IDEAS home Printed from https://ideas.repec.org/p/ris/adbrei/0121.html
   My bibliography  Save this paper

Capital Market Financing for SMEs: A Growing Need in Emerging Asia

Author

Listed:

Abstract

Asia’s bank-centered financial systems require the reduced supply-demand gap in lending as a core policy pillar to improve small and medium-sized enterprise (SME) access to finance. Meanwhile, the diversification of financing modalities beyond conventional bank lending is another key policy pillar to better serve various financing needs of SMEs and expand their financial accessibility. The rapid growth of emerging Asia is generating SMEs’ long-term funding needs and requires robust capital markets as an alternative channel for providing their growth capital. The G20 Leaders also addressed the importance of promoting long-term financing for SMEs in the context of investment. The development of capital markets that SMEs can tap is one of the policy challenges under the pillar of diversified financing modalities, which requires more sophisticated and innovative institutional arrangements in order to respond effectively to their real needs. This paper explores the potential of capital market financing for SMEs in emerging Asia, reviewing the challenges of existing SME capital markets and assessing demands on SMEs, regulators, policy makers, market organizes, securities firms, and investors for developing an SME market, based on the findings from intensive surveys. Given the responses to the national growth strategies and the cross-cutting issues of global policy agendas such as climate change, energy efficiency, and green finance, the potential for developing the exercise equity market and the social capital market in Asia is also explored in this paper.

Suggested Citation

  • Shinozaki, Shigehiro, 2014. "Capital Market Financing for SMEs: A Growing Need in Emerging Asia," Working Papers on Regional Economic Integration 121, Asian Development Bank.
  • Handle: RePEc:ris:adbrei:0121
    as

    Download full text from publisher

    File URL: http://aric.adb.org/pdf/workingpaper/WP121_Shinozaki_Capital_Market_Financing.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Park, Cyn-Young & Majuca, Ruperto & Yap, Josef, 2010. "The 2008 Financial Crisis and Potential Output in Asia: Impact and Policy Implications," Working Papers on Regional Economic Integration 45, Asian Development Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. International Monetary Fund, 2015. "Philippines: Selected Issues," IMF Staff Country Reports 2015/247, International Monetary Fund.
    2. Ajai Chopra, 2015. "Financing Productivity- and Innovation-Led Growth in Developing Asia: International Lessons and Policy Issues," Working Paper Series WP15-6, Peterson Institute for International Economics.
    3. Johnson, Barbara & Kotey, Richard Angelous, 2018. "The Influence of Small and Medium Enterprises (SMEs) Listing on the Ghana Alternative Market (GAX): Prevailing Factors," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 4(4), pages 142-156.
    4. Courage Mlambo, 2022. "The impact of international portfolio investment on economic growth: the case of selected African states," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 151-159, December.
    5. Peter J. Morgan, 2022. "Fintech and Financial Inclusion in Southeast Asia and India," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 183-208, July.
    6. Siti Zaitun Saddam & Nurhuda Nizar & Nurul Azrin Ariffin & Norazira Mohd Abas, 2023. "The Effects of Dynamic Capabilities on Firm’s Financial Performance," Information Management and Business Review, AMH International, vol. 15(1), pages 37-45.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hamanaka, Shintaro, 2010. "Institutional Parameters of a Region-Wide Economic Agreement in Asia: Examination of Trans-Pacific Partnership and ASEAN+α Free Trade Agreement Approaches," Working Papers on Regional Economic Integration 67, Asian Development Bank.
    2. Lin, Mi & Kwan, Yum K., 2013. "FDI Technology Spillovers and Spatial Diffusion in the People’s Republic of China," Working Papers on Regional Economic Integration 120, Asian Development Bank.
    3. Nesadurai, Helen E.S., 2010. "Labor and Grassroots Civic Interests In Regional Institutions," Working Papers on Regional Economic Integration 63, Asian Development Bank.
    4. Hix, Simon, 2010. "Institutional Design of Regional Integration: Balancing Delegation and Representation," Working Papers on Regional Economic Integration 64, Asian Development Bank.
    5. Nasir, Shahbaz & Kalirajan, Kaliappa, 2014. "Modern Services Export Performances among Emerging and Developed Asian Economies," Working Papers on Regional Economic Integration 143, Asian Development Bank.
    6. Hamanaka, Shintaro, 2014. "World Trade Organization Agreement on Trade Facilitation: Assessing the Level of Ambition and Likely Impacts," Working Papers on Regional Economic Integration 138, Asian Development Bank.
    7. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2011. "The Role of the People’s Republic of China in International Fragmentation and Production Networks: An Empirical Investigation," Working Papers on Regional Economic Integration 87, Asian Development Bank.
    8. Voeten, Erik, 2010. "Regional Judicial Institutions and Economic Cooperation: Lessons for Asia?," Working Papers on Regional Economic Integration 65, Asian Development Bank.
    9. Wang, Yong, 2010. "Evolving Asian Power Balances and Alternate Conceptions for Building Regional Institutions," Working Papers on Regional Economic Integration 68, Asian Development Bank.
    10. Hill, Hal & Menon, Jayant, 2014. "Trade Policy Challenges in a Small, Open, Fragile, Postconflict Economy: Cambodia," Working Papers on Regional Economic Integration 141, Asian Development Bank.
    11. Estrada, Gemma & Park, Donghyun & Park, Innwon & Park, Soonchan, 2011. "ASEAN’s Free Trade Agreements with the People’s Republic of China, Japan, and the Republic of Korea: A Qualitative and Quantitative Analysis," Working Papers on Regional Economic Integration 75, Asian Development Bank.
    12. Cheong, David, 2010. "Methods for Ex Ante Economic Evaluation of Free Trade Agreements," Working Papers on Regional Economic Integration 52, Asian Development Bank.
    13. Han, Fei & Hee Ng, Thiam, 2011. "ASEAN-5 Macroeconomic Forecasting Using a GVAR Model," Working Papers on Regional Economic Integration 76, Asian Development Bank.
    14. Cyn‐Young PARK & Jong‐Wha LEE, 2011. "Financial Integration in Emerging Asia: Challenges and Prospects," Asian Economic Policy Review, Japan Center for Economic Research, vol. 6(2), pages 176-198, December.
    15. Hill, Hal & Menon, Jayant, 2010. "ASEAN Economic Integration: Features, Fulfillments, Failures and the Future," Working Papers on Regional Economic Integration 69, Asian Development Bank.
    16. Dieter, Heribert, 2014. "The End of Grand Expectations: Monetary and Financial Integration After the Crisis in Europe," Working Papers on Regional Economic Integration 127, Asian Development Bank.
    17. Hong, Kiseok & Tang, Hsiao Chink, 2010. "Crises in Asia: Recovery and Policy Responses," Working Papers on Regional Economic Integration 48, Asian Development Bank.
    18. Takagi, Shinji, 2010. "Regional Surveillance for East Asia: How Can It Be Designed to Complement Global Surveillance?," Working Papers on Regional Economic Integration 50, Asian Development Bank.
    19. Baldwin, Richard, 2010. "Sequencing regionalism: Theory, European practice, and lessons for Asia," CEPR Discussion Papers 7852, C.E.P.R. Discussion Papers.
    20. Khadiagala, Gilbert M., 2011. "Institution Building for African Regionalism," Working Papers on Regional Economic Integration 85, Asian Development Bank.

    More about this item

    Keywords

    Financial inclusion; innovative financing; long-term financing; SME capital markets; SME finance;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbrei:0121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivan B. de Leon (email available below). General contact details of provider: https://edirc.repec.org/data/oradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.