The 4 Asian Dragons

We used to have The Four Asian Dragons consisting of Hong Kong, Singapore, South Korea, and Taiwan. Being able to achieve high grow rates (in excess of 7 percent a year) and rapid industrialization between the early 1960s and 190s, by the 21st century, all four have developed into advanced and high-income economies, specializing in areas of competitive advantage. For example, Hong Kong and Singapore have become World Leading International Financial Centers, whereas South Korea and Taiwan are world leaders in manufacturing information technology. Their success stories have become a role models for many developing countries.

The BRIC Economies 

The BRIC Economies consisting of Brazil, Russia, India, and China, introduced by Jim’ONeill, the chairman of Goldman Sachs Asset Management in year 2001. These Big 4 are said to shift the global economic power away from the developed G7 economies towards the developing world.  It is estimated that BRIC economies will overtake G7 economies by 2027 and these economies account for 20 percent of the world economic output, and rising. That’s up four fold in the last decade. Despite the growth, problems in the core economies had made the post 2008 world a difficult one for the Big 4 emerging markets. The BRIC Economies today are slowing down.

The 4 Southeast Asian Tigers

The 4 Southeast Asian Tigers/The Tiger Cubs Economy are currently consisting of Malaysia, Indonesia, Philippines, and Thailand, are said to be the next 4 Asian Dragons. Trend Traders Network today would like to inform all the investor/trader to be prepared to face the next 3 years of super bull run in these regions. The prospect of linking all the stock exchanges of Southeast Asia called the ASEAN TRADING LINK will have an opportunity to serve population of over 600 million, promising ample liquidity that will promote economic growth within a region that already is among the fastest growing in the world.

A collaborative effort among seven exchanges from six countries, the concept gained fresh impetus with news of the launch in June 2012 of a common electronic trading link between the Singapore Exchange and Bursa Malaysia, two of the region’s most vibrant and liquid stockmarkets. The third bourse, the Stock Exchange of Thailand, will be connected in August.

These three exchanges with over 2,000 listed counters serve as the cornerstone for the Asean Trading Link which may eventually also connect the exchanges of Hanoi and Ho Chi Minh City in Vietnam, and of Indonesia and the Philippines with a combined total of over 3,600 listed companies and a market capitalisation of approximately US$1.8 trillion currently.

A truly unified regional trading link is compelling. Seamless capital flows among seven exchanges will have spillover economic benefits to lesser developed Asean members.

The link will also promote Asean as a distinct sub-region for asset allocation by international fund managers. And finally, capital flows between Asean and other international financial centres will also increase exponentially.

Truth? or Myth?

The 4 Southeast Asian Tigers Stock Market Performance

Let’s enjoy this profitable bull run for the next 3 years!