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Paper Tigers
Report

Paper Tigers

Chinese and Indian Capital Markets

Paul Kielstra
EIU, 2014
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Editorial Rating

8

Qualities

  • Comprehensive

Recommendation

The Chinese and Indian economic miracles get plenty of attention, but a look beyond the headline growth reveals their capital markets’ shaky structures. Paul Kielstra of the Economist Intelligence Unit leads this tour of the Asian financial giants, whose real economies have far outpaced their capital markets’ capabilities. His informative report explains why, despite their high savings rates, Chinese and Indian workers are not keen to put those savings into their respective national stock and bond markets. getAbstract recommends his text to investors interested in a promising but financially risky part of the world.

Take-Aways

  • China and India are economic titans, but their financial markets don’t efficiently allocate capital.
  • Both countries exhibit high savings rates but experience low rates of participation in equity and debt markets.
  • In India, investors prefer owning bank accounts and gold to holding company shares. In 2011, 10% of the nation’s household savings were invested in gold.

About the Author

Historian Dr. Paul Kielstra is a contributing editor at the Economist Intelligence Unit.

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