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Danny Yong by Beverly Chandler, Opalesque London:

Participants at the Opalesque Singapore Roundtable, sponsored by Eurex and Sungard, agreed that while over 50% of global foreign exchange reserves belong to Asian countries, most local investors invest outside the area.

Danny Yong, CIO of Dymon Asia said: "If Asian sovereign wealth funds and family offices were to invest more intra-Asia, it could over time allow the Asian capital markets to be less driven by global investment flows. At present, the bulk of assets managed in Asia are dominated by allocations from the West. As history has shown, when there is a crisis in the US or Europe, there tends to be capital flight from Asia, and this increases the volatility of the markets here. If you look at how Asian stock markets were affected by foreign capital inflows and outflows before and during the global financial crisis, one could argue that Asia was a lot more volatile as a result of the capital flows. With increased intra-Asian investments, it may allow Asian markets to be more stable in the long run.

Given that a lot of the global savings are here in Asia, should we not start financing ourselves incrementally, both through the sovereign wealth funds, as well as through individual savings?"

Yong believes that through ......................

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