Emergent new finance: hedge funds and private equity funds in East Asia

Abstract

ABSTRACTHedge funds and private equity funds are two of the most discussed features of contemporary global finance. This article explores the extent to which these new financial forms have arisen outside of the US and a small number of other advanced financial markets. There has been greater experimentation with global finance in emerging markets than is often acknowledged and domestic resistance to Anglo-Saxon business processes has not derailed the spread of new finance across the Asian region. The rise of these new financial industries, with the notable exception of Japan, would have been impossible without the commitment of one key domestic actor. Asian institutional investors, especially pension funds, have served as crucial financiers to hedge funds and private equity groups. The article concludes with caution concerning whether these new financial actors are set to capture significant global market share.