Asean public markets need better investability, access to attract Chinese investments: panellists

[SINGAPORE] Asean public markets need to boost investability and improve access for foreign investors in order to support greater cross-border flows between the region and China.

For Chinese investors, Asean capital markets pose challenges such as fragmented regulations and liquidity constraints, as well as a lack of transparency and investor familiarity, said panellists at CGS’ China-Asean Business Leaders Summit on Monday (Sep 21).

This is despite strong trade and private investment links between China and Asean – trade between the two blocs crossed US$1 trillion for the first time in 2025.

“Asean’s strength is in our diversity... it gives investors market exposure to different sectors and growth drivers – be it manufacturing, technology, financial services,” said Ian Chung, executive director at the markets, infrastructures and intermediaries department at the Monetary Authority of Singapore (MAS).

“But what that also means is that it is difficult for investors to understand how to navigate the different regulatory regimes in our markets.”

Chung was speaking at a panel on empowering capital flow between China and Asean.

Also on the panel was Shahrul Amry Abdul Malek, director of market development at the Securities Commission Malaysia; Iding Pardi, director of business development at the Indonesia Stock Exchange (IDX); Soravis Krairiksh, senior executive vice-president and chief markets officer at the Stock Exchange of Thailand (SET); and Abhishek Bakshi, head of Asean issuer services at Hong Kong Exchanges and Clearing (HKEX).

The panel was moderated by CGS International group chief executive Carol Fong.

Shahrul expects Asean markets to “need more work” in terms of awareness and communication, especially for foreign investors.

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“When it comes to (investing in Asean), I think it’s a mistake just to look at broad indices,” he said. “In this region, we need to deep dive a bit on sectors and thematics.”

Chung noted feedback from investors that Asean’s markets lack liquidity. In the past few years, many markets saw capital migrating to US capital markets, where it is deeper and provides better valuation.

“There was a need for us to crowd in institutional third-party capital back into our markets, to improve liquidity and give Chinese investors another reason to look at our markets,” he said.

Liquidity is also not just about turnover volume, but also free float ownership concentration, transparency and ease of access, said IDX’s Pardi.

This comes as the Asean region remains financially diverse, with different currencies, regulations, infrastructure and stages of development, he added.

Furthermore, for domestic Chinese investors, China’s capital market is large and attractive. Hence, much of the domestic savings have had no need to look outside China, SET’s Soravis said.

Nevertheless, several Asean countries and regulators have recognised the challenge, and started programmes to boost their local markets, panellists noted.

For example, Singapore’s Equity Market Development Programme has increased investor and institutional participation in the market. Its value unlock initiatives have helped issuers better communicate with investors, while investors understand opportunities.

Malaysia’s capital markets masterplan also involves supporting its small and medium-sized companies and mid-tier companies into the capital markets.

Shahrul noted that Malaysia has a rich electronic manufacturing ecosystem and semiconductors industry, resulting in a pipeline of good IPOs in electronics, healthcare and energy transition.

For Thailand, Soravis noted that the market has lagged global markets, given its old economy counters and lack of avenues (lack of investment opportunities) for foreign investors to enter.

Hence, it is working to increase products on its bourse, which could include Chinese foreign direct investment companies, non-profitable but fast-growing companies in the new economy sector, and tech platform companies.

Soravis said he hopes to build more bridges such as the China-Singapore ETF Connect, which aims to boost market cooperation for exchange-traded funds (ETFs) between China and Singapore.

Meanwhile, Indonesia is looking to make the country easier to access, understand and invest in, while maintaining appropriate safeguards.

“The global capital does not only look for growth, they look for growth that is investable, liquid and accessible,” Pardi said.