastructure

Physical infrastructure refers to the physical availability and quality of
public facilities, including the number of facilities, facility amenities andresources, the distribution of facilities, and the appropriate mix of facility
types to meet industry needs.

5

Cost of doing business

The cost of doing business definition is any expense a business incurs whilein the process of conducting business. A cost of doing business could be adirect cost, like raw materials, or an indirect cost, like building security.

6

Political situation

The meaning of “political” is of or relating to government, a government,or the conduct of government. Political situation refers to the stabilityof the governance in a jurisdiction and whether it is conducive to thepredictable conduct of business.

7

Immigration law

Immigration law includes the national statutes, regulations, and legal
precedents governing immigration into and deportation from a country.

8

Fairness in law enforcement

Fairness in law enforcement refers to predictable and transparent
application of laws in a fair and consistent manner following due process.

Barriers to entry

Barriers to entry describe the high start-up costs or other obstacles thatprevent new competitors from easily entering an industry or area of
business.

Business incentives

Governments can offer financial assistance to private businesses making
investments through the use of economic incentives. Incentives can
include tax abatements, tax revenue sharing, grants, infrastructureassistance, no or low-interest financing, free land, tax credits and otherfinancial resources.

9

10

52

Appendix C. GlossaryCompetitive landscapeThe competitive landscape refers to the list of options a customer could
choose rather than your products or services.

12

R&D innovation ability

Research and development (R&D) innovation is the process of developing
and commercializing new ideas, implementing new processes or changing
the way your business makes money. It can also be viewed as the activities
required to keep your business competitive and sustainable for the long
term.

13

Availability of data centers

Availability of technically advanced, resilient and physically cyber secure
facilities that electronic data storage.

14

Cybersecurity

The state of being protected against the criminal or unauthorized use ofelectronic data, or the measures taken to achieve this.

15

Cultural and societal factors

Features of a jurisdiction’s culture or society that are conducive to theefficient and open conduct of business.

16

Availability of professional service
support

The availability of a sufficient spread of competent special advisors ina range of disciplines (e.g., accountancy, law, IT, cybersecurity, taxation,
immigration, consultancies, etc.) needed to support financial services
business.

17

Human resourcing supply

Human resources supply is the source of workers to meet demandrequirements.

11

Market Development

1

Availability of hedging

The availability to legally conduct hedging against investment risk i.e.,
strategically using financial instruments or market strategies to offset therisk of any adverse movements in variables such as interest rate, currency
rate, price, etc.

2

Clearing and settlement
infrastructure

Clearing and settlement infrastructure means systems that clear and settle
transactions in securities such as bonds and equities, and in derivative
instruments such as options and futures.

Payments infrastructure

Payment infrastructure is a network of systems and technologies thatenable electronic payment processing. This network allows everyone in theecosystem to exchange payments from financial institutions to individuals.

353Appendix C. Glossary

Trading and exchange
infrastructure

Trading and exchange infrastructure consists of the delivery of direct
market data and order entry, colocated server access, bespoke networks,
time services, and client and counterpart connectivity.

5

FinTech development

Financial technology (better known as FinTech) is used to describe newtechnology that seeks to improve and automate the delivery and use offinancial services. FinTech development refers to the sophistication ofmarket and policy environment to support FinTech.

6

Availability of repo

The availability of market infrastructure and regulation that permit the useof repo. Repo or repurchase agreement is a short-term agreement to sell
securities in order to buy them back at a slightly higher price.

7

Availability of stock borrowing &lending and short-selling

The availability of market infrastructure and regulation that permit thestock borrowing & lending and short-selling. Short-selling refers to the saleof a security which you do not own. A stock-borrow is secured to cover
the delivery of the sale. A short sale is profitable if the price of the security
declines, allowing the short-seller to repurchase the securities at the lower
price and return the borrow.

8

Growing customer base andwealthThe future prospects of a market for a financial intermediary’s products
and services will depend on the growth rate of the population of relevant
customers and their ability to pay for those products and services (i.e.,their wealth).

Currency convertibility

Currency convertibility can be defined as the ability to exchange one
currency for another at a given conversion rate and in terms of the usabilityof a currency for foreign transactions. Regulatory restrictions on theconversion of currency exist in many markets.

Market liquidity and depthMarket liquidity and depth for a product is based on the number ofstanding orders to buy (bids) and sell (offers) at various price levels. In
addition to price levels, market depth considers the order size, or volume,
at each price level.

4

9

10

54

Appendix C. Glossary

11

Transparency of market
information

Market transparency describes the extent to which the details of market
activity are made public. Important information about a market that is
typically published includes the following: Last-sale reports: These reports
include the price, quantity, and possibly time of all trades as they occur. In
an equity market transparency refers to the timeliness and the accuracy of
disclosures by listed issuers of material price sensitive information.

12

Range of product/service offerings

A diversity and sophistication of financial product and service offerings in ajurisdiction.

Financial inclusion

Financial inclusion is when everyone can access financial services that
can help them build wealth, including savings, credit, loans, equity, andinsurance.

Regional integration

Regional integration refers to the degree to which a jurisdiction’s laws,
economy and infrastructure are interoperable with those of otherjurisdictions in the region.

15

Inflation rate

Inflation is the rate of increase in prices over a given period of time.
Inflation is typically a broad measure, such as the overall increase in prices
or the increase in the cost of living in a country.

16

Interest rate

An interest rate is a cost of borrowing money, expressed as a percentage ofthe amount borrowed.

Economic growth rate

An economic growth rate refers to the change in the value of all goods
and services produced within a country for a specific period in comparison
to an earlier period. It is depicted in terms of percentage. The economic
growth rate is a measure for knowing the relative health of an economy
over time.

13

14

17

55

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