Hang Seng is first HK financial institution to launch RQFII ETF
November 13, 2013--Hang Seng will launch a Renminbi Qualified Foreign Institutional Investor (RQFII) exchange-traded fund (ETF)- the Hang Seng China A Industry Top Index ETF (Fund)-making it the first local financial institution in Hong Kong to issue an RQFII ETF.
The Fund has been authorized by the Securities and Futures Commission and is expected to be listed on The Stock Exchange of Hong Kong (SEHK) on November 26 2013 (RMB Counter stock code: 83128 / HKD Counter stock code: 03128). It will be available for subscription at Hang Seng Bank branches between November 12-19 2013. The Fund units are denominated in renminbi and, after the Fund is listed, investors can trade in either renminbi counter or HKD counter in the SEHK.
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Source: The Asset
4 New ETFs to be Listed on December 5, 2013 (Thu.)-BlackRock Group, "iShares(R)" Series (Second Installment)
November 13, 2013--Today, Tokyo Stock Exchange, Inc. (TSE) approved the listings of four new ETFs managed by BlackRock Fund Advisors. These four issues use the JDR scheme and will be listed on Thursday, December 5, 2013.
Ticker | Issue Name | Underlying Index | Trading Unit |
1587 | iShares S&P 100 ETF-JDR | S&P 100 | 1 unit |
1588 | iShares Russell 2000 ETF-JDR | Russell 2000 Index | 1 unit |
1589 | iShares High Dividend ETF-JDR | Morningstar® Dividend Yield Focus Index SM | 1 unit |
1590 | iShares U.S. Real Estate ETF-JDR | Dow Jones U.S. Real Estate Index | 1 unit |
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Source: TSE
China vows 'decisive' role for markets, results by 2020
November 12, 2013--China's leaders pledged to let markets play a "decisive" role in the economy as they unveiled a reform agenda for the next decade on Tuesday, looking to secure new drivers of future growth.
China aims to achieve "decisive results" in its reform push by 2020, with economic changes in focus, the ruling Communist Party said in a communiqué released by state media at the end of a four-day conclave of its 205-member Central Committee.
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Source: Reuters
BNY Mellon Granted Singapore Capital Markets Services Licence
Enables company to expand its investment management business and manufacture locally
November 12, 2013--BNY Mellon, the global leader in investment management and investment services, has been awarded a Capital Markets Services licence by the Monetary Authority of Singapore for its new dedicated Singapore-based subsidiary* to provide fund management services in Singapore. The licence was approved on 11, November 2013.
With the new licence, the Singapore subsidiary, BNY Mellon Investment Management Singapore Pte. Limited, will be able to conduct a full range of investment management activities, including research, portfolio management, marketing and sales of collective investment schemes. BNY Mellon Investment Management has been offering global investmen, solutions to institutional investors in the region through its investment boutiques, each with their own independent investment philosophy and strategy. The new licence will help the company expand its existing institutional business in Singapore and strengthen its presence in Southeast Asia. It will also enable the company to start building local manufacturing capabilities.
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Source: BNY Melon
South Korea's derivatives decline threatens equity trade
November 12, 2013--South Korea's derivatives market, once the world's largest by trading volume, is suffering a sharp drop in liquidity as stricter regulations damp appetite and drive investors to neighbouring markets in China and Japan.
The country was the world's top derivatives trader until 2011 thanks to heavy retail investor activity in equity derivatives. Last year it fell to fifth ranked in the world, and is now not even in the top 10 as retail investors deserted the market after regulators raised the entry barriers against them.
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Source: FT.com
ASX looks to volatility-linked products to drive Australia Vix futures liquidity
November 12, 2013--Increasing the potential liquidity pool a major aim for Australia volatility futures market
The Australian Securities Exchange (ASX) is looking to extend the product suite linked to its recently launched Vix futures in order to avoid the issue of low liquidity which has dogged other attempts by Asian exchanges to kick-start similar domestic markets.
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Source: Risk.net
SGX introduces new Asian Index Futures
November 12, 2013--Singapore Exchange (SGX) is pleased to introduce three new Asian Index Futures to provide investors wider access to almost all of Asia's key capital and growth markets.
The new contracts, namely the SGX-PSE MSCI Philippines Index Futures, SGX MSCI Thailand Index Futures and SGX MSCI India Index Futures, complement SGX's extensive suite of equity derivatives offerings. In addition, it provides global investors deeper and more extensive reach into Asia's emerging markets. The three new contracts will commence trading from 25 November 2013.
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Source: Singapore Exchange (SGX)
China to let private investors hold up to 15 pct in state firms-report
November 11, 2013--China will allow private investors to buy up to 15 percent stakes in state-own enterprises (SOEs), the official China Daily reported, as Beijing moves to leverage private funds to avoid having to bail out heavily indebted state owned firms.
Chinese leaders are gathered in Beijing this week to establish the economic blueprint for the next 10 years and the State-owned Assets Supervision and Administration Commission (SASAC), which administers more than a hundred of China's biggest state-owned companies, has said reform of SOEs as a major area of focus.
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Source: Reuters
ETF net jumps 23.1 through Oct.
November 11, 2013--South Korea's exchange-traded funds (ETFs) saw its net assets value jump 23.1 percent through October this year, data showed Monday, as more investors sought after safer investment destinations.
The combined net assets of ETFs in South Korea came to 18.78 trillion won ($17.62 billion) at end-October, compared to the 15.25 trillion won tallied at end-January, according to the data by the main bourse operator Korea Exchange.
