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Fund chiefs debate obstacles to China entry
Tapping the mainland market is as tough as ever for foreign asset managers, particularly given the current environment, say industry experts.
November 21, 2013--China's Rmb2.8 trillion ($459.6 billion) mutual fund market remains enticing for foreign asset managers, with many viewing joint ventures as the most appealing way to enter the mainland.
But it remains a very tough proposition build up a profitable and sustainable onshore business, argued a panel at AsianInvestor’s Art of Asset Management conference in Hong Kong this week.
A minimum of 30 staff are typically required for mainland fund house offices, says Gerard De Benedetto, CEO of An Zhong Investment Management, the China subsidiary of Italian firm Azimut Holdings...
NSE extends cross margins to ETFs
Move would primarily benefit ETF investors seeking to take counter positions
November 20, 2013--The National Stock Exchange (NSE) has extended cross margining to index-based exchange-traded funds (ETFs). So far, the facility was available only in the equity stocks, index futures and stock futures segments.
Cross margining helps market participants, as it reduces the margin requirement and trading costs.
China''s population suffers gender imbalance
November 20, 2013--Even if one assumes that women in China today are willing to have two children, two out of every 10 mothers would have to have three offspring each just to keep the population level by the middle of this century, according to an analysis of UN data.
China's "missing girls" make it much harder for the country to keep its population stable, according to Carl Haub, demographer at the Washington-based Population Research Bureau. In recent decades, China has produced only 80 baby girls for every 100 baby boys.
China bank wants faster freeing of yuan
November 20, 2013--With a shift in tone and language, China's central bank governor has dangled the prospect of speeding up currency reform and giving markets more room to set the yuan's exchange rate as he underlines broader plans for sweeping economic change.
The central bank under Zhou Xiaochuan has consistently flagged its intention to liberalise financial markets and allow the yuan to trade more freely, even before the Communist Party's top brass unveiled late last week the boldest set of economic and social reforms in nearly three decades.
First S&P 500-based ETF Launches in China
S&P Dow Jones Indices' License with Bosera Asset Management Leads to Greater Chinese Access to the U.S. Market
November 19, 2013--S&P Dow Jones Indices, one of the world's leading providers of financial market indices, further strengthened its presence in China today as the first ever S&P 500-based ETF in China was launched by Bosera Asset Management.
The ETF, a result of S&P Dow Jones Indices' license with Bosera Asset Management, is based upon the premier measure of U.S. stock market performance, the S&P 500, and enables Chinese investors to express their views on the U.S. market.
The launch of China's first ETF based upon the S&P 500 signals an acceleration of the ETF market and a larger and more diversified range of investment opportunities for China investors. The total asset under management of ETFs listed in mainland China (Shanghai and Shenzhen) rose to over 150 billion Yuan (about USD $25 billion) in Q3 2013 with close to 80 ETFs available in the market.
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-China focused ETFs bring inflows of $0.3bn
November 19, 2013--Data in this report is as of 15 November 2013.
Market Review
Last week, all the major markets in the Asia-Pacific region advanced amid US Federal Reserve Chair nominee Janet Yellen indicated the delay in monetary tapering in the US. In Japan, weaker yen supported equity markets rally. Compared to the week before, from north to south:
Japan (Nikkei 225) +7.66%
South Korea (KOSPI2) +1.41%
China (CSI 300) +1.85%
Hong Kong (HSI) +1.27%
Singapore (FSSTI) +0.76%
Australia (S&P/ASX 200) +0.02%
Market Review
Last week, all the major markets in the Asia-Pacific region advanced amid US Federal Reserve Chair nominee Janet Yellen indicated the delay in monetary tapering in the US. In Japan, weaker yen supported equity markets rally. Compared to the week before, from north to south:
Japan (Nikkei 225) +7.66%
South Korea (KOSPI2) +1.41%
China (CSI 300) +1.85%
Hong Kong (HSI) +1.27%
Singapore (FSSTI) +0.76%
Australia (S&P/ASX 200) +0.02%
New Product Launch Review
Last week, one new product was launched in the Asia-Pacific ETP market. State Street listed one equity ETF (WEMG AU) on the Australian Securities Exchange providing exposure to large and mid cap companies in emerging markets worldwide.
ETP Weekly Flows - Mild inflows over the week
Last week, Asia-Pacific ETP market recorded mild inflows of +$92mn vs. -$370mn of outflows for the previous week, setting the YTD weekly flows average at +$317mn (+$14.6bn YTD in total flows). Emerging markets equity ETFs collected weekly inflows of +$126mn while developed markets equity ETFs lost -$44mn in outflows over the last week. On a country level, ETFs benchmarked to China received +$337mn of inflows while South Korea experienced weekly outflows of -$297mn.
Winners and losers: At ETP level, CSOP FTSE China A50 ETF (82822 HK) and Samsung KODEX Leverage ETF (122630 KS) were the largest fund flow receivers of the week collecting +$316mn and +$102mn respectively. Over the same period, biggest outflows were experienced by Maxis Nikkei 225 ETF (1346 JP) and Samsung KODEX 200 (069500 KS) recording -$172mn and -$132mn of outflows respectively.
