Bank of Japan's ETF love affair
August 14, 2017--The record volume of exchange traded funds bought by the Bank of Japan is facing scrutiny by analysts worried about the long-term effects.
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Source: FT.com
DB Research-Asia-Pacific-Synthetic Equity & Index Strategy-Asia Monthly ETF Insights-$5.3bn Inflow in July
August 14, 2017--Data in this report is as of 31st July 2017
Asia listed ETP Monthly Highlights (Assets & Flows):
Assets: ETP AUM up by 3% ($11.2bn) on MoM basis and ended the
month at $385.3bn.
Flows: July witnessed an impressive inflow of +$5.3bn (YTD +$32.4n).
New Product Launches-13 new products including many smart beta ETFs
Asia-Pac ETP market recorded 13 new launches which include 12 equity and 1
fixed income ETFs.
New launches were dominated by smart beta ETFs; value,
momentum, quality, dividend and low vol strategies with exposures mainly to
Korea.
Investment Themes for the Month
Equity ETFs registered +$2.9bn inflow in July (+$2.4bn in June). Primary contributors were Japan focused ETFs registering inflows of +$3.8bn.
South Korea focused Equity ETFs were also beneficiaries in July (+ $345mn) while China (-$1.1bn), Taiwan (-$464mn) and Hong Kong (- $300mn) Equity ETFs saw redemptions.
Fixed income ETFs recorded inflows of +$2.6bn driven by China money market ETFs (+$2.3bn).
Non Asia listed Equity ETFs with investment focus in the Asia-Pacific region saw outflow of -$470mn, primarily from China (-$645mn) and Japan (-$544mn) focused ETFs.
Turnover: Floor activity stood above $150bn, although down by 15.7% in July The total turnover activity into Asian ETPs was down by 15.7% ($158.3bn) compared to the previous month’s total ($187.9bn).
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Source: Deutsche Bank Research-Asia-Synthetic Equity & Index Strategy
China H-Shares Tumble in Hong Kong
August 10, 2017--Chinese stocks listed in Hong Kong were crushed in Thursday trading as investors took profit on a recent bull run amid simmering tensions on the Korean peninsula.
The Hang Seng China Enterprises index, known as the H-shares gauge, was down almost 2% by lunchtime.
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Source: Nasdaq.com
PBoC strengthens renminbi trading band midpoint past Rmb6.7
August 9, 2017--China's central bank strengthened the trading band for the renminbi by the most in more than two months on Thursday, pushing its midpoint below Rmb6.7 per dollar for the first time in over ten months.
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Source: FT.com
IMF Staff Completes 2017 Article IV Mission to Philippines
August 8, 2017--The economic performance of the Philippines continues to be very strong, featuring robust growth combined with low inflation.
Growth is projected to remain close to potential at 6.6 percent in 2017 and 6.8 percent in the medium term.
IMF staff team supports the authorities' plans to raise infrastructure and social spending while avoiding overheating and preserving investor confidence.
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Source: IMF
ULTUMUS-Global ETF Monitor--iShares lists 2 ETFs in Japan
August 8, 2017--Asia
iShares will be listing two new currency hedged corporate bond ETFs into Japan at the end of August. 1496 will track highly liquid investment grade bonds of giant global businesses based in developed countries.
It will track a yen hedged version of the Markit iBoxx USD Liquid Investment Grade Index...
1497 will track higher yielding bonds of transnational companies that "have an average rating of sub-investment grade", while also hedging with the yen....
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Source: ULTUMUS-Financial Data Management
People's Republic of China: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the People's Republic of China
August 8, 2017--Summary:
Policy support, strengthening external demand, and supply-side reforms have helped maintain strong growth which, along with tighter enforcement of capital flow management measures, has also reduced exchange rate pressure.
Regulators have recently focused on addressing financial sector risks, resulting in tightening financial conditions. The five-yearly Communist Party Congress is scheduled for the fall.
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Source: IMF
Harvest Fund Management selects FTSE China A50 Index for ETF listing in Shanghai
August 7, 2017-- First mainland China ETF tracking FTSE Russell index
Harvest Fund Management, one of China's largest fund houses, lists first FTSE China A50 Index ETF on Shanghai Stock Exchange
Reinforces FTSE Russell's leading position in China-focused benchmarks
FTSE Russell announces the licensing of the FTSE China A50 Index to Harvest Fund Management (HFM). The Harvest FTSE China A50 Index ETF, listed on Shanghai Stock Exchange (SSE) today and is the first domestically listed ETF to track a FTSE Russell index.
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Source: ftserussell.com
JPMorgan backing technology to transform trading desks
August 7, 2017--Changes happening in Europe and North America first, but Asia driving mobile
As trading revenues plunge at bulge bracket investment banks, JPMorgan Chase & Co. is putting its faith in technology to drive growth.
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Source: South China Morning Post
China admits to disguised fiscal borrowing risk
August 3, 2017--China's finance ministry has acknowledged that public-private partnerships for infrastructure funding have grow to be a car for "disguised borrowing" by native...
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Source: FT.com
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