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Source: YON HAP News Agency
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-Inflows in Asia-Pac driven by Japan focused ETFs
November 11, 2013--Data in this report is as of 31st October 2013
Global Summary
Markets across the globe reacted positively in October after delay in the tapering of the US Federal Reserve's asset purchase programme and stronger economic data from Europe and China. Global ETP AUM was favourably impacted by this and rose by $94bn to $2.2 trillion (+19.2% YTD) last month. Asia-Pacific ETP AUM added $1.8bn and closed the month at $165.3bn (+23.4% YTD).
Investors' appetite for risky assets remained strong during October. Global ETP industry continues with strong monthly fund flows recording +$31bn of inflows in October. US domiciled ETFs remain major contributor receiving +$28.3bn of positive flows, followed by Europe with +$4bn and Asia with +$1.3bn flows. Globally, equities saw Inflows of +$34.6bn while commodities and fixed income asset classes witnessed outflows of -$2.8bn and -$1.3bn respectively.
Monthly Trends – Asia Pacific
Market Review
Last month, major equity markets were mixed in the Asia-Pacific region. Compared to the month before, from north to south:
Japan (Nikkei 225) -0.88%
Korea (KOSPI2) +2.3%
China (CSI 300) -1.47%
Hong Kong (HSI) +1.52%
Singapore (FSSTI) +1.35%
Australia (S&P/ASX 200) +3.96%
ETPs flows: Japan focused ETFs continue to receive healthy inflows
Last month, Asia-Pacific ETP market observed +$1.3bn inflows and the YTD monthly flows average ended at +$1.4bn (+$14.2bn YTD in total flows). Total inflows were primarily contributed by equity ETFs collecting +$1.1bn of fund flows.
Within equity, on segment level, developed market (DM) benchmarked ETFs led the tally receiving inflows of +$1.7bn, while emerging markets (EM) ETFs experienced outflows of -$0.5bn. On a sub-segment level, the largest inflows recorded by ETFs came from those providing exposure to Japan (+$1.7bn). Conversely, China, Taiwan and Hong Kong focused ETFs saw outflows of -$0.3bn, -$0.3bn and -$0.1bn, respectively. Leveraged long strategy ETFs also recorded outflows of -$0.2bn in October.
Fixed income ETFs collected +$180mn of inflows in October. Among fixed income ETFs, sovereign ETFs witnessed the largest inflows (+$132mn)
Winners and losers: At ETP level, largest inflows were received by Nomura Nikkei 225 ETF (1321 JP), Nikko Exchange Traded Index 225 (1330 JP) and TOPIX ETF (1306 JP) collecting +$518mn, +$332mn and +$272mn respectively. Largest redemptions were experienced by Samsung KODEX Leverage ETF (122630 KS), Taiwan Top50 Tracker Fund (0050 TT) and Hang Seng H-Share Index ETF (2828 HK) with outflows of -$294mn, -$264mn and - $169mn respectively.
Last three months: ETFs focused on Japan & Hong Kong (DM) and China, Taiwan and South Korea (EM) witnessed significant fund flow activity in the last three months. Japan focused ETFs attracted +$5.6bn inflows from Aug'13 to Oct'13 while ETFs benchmarked to China and Taiwan recorded outflows of about $1bn over the same period.
Turnover: Floor activity down by 4.2% on a month-over-month basis
Asia-Pacific ETP turnover totaled $49.7bn for October, 4.2% down from the previous month's total. On a country level, stock exchanges in Japan topped the turnover ranking with aggregate turnover of $17.1bn, followed by South Korea ($14.5bn), China ($10.3bn) and Hong Kong ($5.9bn). Among equity ETFs, emerging country, leveraged long, Asia-Pacific developed country, and short ETFs were the most traded products recording total turnovers of $17.4bn, $16.1bn, $6.9bn, and $3.4bn respectively. Within fixed income, turnover for sovereign ETFs totaled $2.3bn, while among commodity ETPs, gold ETPs recorded $0.3bn of turnover.
AUM- Assets added $1.8bn in October
Last month, Asia-Pacific ETP AUM added $1.8bn and closed the month at $165.3bn. On a year-to-date basis, Asia-Pacific ETP market is up by $31.4bn or 23.4% above last year's closing.
New ETP launches-10 new products
Asia-Pacific ETP market registered 10 new product launches during October including eight equity and two multi asset ETFs. Within equity, Van Eck Funds listed four sector ETFs (MVB AU, MVE AU, MVA AU & MVR AU) on the Australian Securities Exchange providing exposure to Australian banking, real estate, energy and mining sectors. Mirae Asset MAPS Global Investments also listed one sector ETF (182480 KS) tracking MSCI US REIT Index on the Korea Stock Exchange. Another sector ETF (159933 CH) was listed by UBS on the Shenzhen Stock Exchange focused on China's financial and property sector. E Fund Management (3120 HK) and Dacheng Fund Management (159932 CH) each listed one China focused ETF on the Hong Kong Exchange and Shenzhen Stock Exchange. The ETF listed by E Fund Management is the ninth RQFII equity ETF launched in the Asia-Pacific ETP market. Further, KB Asset Management listed two multi asset ETFs (183700 KS and 183710 KS) on the Korea Stock Exchange providing exposure to the mix of Korean equities and bonds.
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Source: Deutsche Bank -Synthetic Equity & Index Strategy -Asia