Research and publications

Assessing the Quality of Asian Stock Market Indices

There has been increasing demand for equity indices in Asia. This is because global investors wish to benefit from the region’s growth, and consequently from its financial markets. As many US- and Europe-based investors do not have the expertise to conduct stock picking in Asia, equity investments are often passive for Asian-oriented portfolios. Therefore, the question of index quality in Asia is an important issue. This study addresses that question by focusing on three aspects: efficiency, concentration and stability.

Author(s):

Narasimhan Padmanaban, Masayoshi Mukai, Lin Tang, Véronique Le Sourd

Summary:

There has been increasing demand for equity indices in Asia. This is because global investors wish to benefit from the region’s growth, and consequently from its financial markets. As many US- and Europe-based investors do not have the expertise to conduct stock picking in Asia, equity investments are often passive for Asian-oriented portfolios. Therefore, the question of index quality in Asia is an important issue. This study addresses that question by focusing on three aspects: efficiency, concentration and stability.

Register to download PDF

Register
Type : EDHEC Publication
Date : 26/02/2013
Keywords :

Indexes and Benchmarking