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Making Sense

Market Matters | Data Assets & Alpha Group: APAC Equity Market Structure & the Liquidity Landscape

Apr 2, 2024
Clare Witts and Eloise Goulder discuss the dynamics of APAC equity markets, focusing on the rise in turnover ratios, dominance of retail investors, and key market structure themes for 2024. They explore factors behind the growth in trading volumes in countries like Japan, India, Korea, and Taiwan, as well as the impact of systematic trading and retail trader participation. The discussion also covers retail trading trends, market structure changes, and complexities in the APAC market.
23:21

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Quick takeaways

  • APAC markets show increased turnover due to international investor interest fueled by stock connect.
  • Rise in APAC retail trader activity and systematic trading contributes to market turnover growth.

Deep dives

Factors Driving Increased Turnover in APAC Markets

Asia-Pacific (APAC) markets have seen a significant rise in turnover ratios due to various factors. The introduction of stock connect, facilitating cross-border trading between China and Hong Kong, has fueled international investor interest, notably with Northbound Connect trading exceeding $21 billion daily. Markets like Japan, India, Korea, and Taiwan have experienced notable trading volume growth driven by factors such as positive performance in AI and semiconductors, culminating in enhanced activity.

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