Thailand
The kingdom of Thailand leads the way on the Asian bond market initiative, with prime minister Thaksin Shinawatra vowing to make Asia the master of its own destiny.
Thaksin sees himself as the new hard man of the region, having taken up the mantle from Malaysia's retired prime minister Mahathir Mohamad. Thaksin is also out to boost Thailand's own image in south-east Asia and beyond. For example, he effectively closed down Bangkok last month for the Asia-Pacific Economic Cooperation meeting - in a bid to show that his country was the safest, most efficient haven in the region.
In September, the finance ministry announced the abolition of the 15% withholding tax, and at Apec Thaksin called on other countries to follow suit.
The Bank of Thailand is probably the most active central bank in the region, having established the first Asian bond fund in June.
Thailand's financial disintegration following the devaluation of the baht on July 2 1997 sullied the previously vaunted reputation of the institution. The bank is using its high profile to reposition itself as the guardian of the nation. It has proposed an Asian financial institute - and Bangkok is surely the prime contender to host it. Thailand is chairing the East Asia Pacific Central Banks' working group on securitized debt instruments.
Hong Kong
Hong Kong is Thailand's closest ally in bond market initiatives. Hong Kong Monetary Authority chairman Joseph Yam first proposed the initial Asian bond fund idea to the Bank of Thailand. HKMA's deputy chief executive, Norman Chan, now heads the EMEAP financial markets working group and is seen as a dynamic representative of the ABF concept.
The HKMA has asked a number of asset managers to propose ideas on the shape of ABF2.
Malaysia
Former prime minister Mahathir is in some ways the inspiration for many of the regionalist ideas. Malaysia, however, has stepped out of the limelight on the Asian reserves/bond market subject - due largely to a political concentration on the succession to Mahathir.
Malaysia would not like to see neighbouring Thailand grab all the glory on the initiative, and doesn't want Bangkok to secure the seat of an Asian financial institute. But Malaysia approves of a pan-Asian bond market - if only to nullify Singapore's attempt at making itself a regional bond market centre.
Malaysia is chairing the EMEAP working group on foreign exchange transactions and settlement systems.
Singapore
The island state is very much in the background on the whole Asian bond market concept.
Following the Asian crisis, the Monetary Authority of Singapore (MAS) chief and deputy prime minister Lee Hsieng Loong launched a far-reaching attempt to conjure up a Singapore dollar bond market. That included issuing benchmark bonds, liberalizing exchange controls and building up the investor base. The market has not developed massively, though, largely because of a lack of issuers.
Singapore is making the right noises about the Asian bond market initiative, but bankers believe it is worried that its success could stymie Singapore's attempts to make its own bond market a truly international one.
Along with Japan, Singapore is chairing the EMEAP working group on local and regional rating agencies.
Japan
Anything that makes Asia more united and harmonizes regulatory systems will be welcomed by Japan. This is mainly because of its vast and constantly growing trade in the region.
Japanese investors' aversion to Asian currency risk, however, has held back any involvement in Asian domestic debt markets. Japan would love a united Asian currency - especially if it was the yen or could be easily linked to it.
On a political level, a uniform currency and/or EU-type arrangement is the long-term goal. Japan has already proposed an Asian monetary zone - an idea that was shot down by the US and China.
Some Japanese officials are against an Asian financial institute; they would prefer the Asian Development Bank - which it largely dominates - to steer the course of Asian financial development.
China
The People's Republic holds a crucial position in pan-Asian financial market initiatives. Trade with China is perhaps the main engine behind Asia's recovery from the 1997-98 crisis. In addition, right now investors would love to be able to execute a renminbi trade but cannot.
China is preoccupied with how and when to move from its fixed-rate regime; interest in its own bond market and its integration into the rest of Asia will follow on from this.
"As the current account will be more and more liberalized we will see China's domestic bond market development and more active participation in the Asian retail bank market development process," says Jiayi Zou at the ministry of finance.
China is chairing the EMEAP working group on bonds issued by multilateral development agencies. The ADB has talked of issuing renminbi bonds, among its other Asian local currency issues.
Korea
Issuers and investors would love to be allowed into Korea's won bond market - the biggest corporate market in Asia after Japan. Korea is being courted by Thailand and Hong Kong to remove its barriers as one of the first-wave countries. It is chairing the EMEA working group on credit guarantees.
India
Although India is not a member of EMEAP, it will contribute to ABF2. It is important because the government is in perennial deficit and now that it is open to foreign direct investment it will integrate more within Asia.
Thailand's prime minister Thaksin wants India involved, as part of his efforts to facilitate Thailand-India trade. India could leapfrog into a first-wave candidate.
Indonesia and Philippines
These countries are likely to be in the second phase of harmonizing their bond markets.
Australia
As a result of its successful development of a corporate bond market, Australia has all the technical know-how to assist in the development of regional financial markets. But it is regarded as George W Bush's Trojan Horse by suspicious Asian politicians.