Regulator's U-turn paves way for dual-class companies to raise funds in Hong Kong in pilot plan
October 27, 2017--Only giant tech firms with investor protection measures will join under a pilot scheme to be launched next year as SFC is no longer opposed to dual-class shareholding
Companies with multiple classes of shares among their shareholders may be allowed to raise capital in Hong Kong by the middle of 2018, as the city's Securities&Futures Commission (SFC) backs away from its position on the "One Share, One Vote" principle, which has been a pillar of the local capital market since the 1980s.
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Source: South China Morning Post
BetaShares-Left in the dirt: What's driving our sharemarket performance?
October 24, 2017--The Australian sharemarket has struggled to match the performance of global peers in recent years. While a number of theories have been put forward to explain our relatively poor returns, this note suggests two factors tend to dominate: trends in export commodity prices and the health of the global technology sector.
On this basis, it seems likely our market could struggle against global peers for some time yet.
Recent Australian relative equity performance
Australian equities have tended to underperform the global benchmark in recent years, though the degree of underperformance does depend on how returns are measured.
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Source: betashares.com.au
Premia Partners debuts with the world's first fundamental multi-factor China A-shares ETFs tracking bedrock and new economy with Caixin Rayliant Smart Beta methodology
October 23, 2017--Premia Partners, the Hong Kong based investment firm that focuses on ETFs and smart beta solutions, announces the launch of two smart beta China equity ETFs designed to provide investors with diversified exposure to the China A-shares markets.
The ETFs track the CSI smart beta indices which employ methodology provided by Caixin Rayliant Smart Beta ("Caixin Rayliant") led by Dr. Jason Hsu, Chairman and CIO of Rayliant Global Investors, and Co-founder and Vice Chairman of Research Affiliates.
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Source: Premia Partners Company Limited
National Bureau of Statistics of China-National Economy Sustained the Momentum of Stable and Sound Development in the First Three Quarters of 2017
October 19, 2017--Since the beginning of this year, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the new concepts of development, adhered to the general working guideline of making progress while maintaining stability, focused on supply-side structural reform, appropriately expanded the aggregate demand, deepened reform and innovation, reinvigorated real economy, guarded against and defused risks, and strengthened guidance on expectations.
As a result, the national economy grew steadily with continuously optimizing structure, rapidly growing new driving forces and remarkably improving quality and efficiency, sustaining the momentum of stable and sound development.
According to the preliminary estimation, the gross domestic product (GDP) of China in the first three quarters of this year was 59,328.8 billion yuan, a year-on-year increase of 6.9 percent at comparable prices, growing at the same speed as that in the first half of this year, or 0.2 percentage point higher than the same period last year.
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Source: National Bureau of Statistics of China
A simple guide to the Chinese Communist Party's 19th congress
October 19, 2017--In case you hadn't heard, something huge is going down in China this week. So huge that the internet has been disrupted, popular TV shows have been cancelled, and Beijing's sky will turn perfectly blue.
What is going on?
It's time again for the National Congress of the Chinese Communist Party (CCP), China's most important political event, held twice every decade. The 19th congress will kick off on Wednesday (Oct. 18), and is expected to last for a week. Around 2,300 party members from across the country will attend the meeting in Beijing to select the party's top leadership for the next five years.
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Source: WEF (World Economic Forum)
Bitcoin gets official blessing in Japan
October 17, 2017--The broader fintech sector is struggling even as cryptocurrencies take off
Entrepreneurs do not often welcome regulation. For Japanese cryptocurrency start-ups, however, a framework put in place by the country's financial authorities has been a boon.
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Source: FT.com
BetaShares- Australian ETF Review-September 2017
September 17, 2017--Another month, another billion dollars...
The Australian ETF industry rose to a fresh record high in September after another strong period of growth. Total industry FuM at the month end was $32B, which represented growth of 3.5%, or $1076m.
September was the 6th largest month of AuM growth for the industry of all time. While asset appreciation aided this rise, the majority (65%) of the month's growth came from net new money. For the second time in a row, global equities exposures received the largest flows, particularly via broad market developed world products.
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Source: betashares.com.au
JPX-ETF Monthly Report-September 2017
October 16, 2017--The JPX-ETF Monthly Report-September 2017 is now available.
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Source: JPX (Japan Exchange Group)
ETFGI reports assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) have increased 19.1% in 2017 to reach US$154 billion at the end of September 2017
October 13, 2017--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs/ETPs listed in Asia Pacific (ex-Japan) have increased 19.1% in the first 9 months of the year to reach US$154 billion at the end of September 2017, according to ETFGI's September 2017 preliminary Asia Pacific (ex-Japan) ETF and ETP industry insights report an annual paid for research subscription service.
The Asia Pacific (ex-Japan) ETF/ETP industry had 1,153 ETFs/ETPs, with 1,303 listings, assets of US$154 Bn, from 122 providers listed on 17 exchanges in 14 countries.
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Source: ETFGI
DB-Synthetic Equity & Index Strategy-ETF Monthly Asia-Assets Surpass $400bn
October 12, 2017--Asia listed ETP Monthly Highlights (Assets, Flows & Launches):
Assets & Flows: ETP AUM up by 1.5% ($5.8bn) on MoM basis and ended
the month at record high level of $403.7bn. September witnessed inflows
of +$3.1bn (YTD +$45.8bn).
19 new launches: 14 equity, 2 fixed income, 2 currency and 1 commodity.
Launch of many non traditional products including smart beta (ESG, low
vol, high dividend yield) and international exposures (global, US).
Investment Themes for the Month
Equities (+$6bn inflow):
Japan focused ETFs attracted inflows of +$5.6bn. TOPIX and Nikkei were main beneficiaries while leveraged long ETFs saw material outflows. Notable inflows into inverse, fundamental and dividend ETFs too.
Korea focused ETF net flows totaled $308mn. Long only exposure to KOSPI 200 collected inflows which was partly offset by leveraged long products. Dividend ETFs also saw inflows.
Within China focused ETFs, net flows were slightly down (-$87mn). We observed inflows into quality large cap China A shares (SSE 50) ETFs but outflows from CSI 300 and FTSE China A50. Leveraged long ETFs benefitted from inflows.
Taiwan focused ETFs net monthly flow for the month was +$261mn, contributed by inverse and dividend ETFs. Hong Kong ETFs had notable redemptions (-$420mn), mostly ETFs tracking HSI. Fixed Income (-$2.7bn outflow): China money market ETF segment saw outflows of -$2.7bn. In Korea, there were outflows from Korean money market ETFs (- $186mn) and inflows into Korean investment grade (+118mn) ETFs. Commodity (-$222mn outflow): Outflow of -$121mn from leveraged long ETF tracking crude oil prices.
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Source: Deutsche Bank Research-Asia-Synthetic Equity & Index Strategy
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