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DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-Inflows across DM and EM ETFs
December 12, 2013--Data in this report is as of 6 December 2013.
Market Review
Last week, all the major markets in the Asia-Pacific region remained in negative territory except China. Compared to the week before, from north to south:
Japan (Nikkei 225) -2.31%
South Korea (KOSPI2) -3.29%
China (CSI 300) +0.55%
Hong Kong (HSI) -0.58%
Singapore (FSSTI) -1.96%
Australia (S&P/ASX 200) -2.52%
New Product Launch Review
Last week, two new products were launched in the Asia-Pacific ETP market. First Metro Asset Management listed one equity ETF (FMETF PM) on the Philippine Stock Exchange providing exposure to the equity market of Philippines. This is the first ETF launch in the Philippines Stock Exchange. Wanjia Asset Management listed its first ETF tracking SSE 380 Index on the Shanghai Stock Exchange.
ETP Weekly Flows-Inflows across DM and EM ETFs
Last week, Asia-Pacific ETP market recorded inflows of +$0.7bn vs. +$1.0bn of inflows for the previous week, setting the YTD weekly flows average at +$0.3bn (+$14.8bn YTD in total flows). Developed markets equity ETFs collected weekly inflows of +$396mn while emerging markets equity ETFs collected +$312mn of inflows over the last week. On a country level, ETFs benchmarked to Japan and South Korea received inflows of +$400mn and +$244mn respectively.
Winners and losers: At ETP level, Maxis Nikkei 225 ETF (1346 JP), CSOP FTSE China A50 ETF (82822 HK) and Mirae Asset MAPS TIGER 200 ETF (102110 KS) were the largest flows receivers of the week collecting +$335mn, +$302mn and +$208mn respectively. Over the same period, biggest outflows were experienced by iShares Nikkei 225 (1329 JP) and Samsung KODEX Leverage ETF (122630 KS) recording -$80mn and -$57mn of outflows respectively.
Turnover Review-Floor activity up by 11.7%
Asia-Pacific ETP turnover totaled $17.8bn for the last week, 11.7% up from the previous week’s total. Stock exchanges in Japan remained on the top of the turnover ranking with $7.1bn turnover, followed by South Korea ($4.1bn), China ($4.0bn) and Hong Kong $2.0bn. Among equity ETFs, leveraged long strategy, emerging country, Asia-Pacific developed country and short strategy ETFs had total turnover of $6.5bn, $5.9bn, $2.3bn and $0.9bn respectively. Within fixed income asset class, turnover in sovereign and money market ETFs totaled $1.2bn and $0.2bn respectively.
Assets under Management Review-Assets decreased by $1.8bn
Last week, Asia-Pacific ETP AUM decreased by $1.8bn and ended the week at $166bn. On a year-to-date basis, Asia-Pacific ETP market is up by $30.1bn or 22.1% above last year’s closing.
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Source: Deutsche Bank-Synthetic Equity & Index Strategy-Asia
India Poised to be a Global Leader in the Development of Solar Power, Says New World Bank Report
Inadequate finance, lack of shared infrastructure and constraints to supply chain key barriers to scaling up
December 12, 2013--Launched in 2010, the Jawaharlal Nehru National Solar Mission Phase 1 (JNNSM) is well-poised to make India a global leader in the development of solar power. In a span of three years, India has taken a significant step forward in implementing its green growth agenda by increasing its installed capacity of solar power from around 30 MW to more than 2,000 MW, says a new World Bank report.
What is significant is that JNNSM has been instrumental in bringing down the cost of solar power to a level that is competitive across the world, says the report. It has reduced the costs of solar energy to $0.15 per kWh, making India amongst the lowest cost destinations for grid-connected solar Photovoltaic (PV) in the world.
view the Paving the Way for a Transformational Future
Lessons from Jawaharlal Nehru National Solar Mission Phase
Source: World Bank
China yuan hits new record high against USD
December 11, 2013--The Chinese currency Renminbi, or the yuan, rose to a fresh record high against the US dollar for the fourth consecutive trading day on Wednesday.
The yuan rose 14 basis points to reach 6.11 per US dollar,the strongest since July 2005, when the country launched reforms of the exchange rate mechanism, according to the China Foreign Exchange Trading System.
