With the 11th largest stock market in the Asia-Pacific region, Thailand’s capital market is a key driver of national economic growth. Ongoing market initiatives are designed to help stakeholders and promote long-term growth.
Thailand’s capital market has grown steadily over time. As of mid-2020, the Thai stock market, the Stock Exchange of Thailand (SET), ranks 25th in terms of market capitalization among the stock exchanges around the world and is the 11th largest stock market in the Asia-Pacific region. Both stock and bond markets in Thailand are now 85% and 80% of Thailand GDP, respectively. In terms of liquidity, trading activity in Thailand capital markets (stock, bond, and derivatives) has consistently improved, reaching its peak during the past few years. The stock trading activity by foreign investors in Thailand has also grown steadily, accounting for a large proportion, around 36% to 41%, during the past few years. By helping a large number of businesses raise capital on the primary and secondary markets and enabling both foreign and domestic investors to participate in the growth of those businesses, Thailand’s capital market has been a main driver of national economic growth.
Looking forward, the SET aims to further improve internal operating efficiency for stakeholders through a variety of methods—namely, streamlining processes and regulations to support stakeholders, building a central database for business expansion, expanding products and services, further developing IT infrastructure to reduce costs, integrating ESG (environmental, social, and governance) considerations into the businesses of listed companies, and developing an educational platform to provide online financial knowledge to the general public. The ultimate goal is to help stakeholders achieve long-term sustainable growth.
This article is from "The Emerging Asia Pacific Capital Markets: Challenges and Opportunities," published by CFA Institute Research Foundation.