This paper attempts to evaluate the degree of one-way and two-way links among intraregional financial markets in East Asia. Using data gathered from the IMF’s Coordinated Portfolio Investment Survey (CPIS), this paper finds that the level of bilateral holdings of financial assets between Japan and other East Asian countries is smaller than what is expected by the financial gravity model. This paper also finds that the extent of two-way holdings of financial assets between Japan and other East Asian countries is also smaller than that between Japan and other non-East Asian pairs. As a comparison, it is also found that the level of bilateral trade between Japan and other East Asian countries is greater that what is expected by the gravity model. Our results are theory-based and are robust to a number of different empirical specifications. Thus, we have evidence that while intraregional trade in goods in East Asia is already quite high and comparable to that of European Union, East Asia’s intraregional trade in financial assets is very premature. This may suggest why most of East Asian economies have been heavily afflicted by the recent global financial crisis originated in the U.S.