The overall value of Asian equity trading fell by over US$1 trillion in 2011 but the decline masks modest gains in most markets within the region, with Chinese markets most affected by the drop off in turnover.
According to Reuters Equity Market Share Reporter, total value traded in 2011 across major Asian markets reached US$18.02 trillion, compared to US$19.07 trillion in 2010. However, China’s Shanghai and Shenzhen stock exchanges ended last year on US$7.01 trillion, US$1.7 trillion lower than 2010.
India’s Bombay Stock Exchange and National Stock Exchange also suffered declines, trading US$739.46 billion in 2011, compared to US$1.05 trillion the previous year. The value of Indian equity trading declined in each month throughout 2011 except July, with monthly volumes starting the year at US$74.1 billion and ending December on US$43.2 billion.
A slight decline was also felt in Singapore, with US$203 billion traded in 2011, down US$4 billion on 2010’s figures.
A note from Credit Suisse’s equity research division observed that while the Singapore Exchange’s near-term fortunes would be dictated by securities and derivatives trading volumes – which comprised 63% of the bourse’s revenues for 2011 – future growth would be achieved from its strategy as an Asian regional gateway.
Annual turnover increases were felt across many of the region’s main markets, including Japan, the second-largest Asian market, which rose to US$4.32 trillion in 2011 from US$4.02 trillion the previous year. In its first full year of trading, Chi-X Japan, the proprietary trading system (PTS) established by Chi-X Global, transacted a total of US$70.12 billion last year and ended the year with a market share of 2.22%. Its closest PTS rival SBI Japannext traded US$71.9 billion during 2011, edging just ahead of Chi-X Japan in market share terms with 2.88%.
In Hong Kong, trading grew marginally to US$466.1 billion last year compared to US$465.3 billion in 2010. Australia, which finally permitted alternative trading venues towards the end of the year, beginning with the launch of Chi-X Australia in October, saw trading volumes reach US$1.15 trillion in 2011 from US$962 billion in 2010.