US$2.5 Trillion Funds Flood Developing Country Markets
Monday, 12 November, 2007 | 17:07 WIB

Tempo Interactive, Jakarta: Lim Say Boon, Chief Investment of Strategist Standard Chartered Bank, said that investors’ funds that came from developed countries amounting to US$2.5 trillion have flooded the financial markets of developing countries since the subprime mortgage crisis and world oil price increases.

“The funds have entered the financial markets of China, India and Indonesia,” said Lim during a Wealth Management seminar presentation in Jakarta, Monday (12/11).

The abundant foreign funds, according to him, were caused by investors’ concern over the possibility of an economic recession in developed countries due to the mortgaga crisis in the United States and world oil price increases.

In addition, he continued, the decision of the US central bank (The Fed) to lower interest rates to the level of 4.5 percent made investors in the financial market look for other countries with high growth.

Emerging markets such as China, India and Indonesia, according to Lim, are still probable to continue growing as the transaction graphic is increasing.

“In the meantime, the consumption level is increasing, too,” he said.

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