HKEx chairman confirms Shenzhen connect to be launched in 2015
June 22, 2015--Hong Kong Exchanges and Clearing Ltd (HKEx) Chairman Chow Chung Kong confirmed on Monday that a trading link connecting Shenzhen and Hong Kong stock exchanges will be launched later this year.
Chow was speaking to reporters at a function to mark HKEx's 15 anniversary of its listing.
view more
Source: Reuters
Vietnam Seeks Investment Boost With Wave of Industry Opening
June 21, 2015--Vietnam is betting that the most significant easing of business regulation in 25 years and an accelerated sale of state-owned firms' shares will revive a flagging investment outlook.
The government on July 1 will reduce to six from 51 the number of areas in which firms are prohibited from operating, allowing fireworks manufacture and genetically-modified products, among others. It will also loosen regulations in more than 100 other areas in what will be the biggest overhaul of business rules in the economy since private firms were allowed in Vietnam in 1990.
view more
Source: Bloomberg
Sebi may finalize e-IPO rules, easier start-up listing norms
June 20, 2015--In a new wave of reforms, markets regulator Sebi is set to herald an e-IPO system to allow investors to bid online in the public offers, while the new-age startups will get a separate platform to raise funds and list their shares with an easier set of regulations.
The proposed measures, expected to be announced this week after final clearance from the board of the regulatory body, would mark a greater use of latest technology in the marketplace and also help entrepreneurs in various emerging sectors including e-commerce to tap the markets.
view more
Source: The Times of India
China Shares Suffer Worst Week Since 2008
Shanghai and Shenzhen benchmarks fall into correction territory, ending down 6.4% and 5.9%, respectively
June 19, 2015--Chinese shares plunged Friday, suffering their sharpest fall since the global financial crisis, amid rising fears of a bubble in the country's volatile equity markets.
Stocks in Shanghai and Shenzhen markets were pushed into correction territory, off more than 10% from recent highs.
view more
Source: Wall Street Journal
New Listings of Overseas Commodity and Domestic Strategic ETNs
June 19, 2015--Korea Exchange (KRX) plans to list 4 overseas commodity ETNs and a domestic strategic ETN on June 18, 2015.
Overseas commodity ETNs are issued by Shinhan Investment Co. and domestic strategic ETN is issued by Korea Investment & Securities Co.
view more
Source: Korea Exchange (KRX)
Net capital inflows to China increase
June 17, 2015--Net capital inflows to China were about $20 billion in the first five months of the year, the country's foreign exchange regulator reported on Wednesday.
This reversed a downward trend in the previous nine months, which showed capital inflows were falling.
In May, foreign exchange receipts into China's commercial banks reached $1.3 billion, according to the State Administration of Foreign Exchange.
view more
Source: China Daily
India to relax rules preventing corporates selling options
June 17, 2015--New guidelines expected for corporates that want to write options The Reserve Bank of India (RBI) is getting ready to issue new guidelines that would allow Indian exporters and importers to hedge their foreign exchange exposure by selling covered calls and puts; currently corporates are only allowed to buy options.
Fearful of the effect that a rise in US interest rates could have on those with heavy dollar exposures, the RBI has repeatedly urged Indian corporates to increase their forex...
view more
Source: Risk.net
BetaShares-Sector Rotation and Fundamental vs. Market-Cap Weighted Indices
June 16, 2015--This note explores how the tendency of individual stocks and industry sectors to both overshoot and undershoot their fundamental values over time can affect the performance of traditional market-cap weighted equity indices (MCWIs) relative to "fundamentally weighted" indices (FWIs).
By seeking to avoid the tendency of MCWIs to overweight stocks that are "overvalued" and underweight stocks that are "undervalued", financial' theory suggests FWI's should be able to achieve superior long-term return performance relative to MCWIs. What's more, Australian and US evidence backs up this proposition.
view more
Source: BetaShares
UPDATE 1-Hong Kong-Shenzhen connect start date not finalised yet-sources
June 16, 2015--Differences over investment quotas, tradable securities
Delay beyond August may risk pushing scheme launch to 2016
May delay inclusion of China A-shares in benchmark indexes
The announcement of the launch date of the landmark Hong Kong-Shenzhen stock market link is on hold due to technical issues, putting at risk China's pledge to have the scheme ready by the year-end, three sources familiar with the situation said.
view more
Source: Reuters
China's Unsettling Stock Market Boom
June 15, 2015--Something strange is going on in the Chinese stock market.
Even as the country's economy has slowed, stocks have surged about 147 percent in the last 12 months as individual investors have poured their savings and have borrowed money to put into the market.
view more
Source: New York Times