Chinese share indices: 24-hour party people
August 18, 2017--Extending index eligibility beyond H shares makes sense
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Source: FT.com
China Codifies Crackdown on 'Irrational' Outbound Investment
August 18, 2017--State Council plans restrictions on property, hotels, sports
Authorities will also ban overseas investment in gambling
China formally laid down new rules on overseas investments, making explicit its de facto campaign against "irrational" acquisitions of assets in industries ranging from real estate to hotels and entertainment.
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Source: Bloomberg
Hong Kong seeks to streamline Chinese indices
August 17, 2017--ICBC could gain Tencent and China Mobile as Hong Kong moves to simplify its China tracking indices, which are complicated by the large number of Chinese share classes.
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Source: FT.com
World's Biggest Pension Fund Wants to Stop Index Trackers Eating the Economy
August 17, 2017--The growth in passive index-tracking threatens to harm investors in the long term
If investors continue to pile their money into passive index-tracking, at some point markets will stop doing their job of allocating resources efficiently in the economy. Perhaps they already have.
The threat is big enough that the world's largest pension fund* is preparing to put more of its money with active managers-who charge more and on average underperform-in an attempt to keep markets functioning properly.
*Japan's Government Pension Investment Fund
Source: Wall Street Journal
JPX Monthly ETF Monthly Report (July 2017)
August 17, 2017--The JPX Monthly ETF Monthly Report (July 2017) is available.
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Source: JPX (Japan Exchange Group)
Steady as she goes: what's driving the Australian economy?
August 15, 2017--Despite sluggish overall growth reported in the National Accounts, a range of more partial indicators suggest the Australian economy is enjoying reasonable-though not robust-growth from a diversified range of sources.
Continued moderate growth and low inflation appear the most likely outcome over the coming year, which would be consistent with steady local interest rates and a focus on income over growth opportunities in the Australian equity market.
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Source: betashares.com.au
ULTUMUS-Global ETF Monitor-Asia-Artificial intelligence and technology are all the rage these days.
August 15, 2017--In Korea, two new ETFs will be listed this week, each of which tracks tech stocks with big visions. Kodex, the ETF issuer run by Korean chaebol Samsung, has launched a robotics and automation ETF (276990).
276990 will synthetically track ROBO Global's "Robotics & Automation Index"....
The second ETF comes from KBStar, the ETF issuing arm of Korea bank, which is launching a "Global 4th Industry Revolution IT ETF" (276650)....
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Source: ULTUMUS-Financial Data Management
IMF Country Report-People's Republic of China: Selected Issues
August 15, 2017--CHINA'S HIGH SAVINGS: DRIVERS, PROSPECTS, AND POLICIES1
China has one of the highest national savings in the world, which are at the heart of its external/internal
imbalances. High savings fuel excessive investment when kept domestically and generate large global
imbalances when they flow abroad.
High national savings today mostly emanate from the household sector. Corporate savings used to be the
main driver in the early 2000s, partly reflecting an undervalued exchange rate, but have now gradually
converged to the global average.
view the IMF Country Report-People's Republic of China: Selected Issues
view China's Economic Outlook in Six Charts
Source: IMF
BetaShares Australian ETF Review-July 2017-ETF industry breaks the $30B barrier
August 15, 2017--The Australian ETF industry once again had a positive month, with net cash inflows taking the industry to a fresh record high as the industry broke $30B for the first time.
Total industry FuM at the month end was $30.1B, which is a growth of 2.3% ($725m) for the month. In a month where the Australian sharemarkets were flat, 100% of the growth came from net inflows rather than asset appreciation.
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Source: betashares.com.au
China Increases U.S. Treasury Holdings by Most in Two Years
August 15, 2017--Nation raised ownership of U.S. government bonds to $1.09 tln
Japan lifted its holdings to $1.12 trillion in March.
China increased its holdings of U.S. Treasuries by the most in two years, a sign that the world's second-biggest economy is stabilizing and stricter capital controls have helped to stem capital flight.
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Source: Bloomberg
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