US crisis may delay market reforms in Asia

WASHINGTON: The American financial crisis is expected to delay capital market reforms in China and other developing Asian economies stunned by the colossal damage unleashed by complex financial contracts on the United States, experts say. Flush with cash reserves, many developing Asian nations have been prodded by Western financial institutions to deepen their capital markets by introducing sophisticated financial derivatives to hedge against various risks.

But as derivatives tied to housing mortgages-backed securities were blamed for the American turmoil whose losses could reach one trillion dollars, Asian economies would tread more cautiously in adopting complex financial trading contracts, the experts said.