Stock Exchange Competition in Asia: Tokyo’s role as a financial center

Globalization and technological innovation have led to strong competition among stock exchanges world-wide. Of the actually existing almost 150 exchanges, approximately one third may be deemed to disappear or loose independence in the foreseeable future. The fiercest competition may be expected among regional exchanges that aim to become financial centers by attracting dual listings from issuers originally listed on smaller exchanges in the region and by knitting networks with other exchanges in the region and world-wide.

In Asia, the Tokyo Stock Exchange remains the biggest regional exchange by market capitalization, but its position is being contested by Hong Kong, Singapore, and Australia. Some researchers dare to mention even the Shanghai Stock Exchange and Korean Stock Exchange as competitors in the future. The speaker reports on the actual developments within the region and gives an introduction in his running research project on dual listings of Asian companies at stock exchanges in the region. He suggests that although Tokyo maintains the biggest bourse in Asia, it plays no significant role in capital acquisition of Asian companies and will have hard times to foster its position in the region.

Andreas Nabor is research fellow at the Hamburg Institute of International Economics (HWWA), Germany, and Ph.D. candidate at Hamburg University. Currently, he holds a dissertation fellowship from the German Institute for Japanese Studies.