One of the largest economic and financial markets in ASEAN+3, Korea now has a strong corporate bond market. Some of the critical factors contributing to its strength are the set of effective policy changes and robust participation of the domestic players. Korea’s corporate bond market is largely domestic, led by the investments of the financial sector. In the same way, financial sector companies dominate the issuance of corporate bonds in the country. Moving forward, Korea aims to build and strengthen its sustainable bond market.

This research report shows the unique characteristics of the ASEAN+3 corporate bond market, particularly on the trends in corporate bond issuances and investor groups. This shows the overall developmental stages of each corporate bond market in the region, as well as several updates on the changes in the relevant regulations for corporate bonds. In addition, this research touches on the thematic bonds in ASEAN+3.

Hong Kong, China is a renowned financial market in ASEAN+3. This research aims to show two sides of the corporate bond market of Hong Kong, China. First, this shows the specific on the characteristics of the local currency corporate bond market of Hong Kong, China. Second, this research highlights the position of Hong Kong, China for cross border bonds in ASEAN+3. Similar with the other countries in the region, Hong Kong, China is keen on welcoming sustainable bonds in its corporate bond market.

The corporate bond market of the People’s Republic of China (PRC) has marked its significance in the development of corporate bond markets of ASEAN+3. The outstanding corporate bond market size of the PRC is the biggest in the region, with key issuers coming from the banking and the real estate sectors. What is remarkable about the PRC’s corporate bond market is the openness to cross-border transactions, which includes the issuance of panda bonds and dim sum bonds. The PRC is also gearing up for the emergence of new corporate bond products, particularly thematic bonds.

This research presents the trends in cross-border corporate bonds in ASEAN+3 (which is composed of the 10 ASEAN member countries, People’s Republic of China, Japan and Korea). The interregional flow of cross-border corporate bonds denominated in local currencies of ASEAN+3 countries is still in nascent stages, but there are already initiatives to encourage more issuances of cross-border corporate bonds in the region. With this, CGIF has been instrumental in encouraging eligible corporates to explore cross-border bonds for financing.

This research consolidates the key findings from CGIF’s country-level research papers. This shows the unique characteristics of each corporate bond market of ASEAN countries, as well as the differences in terms of their developmental stages.

Viet Nam’s corporate bond market has grown significantly, as marked by the continual issuances of VND-denominated corporate bonds. The changes in regulations related to its bond market also serve as foundations for development in the coming years. Viet Nam is gearing up for better processes in encouraging bond issuances and improving market transparency.

Thailand has a relatively developed corporate bond market. Its investor base is dominated by individual investors, followed by institutional investors such as insurance companies, mutual funds and contractual savings fund. Thailand is open to non-Thai issuers in its market through the promotion of “Baht Bonds”. Other market development in the country includes the promotion of green bonds.