October 2015 Indonesia Economic Quarterly: In Times of Global Volatility
October 22, 2015--Heightened global uncertainty has made macroeconomic management more challenging and downside risks to the near-term outlook more pronounced.
The baseline projection for Indonesia's 2015 GDP growth remains at 4.7%. Growth is expected to pick up to 5.3% in 2016, reflecting gradually improving external conditions and higher public investment spending.
The country's growth outlook is subject to considerable risks which include the normalization of US interest rates, continued slowdown in key trading partners, including China, a weakened corporate sector due to currency depreciation and declining profit margins.
The government recognizes the need to improve business confidence and the investment climate in order to enhance growth and has taken several important steps in this direction.
view the October 2015 Indonesia Economic Quarterly: In Times of Global Volatility
Source: World Bank
China's Record Capital Outflows Put Tobin Tax Back on the Agenda
Levy studied as a way to reduce large cross-border flows
Foreign reserves are tumbling as PBOC supports the yuan
October 22, 2015--China has for the second time this month raised the possibility of taxing foreign-exchange transactions as record capital outflows from the world's second-largest economy put pressure on the yuan.
"We are currently studying measures including Tobin Tax, unremunerated reserve requirement and handling fees for foreign-exchange trading to suppress any abnormal and significant flows of short-term funds that seek arbitrage," Wang Xiaoyi, deputy administrator of the State Administration of Foreign Exchange, said Thursday at a press conference in Beijing.
iSTOXX MUTB Japan Quality 150 Index To Underlie Retail Fund Available In Japan
October 21, 2015--STOXX Limited today announced that the iSTOXX MUTB Japan Quality 150 Index has been licensed by Mitsubishi UFJ Kokusai Asset Management (MUKAM) to underlie a passive index fund.
The new fund will be geared toward retail investors and expected to launch in November 2015.
Developed with input from leading Japanese trust bank Mitsubishi UFJ Trust and Banking Corp. (MUTB), the iSTOXX MUTB Japan Quality 150 Index aims to capture the performance of quality companies with high profitability, low leverage and sustainable cash flows in Japan. MUKAM is part of the Mitsubishi UFJ Financial Group (MUFG) and represents the investment trust business that focuses on meeting a wide range of client asset management needs.
view more
Source: STOXX
BetaShares Weekly Newsletter-Where to for Sydney house prices?
October 20, 2015--With the softening in Sydney home auction clearances rates in recent weeks and the surprise decision by Westpac to raise mortgage interest rates by 0.2%, there is growing concern about the outlook for property prices.
This note considers the fundamentals for the Sydney market- the current bellwether market-in particular.
view more
Source: BetaShares
China Liquidity Trap Deters Funds as Debt Trade Fraction of U.S.
October 15, 2015--Investors buy-and-hold safest bonds as few market makers seen
Lack of reliable ratings hinder investors amid default risks
China's efforts to open its $5.9 trillion onshore bond market are being hampered by secondary trading that's less than a quarter of levels seen in the U.S., making global funds wary of being trapped in riskier bonds.
view more
Source: Bloomberg
Deutsche Bank Research-Asia-Pacific-Synthetic Equity & Index Strategy-
October 14, 2015--The Deutsche Bank Markets Research-Synthetic Equity & Index Strategy-Asia-Pac ETF+ Quarterly Directory is available.
view
Source: Deutsche Bank Research-Asia-Pacific-Synthetic Equity & Index Strategy
China's "Zombie Companies" Could Slow Economic Growth For Years To Come, Commerzbank Warns
October 13, 2015--China's state-owned banks will support its highly indebted companies, and thus avoid a recession, however, Japan shows that keeping many seemingly "dead companies" (or "zombies") afloat weighs on the long-term growth prospects of a country, of which China is unlikely to quickly recover, Commerzbank says.
The Chinese government attaches at least as much importance to...
view more
Source: emergingequity.org
China's Finance Ministry Plan Yuan Bond Sales in London
October 13, 2015--All previous offshore issuance of the notes was in Hong Kong
Blue Arrow
Offering to proceed after PBOC sells yuan debt in London
China plans to issue yuan-denominated sovereign bonds in London for the first time as it seeks a greater role for its currency in global trade and finance, according to people familiar with the matter.
The sale would be the first offshore issuance of the notes outside of Hong Kong and is expected to take place after the People's Bank of China sells one-year bills in the U.K. capital...
view more
Source: Bloomberg
BetaShares Weekly Newsletter-Capital vs. Total Return: How to correctly assess your Fund's performance...
October 13, 2015--When comparing the performance of different investments, investors need to remain aware of an important but often easily overlooked distinction- that between the capital (or price) returns on an investment, and its "total" returns.
As this note will demonstrate, this distinction is especially important when it comes to investments that produce relatively high income compared to capital returns.
view more
Source: BetaShares
Deutsche Bank Research-Asia-Pacific-Synthetic Equity & Index Strategy-Inflows to locally listed ETFs despite
October 12, 2015--Global ETF Assets retreated further but attracted strong inflows Amid bearish equity markets globally, ETP AUM reduced to $2.75 trillion at the end of September, almost flat as compared to 2014 closing levels. However, ETP flows strengthened in September totalling +$34.4bn with YTD flows nearing +$250 mark. Asia-Pac listed ETP assets closed the month at $231.3bn with 14.4% YTD gain, highest among all the regions.
Global investor positioning:
Continue to prefer broad DM/Europe but bearish on country focus/ broad EM
We see clear trend that investors continue to favor broad DM, especially Europe, while bearish on EM. Based on ETFs listed offshore, most of the DM and EM countries experienced outflows in September, primarily from Japan, India and South Korea focused ETFs recording outflows of -$489, -$269 and -$241mn respectively.
Japan focused ETFs experienced outflows for the first time since January this year amid weakening Japanese equity markets and strengthening Yen during last one and a half months. India focused ETFs saw outflows for third consecutive month while outflows from China focused ETFs have slowed down in the past few weeks, as the market seems to be stabilized.
China A-share ETFs saw inflows in September after significant outflows this year
Among offshore China ETFs, we have seen divergent flow trend for ETFs focus on A-share vs H-share since the launch of Shanghai-Hong Kong Stock Connect in November last year: A-share ETFs have been hit by significant outflows and H-share ETFs have attracted significant inflow. This trend has reversed during last couple of months with A-shares recording positive flows of +$70mn and +$162mn in August and September respectively, while H-shares saw outflows of c.-$250mn in each of the last two months.
view more
Source: Deutsche Bank Research-Asia-Pacific-Synthetic Equity & Index Strategy
If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.