Asian markets are about to make a healthy recovery from two years of poor performance and the setback of SARS.
This is according to institutional investors in the region who participated in Greenwich Associates' 2003 report on Asian equity.
The report is a result of interviews with 200 Asian equity investment professionals at institutions based in Hong Kong and Singapore, and finds a marked reversal in attitude from the beginning of last year, with investors entering this year with optimistic expectations of double-digit returns from all major Asian markets.
Survey participants predicted that Taiwan will lead the large Asian markets, with an average rate-of-return expectation of 15.4% for 2004. Hong Kong comes a close second, with more than half of investors interviewed there expecting returns of 10% to 20%; an additional 25% expect up to 10% returns.
"This past year really felt like two years," Greenwich Associates consultant John Feng said in the report. Mr. Feng services Asia from the consulting firm's Greenwich, Conn., headquarters. "The first two quarters were plagued by SARS, and it was in general a very tough environment for both the buy side and the sell side. The second half of the year actually brought healthy rates of return. In some of the smaller markets like Thailand and Indonesia, rates of return were much higher than 30% to 40%."
The report also presents data on compensation and staffing in Asian equity markets, as well as trends in the Australian market.