'Some super bears are now expecting an imminent collapse of China's banking system and currency'
February 16, 2016--China's banking sector is now so big that if it even if it lost only of 10% of its outstanding loans to defaults, that would be the equivalent of wiping out about 30% of China's annual GDP, according to UBS economist Tao Wang.
That scenario would require an immediate bailout of China's banking system, which is now the largest in the world, Wang says, so "some super bears are now expecting an imminent collapse of China's banking system and currency."
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Source: businessinsider.co.id
BetaShares Weekly Newsletter-The Relative Performance of Fundamental Indexing over the Cycle
February 16, 2016--Due to the tendency of stock prices to over and undershoot fundamentals over the economic cycle, both finance theory and empirical evidence suggests that "fundamentally weighted" equity indices (FWIs) should over time outperform more traditional market-cap weighted equity indices (MCWIs).
We have previously explored the relative performance of FWIs in relation to sector rotation over time.
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Source: BetaShares
BetaSmartz Launches First Across-the-Board Automated Investment Platform
February 15, 2016--BetaSmartz's technology, based on six decades of Nobel prize-winning research and industry expertise, utilises a wide universe of investment products to create portfolios that equal the performance and sophistication of those in use at global fund managers, on a platform flexible, scalable and efficient enough to suit institutions, adviser groups and individuals.
Founder and CEO John James sees BetaSmartz as the vendor of choice for the robo-advice industry. "Robo-advice is a buzzword right now, but basically it's the application of technology to what is otherwise a manual, inefficient process.
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Source:Yahoo Finance
Japanese Economy Contracts On Falling Consumer Demand
February 15, 2016--Japan's economy shrank 0.4 percent between October and December, compared with the previous quarter.
This raises questions about Prime Minister Shinzo Abe's financial stimulus policy to lift the world's third largest economy out of stagnation. On an annualized basis the economy contracted 1.4 percent during the period.
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Source: emergingequity.org
Easier for individuals to buy bonds
February 15, 2016--China's central bank yesterday allowed individual investors to purchase all types of bonds over bank counters.
Individuals with annual income of more than 500,000 yuan (US$76,500), 3 million yuan of financial assets and over two years of experience in securities investment can now buy any bonds they like over the counter, according to a regulation released by the People's Bank of China.
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Source: shanghaidaily.com
China Spurs Biggest Yuan Rally Since 2005 as Zhou Voices Support
February 14, 2016--PBOC strengthens reference rate by the most in three months
Containing depreciation expectations a top priority: Mizuho
China's central bank handed investors a confidence booster, strengthening the yuan's fixing by the most in three months and talking up the currency as markets reopened after the week-long Lunar New Year break.
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Source: Bloomberg
Transcript of Governor Zhou Xiaochuan's Exclusive Interview with Caixin Weekly
February 14, 2016--Recently Governor Zhou Xiaochuan had an interview with the Caixin Weekly and talked about the RMB exchange rate regime reform, macro-prudential policy framework, digital currency, and other topics.
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Source: pbc.gov.cn
BetaShares launches Managed Risk Global Share Fund
February 12, 2016--We are pleased to announce the expansion of our Managed Risk Series with the launch of the BetaShares Managed Risk Global Share Fund (managed fund) ASX: WRLD.
BetaShares Managed Risk Global Share Fund joins HVST and AUST in the Managed Risk line-up, enabling advisers, SMSFs and individual investors to create diversified, risk managed equities portfolios with convenience and ease.
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Source: BetaShares
Infographic-The World is Turning Japanese
February 12, 2016--Negative rates, Kuroda's "Peter Pan" analogy, and gold's surge.
Nearly a year ago, Bank of Japan governor Haruhiko Kuroda described the unlikely inspiration behind Japan's unprecedented monetary stimulus: Peter Pan.
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Source: visualcapitalist.com
Shenzhen-Hong Kong stock connect set to be delayed for longer due to market volatility
February 11, 2016--Scheme would represent further capital account opening for mainland China.
The plan to connect the Hong Kong and Shenzhen stock exchanges looks set to be delayed until at least the second half of this year, with the launch of the new cross-border scheme not possible until volatile markets turned stable, the heads of the local bourse said on Thursday.
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Source: South China Morning Post