China has set up special group to launch Shenzhen-HK stock connect: Caixin
August 10, 2016--China's securities regulator recently set up a special work group tasked with launching the Shenzhen-Hong Kong Stock Connect scheme, Chinese magazine Caixin reported on its website.
The group, headed by Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), is responsible for coordinating efforts among various departments within the CSRC, relevant government bodies, as well as between Chinese and Hong Kong regulators, according to Caixin.
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Source: Reuters
Hang Seng Indexes Licenses KB Asset Management to Use Hang Seng China Enterprises Index as Basis for ETF
August 10, 2016--Hang Seng Indexes Company Limited ("Hang Seng Indexes") has licensed the Hang Seng
China Enterprises Index ("HSCEI") to KB Asset Management Company Limited ("KB Asset Management") to serve as the underlying index for the creation of an exchange-traded fund ("ETF").
The ETF was listed on the Korea Exchange today.
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Source: Hang Seng Indexes Company Limited
DB-Markets Research-Synthetic Equity & Index Strategy-Asia-Pac Monthly-EM and Broad Asia Preferred while Japan and China Saw Outflows
August 10, 2016--Global ETP assets grow to $3.3 trillion amid rising markets and healthy inflows
Global ETP AUM was up by 5% ($157bn) last month and reached $3.3tn (11.3% increase YTD), supported by bullish markets and strong inflows.
Asia-Pac listed ETPs closed the month at record high assets of $306bn. ETPs listed globally (ex-RoW) received inflows of +$53.7bn over the last month with US ETPs bringing in largest inflows (+$45.7bn), followed by Europe (+$10.6bn) while Asia-Pac ETPs experienced outflows of -$2.6bn. Global ETP flows reached +$164.5bn in total YTD (5.7% of last year end AUM)
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Source: Source: Deutsche Bank Markets Research-Synthetic Equity & Index Strategy
BetaShares Weekly Newsletter-Another rate cut more likely than not
August 9, 2016--Although the Reserve Bank of Australia's August Statement on Monetary Policy (SMP) did not contain an explicit easing bias, nor changes to the Bank's growth or inflation forecasts, it's nonetheless still consistent with a strong bias to cutting interest rates further-even after the RBA's decision to slash official rates to 1.5% a few days earlier.
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Source: BetaShares
IMF Working Paper-Spillovers from China's Growth Slowdown and Rebalancing to the ASEAN-5 Economies
August 9, 2016--Summary: After many years of rapid expansion, China's growth is slowing to more sustainable levels and is rebalancing, with consumption becoming the main growth driver. This transition is likely to have negative effects on its trading partners in the near term.
This paper studies the potential spillovers to the ASEAN-5 economies through trade, commodity prices, and financial markets. It finds that countries with closer trade linkages with China (Malaysia, Singapore, and Thailand) and net commodity exporters (Indonesia and Malaysia) would suffer the largest impact, with growth falling between 0.2 and 0.5 percentage points in response to a decline in China's growth by 1 percentage point depending on the model used and the nature of the shock. The impact could be larger if China's slowdown and rebalancing coincides with bouts of global financial volatility. There are also opportunities from China's rebalancing, both in merchandise and services trade, and there is preliminary evidence that some ASEAN-5 economies are already benefiting from these trends.
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Source: IMF
IMFWorking Paper-What is Responsible for India's Sharp Disinflation?
August 8, 2016--Summary: We analyze the dramatic decline in India's inflation over the last two years using an augmented Phillips Curve approach and quantify the role of different factors.
Our results suggest that, contrary to popular perception, the direct role of lower oil prices in India's disinflation was relatively modest given the limited pass-through into domestic prices. Instead, we find that inflation is a highly persistent process in India, reflecting very adaptive expectations and the backward looking nature of wage and support price-setting. As a consequence, we find that a moderation of expectations, both backward and forward, and a rationalization of Minimum Support Prices (MSPs), explain the bulk of the disinflation over the last two years.
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Source: IMF
India Consumer Confidence Loses Momentum in July
August 8, 2016--Consumers Less Upbeat About the Future
Indian consumer sentiment fell in July in a broad
based deterioration which saw lower optimism towards personal finances, the business environment, employment and the real estate market.
The MNI India Consumer Sentiment Indicator decreased 2.6% on the month to 111.6 in July,
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Source: MNI Indicators
BetaShares launches ETFs to track the global healthcare and global agriculture sectors
August 8, 2016--We are proud to announce the launch of two new funds in the Global Sector Series-BetaShares Global Healthcare ETF -Currency Hedged (ASX: DRUG) and the BetaShares Global Agriculture Companies ETF - Currency Hedged (ASX: FOOD).
DRUG aims to track the performance of an index comprising of 60 of the largest global (ex-Australia) healthcare companies.
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Source: BetaShares
Asia Frontier Capital (AFC)-uly 2016 Newsletter
July 8, 2016--The Brexit surprise in late June caused a period of volatility in worldwide equity markets which was followed by a rebound in July with US markets posting significant gains, while most European markets recovered somewhat but are still trading below pre-Brexit levels.
Interestingly, Japan, emerging markets, and frontier markets in Asia have benefited and they rallied to higher levels than before Brexit.
China's Small-Time Stock Investors Aren't Buying the Rebound
August 7, 2016--Trader burnt by last year's boom-bust is looking to cash out
Lackluster interest by individuals undermines Shanghai gains
When Frank Chen sees China's stocks rise, he thinks of how he can reduce his investments.
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Source: Bloomberg
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