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
IMF-Regional Economic Outlook: Asia Pacific, October 2017: Making the Most of the Upswing
October 11, 2017--The pickup in growth in Asia anticipated in the April 2017 Regional Economic Outlook: Asia and Pacific remains broadly on track, with stronger-than-expected growth in China, Japan, Korea, and Association of Southeast Asian Nations economies helping to compensate for the weaker outlook in Australia and India.
Regional output is projected to grow by 5.6 percent in 2017 and 5.5 percent in 2018, 0.1 percentage point higher than expected in April, driven by strong consumption and investment. Capital inflows to the region continued to be sizable in the first half of 2017, and financial conditions are expected to remain supportive. Inflation has been weaker than projected, partly on account of lower commodity prices, and projections have been revised downward in most countries. The region is thus currently in a favorable position, but how long this will last is uncertain.
view the IMF Regional Economic Outlook: Asia Pacific, October 2017: Making the Most of the Upswing
Source: IMF
China to sell first dollar bond in 13 years in Hong Kong to set benchmark for Chinese issuers
October 11, 2017--They will comprise US$1 billion in five-year, and US$1 billion in 10-year notes.
China's Ministry of Finance has revealed plans to sell US$2 billion worth of dollar-denominated sovereign bonds in Hong Kong, its first dollar bond offering since October 2004, that will set a bellwether issue for other Chinese issuers amid a red-hot Asian corporate dollar bond market.
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Source: South China Morning Post
BetaShares-ETF Basics: where are my ETF assets?
October 10, 2017--With the Australian ETF industry recently hitting a record $31B in assets, made up mostly of net new money rather than due to an increase in market value, we are now starting to see a new wave of savvy investors adopting ETFs as core building blocks in their portfolios.
For these new investors, or just as a refresher for our ETF veterans, here's what you should know about who actually owns the assets of your ETF and what happens to your ETF if a Fund Manager ceases business.
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Source: betashares.com.au
Singapore Diamond Investment Exchange to list Diamond Bullion
October 10, 2017-- A new investment-grade diamond product will enhance the trading and liquidity of diamonds as an asset class
Exclusively listed on the Singapore Diamond Investment Exchange ("SDiX"), the world's first and only electronic exchange for trading investment-grade diamonds.
Issued by The Singapore Diamond Mint Company, the Diamond Bullion is a portable, credit card-sized package of investment-grade polished diamonds sourced at wholesale prices on SDiX and issued in standard denominations; a fully fungible product that can be exchange-traded for instant price transparency and liquidity
Proprietary technology ensures diamonds authenticity, product security and traceability via a mobile app that also enables investors to trade their Diamond Bullions on SDiX globally.
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Source: Singapore Diamond Investment Exchange
World Bank-South Asia Loses Growth Lead, Can Regain through Action
October 8, 2017--Countries should address growth constraints with policies and reforms
After leading global growth for two years, South Asia has fallen to second place, after East Asia and the Pacific.
The region's slowdown is due to both temporary shocks and longer-term challenges. Regional economic growth is expected to slow to 6.9 percent in 2017 from 7.5 percent in 2016, but growth could rebound to 7.1 percent in 2018 with the right mix of policies and reforms.
view the World Bank report-South Asia Economic Focus (SAEF) Growth out of the Blue
Source: World Bank
WEF-Incredible India 2.0-India's $20 Billion Tourism Opportunity
October 6, 2017--Following the launch of the 2017 edition of the Travel and Tourism Competitiveness Report, where India was ranked one of the most improved nations; leaders from the Indian public and private sector decided to carry out an in-depth analysis of their travel and tourism industry.
The Incredible India 2.0 Report, which highlights the results of this initiative, addresses how India should enhance its value proposition and create an enabling environment for the country's travel and tourism industry.
view the World Economic Forum report-Incredible India 2.0 India's $20 Billion
Tourism Opportunity
Source: WEF (World Economic Forum)
SGX commodities head: China must stop meddling with prices
October 6, 2017--Singapore Exchange's Chin says internationalisation will necessitate new products and change pricing
In late September, the China Securities Regulatory Commission (CSRC)-the country's capital markets regulator-announced in the state-owned China Securities Journal that it planned to accelerate the opening of China's domestic futures markets for overseas players and integrate more with the international financial community.
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Source: Risk.net
Philippines' medium-term outlook remains positive: World Bank report
October 5, 2017--The latest economic update also cites increasing risks to growth and the need for strong policy commitment and consistency.
The Philippine economy is projected to continue its strong growth path in the next two years, riding on improved global demand for Philippine exports, robust domestic consumption, and expected higher government investments in infrastructure. In the long term, unlocking the potential of Mindanao is key to reducing poverty and achieving more inclusive growth in the country.
view the Philippines economic update : preserving consistency and policy commitment report
Source: World Bank
Better Global Prospects Yield Favorable Outlook for Developing East Asia Pacific
October 4, 2017--Projected growth of 6.4 percent provides more space to address longer-term challenges
Improved global growth prospects and continued strong domestic demand underpin a positive outlook for the developing economies of East Asia and the Pacific, says the latest World Bank report on the region.
Stronger growth in advanced economies, a moderate recovery in commodity prices, and a recovery in global trade growth, are the favorable external factors that will support the economies of developing East Asia and Pacific to expand by 6.4 percent for 2017.
view the World Bank East Asia and Pacific Economic Update, October 2017: Balancing Act
Source: World Bank
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