The People's Bank of China on Tuesday set the dollar-yuan central parity rate at 6.1114, stronger than Monday's 6.113 and Friday' s 6.1232. This was in line with broad dollar weakness despite better-than-expected US job data released on Friday and also came after strong Chinese exports data over the weekend.
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Source: China Daily
The retroactive index value of JPX-Nikkei Index 400
December 10, 2013--Japan Exchange Group, Inc. and Tokyo Stock Exchange, Inc., and Nikkei Inc. will start to calculate "JPX-Nikkei Index 400" from January 6, 2014.
The index values of JPX-Nikkei Index 400 were calculated retroactively from August 30, 2013 (base date for index calculation) until December 6 on an end-of-day basis, which were published on December 10 as follows.
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Source: Tokyo Stock Exchange
SGX and Thomson Reuters launch Bond Indices for Benchmarking Investment Performance
December 10, 2013--Comprehensive index series for Singapore bonds supports market participants' need for independently priced investments
Singapore Exchange (SGX) and Thomson Reuters today announced the launch of a suite of Singapore dollar (SGD) bond indices designed to meet the needs of fund managers, asset owners and custodians in benchmarking investment performances.
The new index series is the only complete government, statutory board and corporate bond index series to provide five years of historical data. This offers market participants a powerful barometer of fixed income returns across a multitude of segments.
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Source: Thomson Reuters
HK-China recognition: a Christmas present for HK?
December 10, 2013--The formal signing of the HK-China mutual recognition scheme could be completed this Christmas, believes Citi.
It wouldn't then take long for funds...
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Source: Asian Investor
Schwab founder met with China officials about Shanghai office
December 9, 2013--Charles Schwab traveled to China in September to discuss opening an office of his eponymous securities firm in Shanghai.
"There's a massive opportunity there, they are very underserved," the 76-year-old founder of Charles Schwab Corp said in a meeting Monday with Reuters reporters and editors.
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Source: Reuters
Bosera selects FTSE China A50 Index for first RQFII ETF
December 9, 2013--FTSE Group has licensed the FTSE China A50 Index to Bosera Asset Management (International) Co. as the basis of their first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF. The Bosera FTSE China A50 Index ETF, listed on Hong Kong Exchanges and Clearing on December 9.
ETFs representing China A-shares offer investors a channel to participate in the growing Bluechip market in China.
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Source: The Asset
DB-Synthetic Equity & Index Strategy-Asia-Pac Monthly ETF Market Review-ETP AUM reaches at an all time high level
December 9, 2013--Data in this report is as of 29th November 2013
Global Summary
Global ETP assets rose by $36.4bn (+21.1% YTD) and closed the month at an all time high $2.2 trillion. ETP assets across all the regions are at their highest level with 23.5%, 11.7% and 23.5% YTD growth for US, Europe and Asia regions respectively.
Global ETP industry continues to attract positive monthly flows recording +$16.4bn of inflows in November. US domiciled ETFs remain major contributor receiving +$12.9bn of positive flows, followed by Europe with +$3.6bn flows. Fund flows were flat in Asia region with -$64mn of outflows. Globally, equities saw inflows of +$17.6bn, followed by fixed income (+$0.4bn) while commodities witnessed outflows of -$1.8bn.
Year-to-date snapshot-Asia Pacific
AUM: Moving towards the year end, Asia-Pac ETP industry has recorded asset growth of 23.5% ($32bn) year-to-date and closed the month at record $167.9bn. Growth was primarily seen among ETFs focusing on Japanese equity markets (including all equity segments) witnessing close to 60% ($28.1bn) rise this year, fueled by sharp rise (+50.7%) in Nikkei 225 (NKY).
Turnover: At the end of last month, monthly average ETP turnover for the current year stood at $53.7bn which is close to two times of the 2012 monthly average turnover ($27.1bn).
ETP flows: Asia-Pac domiciled ETPs have collected +$14.3bn of inflows so far (+10.5% of AUM) this year. Among developed markets ETFs, Japan country focused ETFs registered strong inflows of +$12.7bn YTD. Within emerging markets ETFs, China and Taiwan focused ETFs experienced outflows of - $3.3bn and -$0.6bn respectively, while South Korea benchmarked products collected +$0.8bn positive flows.
