Can Asia follow through on much-needed reforms?

ON ASIA

Battered Asian bond and equity markets recently took another beating from investor uncertainty over the Federal Reserve's tapering policy. But Asia is undertaking reforms to ensure its fate is in its own hands, argues UBP's Nina Wu.

Equity markets across Asia ex-Japan have steadily underperformed developed markets over the past three years. Looking ahead, some have speculated Asia’s fate is tied to US Fed policy. However, we believe Asia’s fate is in its own hands and recent developments will put the region on a path to more stable, sustainable growth that will see its markets outperform peers for multiple years.  In China, important measures have already been put in place in areas of structural risk. Interest rates are being liberalised, first on the lending and soon on the deposit side. Banks’ off-balance sheet...