2006年-世界发展银行全球_Development_of_Capital_Markets_and_Institutional_Investors_in_Russia___Recent_Achievements_and_Policy_Challenges_Ahead_156页_1mb

Summary of Development of Capital Markets and Institutional Investors in Russia: Recent Achievements and Policy Challenges Ahead

Core Content

This report provides an analysis of the development of capital markets and institutional investors in Russia, highlighting recent achievements and identifying key policy challenges for future growth. It is authored by Michel Noel, Zeynep Kantur, Evgeny Krasnov, and Sue Rutledge, and is published by the World Bank in 2006.

Main Points

Capital Markets Development

• Economic Growth and Stability: After the 1998 crisis, Russia experienced rapid economic growth and macroeconomic stability, with an average annual GDP growth of 6% and inflation decreasing from 11–12% in 2003–2005 to more manageable levels.
• Monetization of the Economy: The M2/GDP ratio increased from 19% in 1995 to 31.6% in 2004, and slightly declined to 27.9% in 2005.
• Banking Sector Growth: Banking assets as a share of GDP grew from 32.9% in 2000 to 45% in 2005, but the sector remains highly concentrated in Moscow.

Government Bond Market (OFZ)

• Slow Re-emergence: Government bond issuance was limited to refinancing and restructuring, resulting in limited growth of OFZs in circulation.
• Liquidity and Benchmarking: OFZs are mostly held by state-related institutions, leading to low liquidity and a lack of recognition as a market benchmark.
• Key Impediments: High concentration in buy-and-hold portfolios, absence of a primary dealer system, and restrictions on non-resident investment.
• Policy Recommendations: Implement a primary dealer system, prepare for increased demand from non-residents, and improve the placement schedule and benchmark issues.

Sub-Sovereign Bond Market

• Vigorous Growth: The sub-sovereign bond market, particularly the Moscow bond, has become a significant benchmark.
• Key Impediments: Budget deficits and debt exposure limits for Subjects of the Federation (SFs), lack of clear procedures for intervention in case of debt default, and related party borrowing.
• Policy Recommendations: Enforce prudential limits, include past due payments in debt calculations, and adopt a law on regional and municipal bankruptcy.

Corporate Bond Market

• Significant Expansion: The corporate bond market grew from Rub39 billion in 2000 to Rub481 billion in 2005, with over 310 bonds issued by 220 companies.
• Liquidity and Diversification: Corporate bonds are the most liquid and have the most diversified investor base.
• Key Impediments: Market risk, limited disclosure, and governance issues.
• Policy Recommendations: Improve disclosure, establish a realistic calendar for new listing rules, and enforce governance code criteria.

Equity Market

• Rapid Capitalization: Equity market capitalization reached over US$500 billion by 2005, equivalent to about 70% of GDP.
• Concentration and Competition: The market is highly concentrated, with most trading volume from top 5–10 issuers, and faces competition from offshore markets.
• Key Impediments: Lack of transparency, high transaction costs, and limited participation by domestic investors.
• Policy Recommendations: Improve disclosure, adopt IAS, enforce governance code, and allow foreign trading through RDRs.

Institutional Investors

• Growth and Dominance: Institutional investors have grown significantly, but the sector is dominated by large corporations and tax avoidance schemes.
• Key Impediments: Limited legal protection, poor governance, and lack of transparency in the investment fund and pension fund sectors.
• Policy Recommendations: Strengthen enforcement and investigative powers, establish liability for natural persons, and improve independence between financial conglomerates and investment funds.

Key Policy Challenges

• Legal and Regulatory Gaps: The legal framework for securities markets is incomplete and fragmented, lacking clear regulations for derivatives, insider trading, and securitization.
• Market Infrastructure Deficiencies: High fragmentation, lack of RTGS, low transparency, and high costs hinder market development.
• Liquidity Constraints: The government bond market suffers from limited liquidity and poor benchmarking, while the equity and corporate bond markets face similar issues.
• Institutional Investor Oversight: The investment fund and pension fund sectors need stronger regulation, supervision, and transparency to function effectively.

Conclusion

The Russian capital markets have made progress since the 1998 crisis, but significant challenges remain in legal, regulatory, and infrastructure domains. Institutional investors have grown but are still influenced by corporate interests and tax avoidance. The report outlines a series of policy recommendations to enhance market efficiency, transparency, and investor protection.