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However, this does not mean that the markets in other Asian countries are small. Malaysia and Taiwan also have sizeable markets but the market capitalization remains well below industrial country levels.
The growth of the Asian equity market has been combined with improved liquidity and breadth. The market liquidity has doubled in relation to GDP since 1990 and the turnover velocity has increased fourfolds. In addition, the breadth of the Asian equity market is the biggest when compared to other emerging markets; however, it is less than when compared to industrial countries.
Within the broader picture of the Asian market is another one. The equity markets in China and Indonesia are still small compared to the size of their domestic economies. In addition, even the market liquidity is quite low. In China, the equity market’s performance has not risen because of the dominance of the poorly performing state-owned companies, which account for nearly half of the total market capitalization. It has been seen that majority of successful Chinese companies prefer to list themselves overseas, especially in Hong Kong SAR. While Indonesia’s equity market is suffering due to lack of transparency, information disclosure policies and weak corporate governance. Other Asian equity markets in countries like Philippines and Hong Kong SAR are dominated by few firms.
The Asian equity market is an important source of corporate finance and it is believed that in 2005, companies tapped the market for nearly $814 billion in the form of new capital through initial and secondary public offerings.
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Before we look into options in equity market, we should first understand what make the options. Equity derivative is a financial instrument whose value is at least partly derived from one or more underlying equity securities. 
