This study adopts a public policy perspective in its examination of the way capital market intermediaries fund their market operations in eight of the most dynamic countries of East and Southeast Asia: Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. Concerns about the ability of securities firms to fund themselves came into prominence in the world's major financial markets during the 1980s. It is striking that similar concerns had not surfaced about the Asian capital markets, particularly given the weakness of their money markets. As the forces limiting demand for funds change in the future, the financial systems examined will encounter problems in responding to the new demands for liquidity.