BRICS Financial Markets and Integration. growth. significance BRICS Financial Markets and Integration growth significance divergence drivers for integration bandi.ramprasad@ftkmc.com
BRICS Financial Markets and Integration BRICS Financial Markets and Integration growth Financial sector in the BRICS community rose significantly in the last two decades Growth spread across various segments of the financial system Markets have been playing an important role in the financial sector growth bandi.ramprasad@ftkmc.com
BRICS Financial Markets and Integration BRICS Financial Markets and Integration growth Share of BRICS in Global Total (in percent) 2002 2011 Market Capitalization 3 13 Value of Share Trading 1 9 Newly Issued capital 9 21 Banks in Global Top 1000 (No) 43 168 bandi.ramprasad@ftkmc.com
Prospects for Further Growth are Very High BRICS, though registered sharp growth in the financial sector, still show prospects for further growth Source DB Research bandi.ramprasad@ftkmc.com
Significance Brazil (Bovespa) and China (Shanghai and Hong Kong) in the Top 10 countries in Market Cap China (Shanghai, Shenzhen) in the Top 10 in Value of Stocks traded India in the Top 5 in Equity Derivatives Russia and Johannesburg in the Top 5 in Bond Trading Brazil in the Top 5 in Interest Rate Derivatives India in the topmost position in Currency Futures bandi.ramprasad@ftkmc.com
Significance India among the Top 3 in commodity futures China (HK)/South Africa in the Top 5 exotic derivatives traded 10 of the global 30 derivatives exchanges are from BRICS USD-INR contract is the largest number of contracts traded Of the Top 20 metal futures contracts, eight are from MCX BRICS accounted for nearly 50% of the new capital raised in global exchanges in 2011 China accounted for nearly 40% of the new capital raised globally in the last three years bandi.ramprasad@ftkmc.com
Significance bandi.ramprasad@ftkmc.com BRICS account for a sizeable part of the global market capitalization Source DB Research bandi.ramprasad@ftkmc.com
Divergence bandi.ramprasad@ftkmc.com
Divergence bandi.ramprasad@ftkmc.com
Divergence bandi.ramprasad@ftkmc.com
Divergence bandi.ramprasad@ftkmc.com
Divergence bandi.ramprasad@ftkmc.com
International Finance bandi.ramprasad@ftkmc.com Financial institutions’ access international debt securities in Brazil , Russia, India and China Source DB Research bandi.ramprasad@ftkmc.com
FDI from BRICS bandi.ramprasad@ftkmc.com BRICS are emerging as important sources of Foreign Direct Investment flows to other countries Source DB Research bandi.ramprasad@ftkmc.com
Dominant State Ownership Government Ownership is predominant in the Banking sector. Stock Market ownership is diverse Source DB Research bandi.ramprasad@ftkmc.com
Dominant State bandi.ramprasad@ftkmc.com Corporate Bond Market, considered vital for the economy, is low with a large chunk of debt securities accounted by the Government Source DB Research bandi.ramprasad@ftkmc.com
BRICS Financial Markets and Integration BRICS Financial Markets and Integration integration Cross-listing of benchmark equity index derivatives on each others platforms. (from 30th March 2011) Brazil’s IBOVESPA futures; Russia’s MICEX Index futures; India’s Sensex Index futures; Hong Kong’s Hang Seng Index futures and Hang Seng China Enterprises Index futures; and South Africa’s FTSE/JSE Top 40 futures Proposal to trade among themselves in local currencies Proposal for a new development bank Cooperation of commodity derivatives exchanges bandi.ramprasad@ftkmc.com
BRICS Financial Markets and Integration BRICS Financial Markets and Integration integration Whether BRICS could be anchor countries for regional financial market development and integration India : South Asia; China : East and Southeast Asia Russia : CIS/CEE; Brazil : LatAm; South Africa : Africa BRICS Cross-Listing of Securities : Further Progress of BRICS Exchange Alliance Infrastructure Financing and Corporate Bond Market Development SME Financing Instruments bandi.ramprasad@ftkmc.com
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