Equity returns and liberalization/integration

Could anybody clarify what the material means when it says that liberalization results in higher stock prices and lower stock returns? Is it implying that after stock prices increase, there is less likelihood of upward movement and therefore expected returns decrease?

Higher stock prices because of increased demand for the stocks with inflow of external funds. Lower returns because with the availability of the new funds the cost of capital for these markets will fall, which will bring down expected returns.