《International Financial Management》课程教学课件（PPT讲稿）Chapter 10 International Equity Market

International EquityMarketsChapter Ten

ChapterObjectives: This chapter discusses both the primary andsecondary equity markets throughout the world

❖Chapter Objectives: ❖This chapter discusses both the primary and secondary equity markets throughout the world

ChapterOutlineA StatisticalPerspectiveMarket Structure, Trading Practices, andCostsInternational Equity Market BenchmarksWorld Equity Market Benchmark SharesTrading in International EquitiesFactors Affecting International EquityReturns

3 Chapter Outline ❖A Statistical Perspective ❖Market Structure, Trading Practices, and Costs ❖International Equity Market Benchmarks ❖World Equity Market Benchmark Shares ❖Trading in International Equities ❖Factors Affecting International Equity Returns

AStatisticalPerspectiveMarket Capitalization of DevelopedCountriesMarket Capitalization of DevelopingCountriesMeasures of LiquidityMeasures of Market Concentration

A Statistical Perspective ❖Market Capitalization of Developed Countries ❖Market Capitalization of Developing Countries ❖Measures of Liquidity ❖Measures of Market Concentration

MarketCapitalizationofDevelopedanddevelopingCountriesAlmost 90% of the total market capitalization of theworld' s equity markets is accounted for by themarket capitalization of the developed world.*The other 10% is accounted for by the marketcapitalization of developing countries in“emerging markets”Recently the growth rates in these emergingmarkets have been strong, but with more volatilitythan we have here at home

Market Capitalization of Developed and developing Countries ❖Almost 90% of the total market capitalization of the world’s equity markets is accounted for by the market capitalization of the developed world. ❖The other 10% is accounted for by the market capitalization of developing countries in “emerging markets”. ❖Recently the growth rates in these emerging markets have been strong, but with more volatility than we have here at home

201020112012Exchange Name20052006200720082009348352409525239398234454Mexican ExchangeNASDAQOMX360338654014224932393889384545821331015421156519209118381339414086NYSEEuronext(US)1179618041096129868412621454138711981Australian SE13292305271122581055171526542832Hong Kong Exchanges2122964184147138272215202JapanExchangeGroup -Osak45734614433131163307382833253479Japan Exchange Group- TokyNA9389NA164121107NAJasdaq718834112347183410929961179Korea ExchangeNational Stock Exchange5167741660600122515979851234India45472436NA40NANANewZealand Exchange52406810386157165229Philippine SE91814252357Shanghai SE28636942705271625471162287843531055Shenzhen SE86813111150539265257384481647598765Singapore Exchange476664357595659818635735Taiwan SE Corp.ne Stock Exchangeof124140197103177278268Thailand91NA93139868449Egyptian Exchange3058378138461868345436133266London SE

Exchange Name 2005 2006 2007 2008 2009 2010 2011 2012 Mexican Exchange 239 348 398 234 352 454 409 525 NASDAQ OMX 3603 3865 4014 2249 3239 3889 3845 4582 NYSE Euronext (US) 13310 1 15421 15651 9209 11838 13394 11796 14086 Australian SE 804 1096 1298 684 1262 1454 11981 1387 Hong Kong Exchanges 1055 1715 2654 1329 2305 2711 2258 2832 Japan Exchange Group - Osaka 2964 184 212 147 138 272 215 202 Japan Exchange Group - Tokyo 4573 4614 4331 3116 3307 3828 3325 3479 Jasdaq 164 NA 121 93 89 107 NA NA Korea Exchange 718 834 1123 471 834 1092 996 1179 National Stock Exchange India 516 774 1660 600 1225 1597 985 1234 New Zealand Exchange 40 45 47 24 36 NA NA NA Philippine SE 40 68 103 52 86 157 165 229 Shanghai SE 286 918 3694 1425 2705 2716 2357 2547 Shenzhen SE 116 228 784 353 868 1311 1055 1150 Singapore Exchange 257 384 539 265 481 647 598 765 Taiwan SE Corp. 476 595 664 357 659 818 635 735 The Stock Exchange of Thailand 124 140 197 103 177 278 268 390 Egyptian Exchange NA 93 139 86 91 84 49 59 London SE 3058 3781 3846 1868 3454 3613 3266 3396

Bricsvs the US:MarketCapitalization/GDP500450400350300250200150100500200620072008200920102011ChinaRussian FederationBrazil*SouthAfrica-India+United States2013BRICSDURBANSOUTHAFRICA

Brics vs the US: Market Capitalization/GDP 0 50 100 150 200 250 300 350 400 450 500 2006 2007 2008 2009 2010 2011 Russian Federation China Brazil South Africa India United States

MeasuresofLiquidityThe equity markets of the developed worldtend to be much more liquid thanemerging markets.Liquidity refers to how quickly an asset can besold without a major price concession.So, while investments in emergingmarkets may be profitable, the focusshould be on the long term

Measures of Liquidity ❖The equity markets of the developed world tend to be much more liquid than emerging markets. ● Liquidity refers to how quickly an asset can be sold without a major price concession. ❖So, while investments in emerging markets may be profitable, the focus should be on the long term

200620072008200920102011Country NameCanada81.1184.6692.4071.1174.75111.0578.8584.36France119.63131.50153.1875.26173.95179.68193.27107.16103.04Germany134.5160.8464.0427.1171.2867.7046.50GreeceHong Kong SAR,50.8489.11130.54132.73China160.12157.59Iceland98.13127.0466.4511.989.6228.32Ireland57.6088.8938.4746.6052.8845.30Italy83.96169.75149.73220.40109.70236.78Japan132.15141.55153.23127.08114.49108.91Korea, Rep.172.54201.55181.18237.62168.94195.1444.7446.8788.2739.4934.7239.60NewZealand90.82Norway148.70147.81152.38140.3188.6562.1974.81122.01101.56102.8082.88SingaporeSpain189.69177.72110.25128.87169.12142.58137.93United Kingdom123.81269.82227.20146.39101.86187.62182.81216.46404.07348.58189.06UnitedStatesSource:world bank

Country Name 2006 2007 2008 2009 2010 2011 Canada 81.11 84.66 111.05 92.40 71.11 74.75 France 119.63 131.50 153.18 78.85 75.26 84.36 Germany 173.95 179.68 193.27 107.16 103.04 134.51 Greece 60.84 64.04 27.11 71.28 67.70 46.50 Hong Kong SAR, China 50.84 89.11 130.54 132.73 160.12 157.59 Iceland 98.13 127.04 66.45 11.98 9.62 28.32 Ireland 57.60 88.89 38.47 46.60 52.88 45.30 Italy 149.73 220.40 83.96 109.70 169.75 236.78 Japan 132.15 141.55 153.23 127.08 114.49 108.91 Korea, Rep. 172.54 201.55 181.18 237.62 168.94 195.14 New Zealand 44.74 46.87 88.27 39.49 34.72 39.60 Norway 148.70 147.81 152.38 140.31 90.82 88.65 Singapore 62.19 122.01 101.56 102.80 82.88 74.81 Spain 169.12 189.69 177.72 142.58 110.25 128.87 United Kingdom 123.81 269.82 227.20 146.39 101.86 137.93 United States 182.81 216.46 404.07 348.58 189.06 187.62 Source: world bank

Brics vs the US: Liquidity450.00400.00China350.00India300.00Russian Federation250.00SouthAfrica200.00BrazilUnited States150.00100.0050.000.00200620072008200920102011BRICSDURBANSOUTHAFRICA

Brics vs the US: Liquidity 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 2006 2007 2008 2009 2010 2011 China India Russian Federation South Africa Brazil United States