Among other equity sub-segments, financial sector, leveraged long strategy and dividend focused ETFs established their foothold recording +$1.1bn, +$1bn and +$0.6bn YTD flows. Inflows into leveraged long strategy ETFs were primarily driven by ETFs providing leveraged exposure to the Nikkei 225 (1570 JP), KOSPI 200 (122630 KS) and TOPIX (1568 JP).
Monthly Trends-Asia Pacific
Market Review
Last month, markets were mixed in the Asia-Pacific region. Japanese equity markets rallied amid weaker Yen. Compared to the month before, from north to south:
Japan (Nikkei 225) +9.31%
ETPs flows: South Korea focused ETFs lost -$0.7bn in outflows
Last month, Asia-Pacific ETP market observed negligible net fund flows with - $64mn of outflows vs. +$1.4bn of inflows in the previous month. YTD flows totalled +$14.3bn setting the monthly flows average at +$1.3bn.
At segment level, there was some activity within sector, EM, DM and strategy ETFs. Financial sector, China, Japan and Taiwan focused ETFs received inflows of +$320mn, +$296mn, +$269mn and +$209mn respectively. Conversely, ETFs focused on South Korea, leveraged long strategy and Hong Kong experienced outflows of -$735mn, -$278mn and -$162mn respectively.
Winners and losers: At ETP level, largest inflows were received by Daiwa ETF - Nikkei 225 (1320 JP), Nomura Nikkei 225 ETF (1321 JP) and CSOP FTSE China A50 ETF (82822 HK) collecting +$739mn, +$609mn and +$393mn respectively. Largest redemptions were experienced by Samsung KODEX 200 (069500 KS), Maxis Nikkei 225 ETF (1346 JP) and Nikko Exchange Traded Index 225 (1330 JP) with outflows of -$627mn, -$464mn and -$404mn respectively.
Turnover: Floor activity up by 24.3% on a month-over-month basis
Asia-Pacific ETP turnover totaled $61.8bn for November, 24.3% up from the previous month's total. On a country level, stock exchanges in Japan topped the turnover ranking with aggregate turnover of $24.2bn, followed by South Korea ($14.7bn), China ($12.1bn) and Hong Kong ($9.1bn). Among equity ETFs, leveraged long strategy, emerging country, Asia-Pacific developed country, and short strategy ETFs were the most traded products recording total turnovers of $22.1bn, $21.1bn, $8.6bn, and $3.7bn respectively. Within fixed income, turnover for sovereign ETFs totaled $3bn, while among commodity ETPs, gold ETPs recorded $0.3bn of turnover.
AUM - Assets added $3.2bn in November
Last month, Asia-Pacific ETP AUM added $3.2bn and closed the month at $167.9bn. On a year-to-date basis, Asia-Pacific ETP market is up by $32bn or 23.5% above last year's closing.
New ETP launches-Six new products
Asia-Pacific ETP market registered six new product launches during November. State Street GA listed three equity ETFs on the Australian Securities Exchange (ASX) providing exposure to the globally listed highest dividend yielding companies (WDIV AU), real estate securities (DJRE AU) and large and mid cap emerging markets stocks (WEMG AU) respectively. Vanguard listed one equity ETF tracking FTSE Emerging Markets Index (VGE AU) on ASX. Reliance Capital Asset Management launched India focused equity ETF on the National Stock Exchange (India). Hang Seng Investment Management listed one RQFII ETF on the Hong Kong Exchange providing exposure to the China A share market (83128 HK). This the 10th RQFII ETF launched so far in the Asia Pacific ETP market. request report China banks face up to capital delays view more If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
Korea (KOSPI2) +1.00%
China (CSI 300) +2.75%
Hong Kong (HSI) +2.91%
Source: Deutsche Bank-Synthetic Equity & Index Strategy-Asia
PBoC slow to approve subordinated bond issues
Onshore bankers suspect regulator trying to curb lending
Banks may resort to preferred share issuance
December 9, 2013--A growing backlog of onshore subordinated bonds is putting Chinese lenders under pressure to find alternative sources of capital, potentially opening the door for the country's first preferred share issuance.
China's banks have announced plans to issue Rmb327.7bn (US$53.8bn) of Tier 2 bonds to top up their Basel III capital, according to regulatory filings and company sources. The People's Bank of China has been slow to grant approvals, however, and only one lender has issued Tier 2 debt in the local market since China adopted Basel III rules at the start of 2013.
Source: Reuters
