Environmental, social and other risks stalk Chinese listed companies
July 15, 2015--The A-share crisis has done little to expose risks facing investors in Chinese groups listed overseas
Gyrations on China's domestic stock exchanges over the past month have dramatised a gamut of market risks, including an excess of margin leverage, the conflicted role of the state as promoter and regulator and the see-saw sentiment of a retail-dominated investor pool.
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Source: FT.com
China Growth Beats Economist Forecasts as Stimulus Kicks In
July 14, 2015--China's economic growth proved resilient in the second quarter as policy makers stepped up support and a stock market boom--since soured--spurred services.
Gross domestic product rose 7 percent in the three months through June from a year earlier, the National Bureau of Statistics said Wednesday, unchanged from the first quarter and beating economists' estimates for 6.8 percent. Industrial output in June rose 6.8 percent, while fixed-asset investment increased 11.4 percent in the first half.
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Source: Bloomberg
SEBI working on reporting platform for debt securitisation-RBI deputy
July 14, 2015--India's market regulator is working on a platform for reporting securitisation deals, Reserve Bank of India deputy governor R. Gandhi said on Tuesday.
Gandhi, speaking at an industry conference in Mumbai, said banks' drive to securitise priority sector loans will revive the segment.
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Source: Reuters
China Growth Beats Economist Forecasts as Stimulus Kicks In
July 14, 2015--China's economic growth proved resilient in the second quarter as policy makers stepped up support and a stock market boom--since soured--spurred services.
Gross domestic product rose 7 percent in the three months through June from a year earlier, the National Bureau of Statistics said Wednesday, unchanged from the first quarter and beating economists' estimates for 6.8 percent.
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Source: Bloomberg
BetaShares Australian Half Year ETF Review: June 2015
July 14, 2015--The Australian exchange traded fund (ETF) market continued its rapid growth over the first half of the year with ETF market capitalisation growing by $3.4 billion (23%) to reach a new record high of $18.4 billion at the end of the 2014/15 financial year.
Significantly, despite subdued price growth in equities markets, investors continued to support ETFs, with around $2.9 million of net new money flowing into the industry. Over the last twelve months, the industry has grown by $6.7 billion, representing a 57% increase year-on-year.
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Source: BetaShares
BOJ holds steady, trims growth forecast on soft exports
July 14, 2015--The Bank of Japan trimmed its economic growth forecast on Wednesday but held off on offering fresh stimulus, convinced that an expected pick up in consumption will help accelerate inflation toward its 2 percent target.
Defying lingering market scepticism over its rosy outlook, the central bank roughly maintained its forecasts that see inflation reaching its target in the fiscal year beginning in April 2016.
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Source: Reuters
China Stocks Slump for Second Day as GDP Fails to Lift Sentiment
July 14, 2015--China's stocks fell for a second day after better-than-expected economic data failed to boost investor confidence in the world's worst-performing equity market and more companies resumed trading.
The Shanghai Composite Index slumped 2.7 percent to 3,819.84 at 1:07 p.m., led by industrial companies.
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Source: Bloomberg
Investors in China not allowed to jump
July 14, 2015--Zhu Rongji, when mayor of Shanghai, apparently once complained about the retail investors who would sometimes protest outside city hall when the value of their portfolios collapsed.
In a perhaps apocryphal quip, Mr Zhu-who went on to become Chinese premier-claimed it would have been easier to be mayor in the city's pre-revolutionary 1920s and 30s heyday, when angry investors were more likely to jump out of windows.
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Source: FT.com
Taiwan Futures Exchange to Launch Chinese Yuan FX Contracts
TAIFEX has also launched two new ETF Futures on China's leading stock indices, the FTSE China A50 Index and the SZSE 100 Index.
July 13, 2015--Despite the recent crash of the Chinese equity market, the trend to internationalize the yuan (also known as RMB and CHN) continues.
The main derivatives exchange in Taiwan, the Taiwan Futures Exchange (TAIFEX) will launch two RMB FX futures contracts, the USD/CNT FX futures and the USD/CNH FX futures on July 20, 2015.
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Source: Finance Magnates
IMF Working paper-China's Labor Market in the "New Normal"
July 13, 2015--Summary: As China implements reforms under the "new normal," maintaining stability in the labor market is a priority. The country's demography and labor dynamics are changing, after benefitting in past decades from ample cheap labor. So far, the labor market appears to be resilient, even as growth slows, driven in part by expansion of the services sector.
Migrant flows and possible labor hoarding in overcapacity sectors may also help explain this. Yet, while the latter two factors help serve as shock absorbers-contributing to labor market stability in the short term-if they persist, they may delay the needed adjustment process, contributing to an inefficient allocation of resources and curtailing productivity gains. This paper quantifies to what extent structural trends and the reform pace affect employment growth under the new normal. Delays in reform implementation would weaken growth prospects in the medium term, running the risk that job creation will fall below policy targets, leading to labor market pressures in the future. In contrast, successful transition might require faster reforms, including in the overcapacity and state-owned enterprise sectors, supported by well targeted social safety nets.
view the IMF Working paper-China's Labor Market in the "New Normal"
Source: World Bank
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