The latest "it" thing in Asian countries, eager to attract a greater share of global capital market deals, is to develop international financial hubs in the region, says Financial Times columnist Guy de Jonquieres. Before building those "fields of dreams", de Jonquieres cautions, Asian countries would do well to set up the prerequisites of a modern financial market. Corporate governance is one such prerequisite. So is efficient capital allocation, as well as transparent and competitive market practices.
How far are Asian markets from matching the global reach and depth of New York and London? Not even in the ballpark, de Jonquieres argues. He adds: Asia has some hard work ahead to institute good corporate governance practices, among others. The payoff, however, will be well worth it and measured in better, sustainable economic performance.
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