Turnover Review - Floor activity up by 60%
Asia-Pacific ETP turnover totaled $15.8bn for the last week, 60% up from the previous week’s total. Turnover in Japan accelerated by equity market rally with $7.3bn turnover, followed by South Korea ($3.3bn), China ($2.6bn) and Hong Kong ($2.1bn). Among equity ETFs, Leveraged long, emerging country, Asia-Pacific developed country and short ETFs had total turnover of $6bn, $4.9bn, $2.7bn and $1bn respectively. Within fixed income asset class, turnover in sovereign and money market ETFs totaled $374mn and $180mn respectively.
Assets under Management Review - Assets increased by $4.7bn
Last week, Asia-Pacific ETP AUM increased by $4.7bn and ended the week at $165.7bn. On a year-to-date basis, Asia-Pacific ETP market is up by $29.8bn or 21.9% above last year’s closing.
China central bank vows faster FX reform; IPO hopes tempered
November 19, 2013--China's officials indicated on Tuesday how they plan to steer reforms on interest rates, the currency and stock markets, following a top-level party meeting that promised sweeping changes over the next decade.
Following up on that, central bank chief Zhou Xiaochuan vowed to quicken the process of full yuan convertibility, which would allow the free movement of capital across China's borders and which is a demand of many of the country's major trading partners.
Advisers drive ETF boom towards $10bn mark
February 15, 2013--The Australian exchange traded fund (ETF) industry is nearing the $10 billion mark, following strong interest from advisers and SMSF investors, according to State Street Global Advisors (SSgA).
At the end of October, Australian ETFs reached $9.4bn in assets under management (AUM), which is an increase from $6.5bn the previous year.
BNY Mellon Grows Dealing Services in Asia Pacific
November 14, 2013--BNY Mellon is expanding its Global Markets capabilities with the launch of a new Asia Pacific Capital Markets business, through Tokyo-based The Bank of New York Mellon Securities Company Japan Ltd. The company is now able to provide dealing services on an agency basis across a broad range of fixed income and equity securities for institutional clients in Japan and certain other countries in the Asia Pacific region.
The company has added a nine-strong team of broker-dealer and capital markets specialists to its existing foreign exchange services capabilities in Tokyo. The new team is led by Eiichiro (Eric) Masaki who has been appointed as Head of Japan Capital Markets Sales and reports into Kazuma Yamashita, Head of Japan Global Markets Sales. Masaki joins BNY Mellon from Societe Generale, where he was Head of Non-Yen Fixed Income Flow Sales. In total, he has more than 20 years' experience in similar roles.
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-South Korea benchmarked ETFs experience outflows
November 14, 2013--Data in this report is as of 8 November 2013.
Market Review
Last week, all the major markets in the Asia-Pacific region remained in negative territory on the concerns that strengthening recovery in US will cause the Federal Reserve to begin scaling back stimulus. Compared to the week before, from north to south:
Japan (Nikkei 225) -0.81%
South Korea (KOSPI2) -3.02%
China (CSI 300) -3.23%
Hong Kong (HSI) -2.17%
Singapore (FSSTI) -0.75%
Australia (S&P/ASX 200) -0.19%
New Product Launch Review
Last week, one new product was launched in the Asia-Pacific ETP market. State Street listed one equity ETF (WDIV AU) on Australian Securities Exchange providing exposure to highest dividend yielding companies within the S&P Global Broad Market Index.
ETP Weekly Flows - EM benchmarked ETFs experience outflows
Last week, Asia-Pacific ETP market recorded outflows of -$394mn vs. +$1.2bn of inflows for the previous week, setting the YTD weekly flows average at +$321mn (+$14.4bn YTD in total flows). Developed markets equity ETFs collected weekly inflows of +$237mn while emerging markets equity ETFs lost -$781mn in outflows over the last week. On a country level, ETFs benchmarked to Japan received +$227mn of inflows while South Korea experienced weekly outflows of -$763mn. Financial sector ETFs received +$266mn of inflows during last week.
Winners and losers: At ETP level, UBS SDIC CSI 300 Financials Index ETF (159933 CH), Daiwa Nikkei 225 ETF (1320 JP) and Nomura Topix ETF (1306 JP) were the largest fund flow receivers of the week collecting +$274mn, +$265mn and +$171mn respectively. Over the same period, biggest outflows were experienced by Samsung KODEX 200 ETF (069500 KS) and Daiwa Topix ETF (1305 JP) recording -$826mn and -$365mn of outflows respectively.
Turnover Review - Floor activity down by 17.7%
Asia-Pacific ETP turnover totaled $9.9bn for the last week. South Korea took the lead in the turnover ranking with $3.1bn turnover, followed by Japan ($2.8bn), China ($2.4bn) and Hong Kong ($1.2bn). Among equity ETFs, Emerging country, leveraged long, Asia-Pacific developed country and short ETFs had total turnover of $4bn, $3bn, $0.9bn and $0.7bn respectively. Within fixed income asset class, turnover in sovereign and money market ETFs totaled $542mn and $149mn respectively.
Assets under Management Review - Assets decreased by $3.4bn
Last week, Asia-Pacific ETP AUM decreased by $3.4bn and ended the week at $161bn. On a year-to-date basis, Asia-Pacific ETP market is up by $25bn or 18.4% above last year’s closing.
