It includes business houses, international investors, and multinational corporations. ... • Individual investors who deal in the market for transferring their remittances from one country to another. They may also deal in the market for investing their money in foreign securities. ...
Bonds also offer investors an alternative to bank deposits with prospects of capital appreciation at lower risks than equities. ... Demand constraints On the demand side, the majority of retail investor is risk and yield craving. ... Also, the implementation of the Mandatory Provident Fund Scheme (MPFS) is expected to provide a powerful boost to the fund management industry and related services which are major investors in Hong Kong's debt market. ... Demand side Stock and property market slumps after 1997 turned investors' attention to low risk vehicles such as retail bonds and p...
If we import financial assets, the capital account becomes negative (-) For example if a Pakistani firm buys land in Nigeria to set up a factory or buys some stock in a Australian telecom company, or if a Pakistani bank finances the establishment of a plant in U.K all these transactions use up & exhaust the supply of foreign currencies. ... The negative official reserves represent the addition to stock of foreign currencies. ...
