The Australian Stock Exchange (ASX) merger with the Singapore Stock Exchange (SGX) will firmly integrate Australia into Asian wealth markets, according to a global market research provider.

The ASX has just released the results of a study into its proposed merger, which suggest real benefits for the Australian economy and public.

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Andrew Haslip, Senior Analyst at Datamonitor agreed with the findings. According to him, "The merger will benefit Australian investors from simple retail customers up to institutional investors and high net worth (HNW) clients, while also increasing the allure of Australia as a centre for managing wealth."

The merger between the two exchanges would create the fifth largest securities exchange in the world by market capitalization (approximately US$12.3 billion), the second largest listings venue in Asia, and the largest provider of exchange-traded funds (ETFs), derivative products and real estate investment trusts (REITs) in Asia.

"While still subject to government approval, the proposed merger has great potential for consumers due to the wider range of companies they could easily invest in, across a more diffuse geographic area due to the listing on the SGX of companies from China and the rest of the Asia-Pacific region," said Mr Haslip.

"Australian consumers already have significant interest in the share markets either through their membership in superannuation funds or through direct equities holdings."

Mr Haslip said the merger will also boost Australia as an Asian wealth management and investment centre, resulting in more interest from foreign capital and wealth mangers.

"After the merger, a wealth manager based in Australia would be able to easily (and cheaply) invest in the fast growing economies of the Asia Pacific region due to the large, liquid and diverse nature of the resulting markets."

"As such, the merger has the rare potential to benefit both the financial sector in Australia as well as regular consumers invested either directly or through their superannuation funds," he said.

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