2022-12-10-亚开行-亚洲债券监测——2022年11月（英）_110页_3mb

Summary of the Asia Bond Monitor November 2022

1. Bond Market Developments in Emerging East Asia

• Emerging East Asia's local currency (LCY) bond market grew 2.3% q-o-q to USD22.0 trillion at the end of September 2022, down from 3.1% q-o-q growth in Q2 2022.
• Government bonds (63.6% of the market) outperformed corporate bonds (36.4%) in terms of size and growth.
• Markets diverged: Vietnam and Philippines showed fastest growth, while Korea and China slowed due to domestic economic weaknesses.
• US monetary tightening drove currency depreciation and capital outflows, with emerging East Asian bonds yielding higher than US Treasuries.

2. Sustainability in Bond Markets

• ASEAN+3's sustainable bond market grew modestly (1.7% q-o-q) to USD521.6 billion, lagging behind Europe and North America.
• Sukuk markets flourished in Indonesia and Malaysia, but sustainable bonds remain a minor share (16.9% of global issuance) compared to conventional bonds.
• Diversification increased, with greater use of long-term bonds and Islamic finance tools.

3. Policy and Regulatory Developments

• Countries like Vietnam and The Philippines implemented new bond regulations to improve transparency and sustainability, linking bond proceeds to specific uses.
• Regional initiatives like RCEP aim to integrate financial markets but not yet significantly increased intra-regional financial integration.

Key Implications:

• Vietnam's economy showed remarkable resilience, becoming the fastest-growing major emerging democracy in decades. However, high inflation and reliance on short-term debt remain risks.
• Sustainability-linked bonds offer potential for meeting climate goals but require policy consistency and institutional alignment.

This summary highlights key trends and policy shifts, emphasizing the region’s differential responses to monetary policy tightening, economic disparities, and evolving sustainability frameworks.