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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 Exit polls charge up stocks, rupee view more PHL warming up to Asean common capital market view more Japan approves $182 bln economic package view more China bars banks from handling bitcoins
Bitcoins are created, distributed, and authenticated independently of any bank or government. Their relative anonymity holds out the promise of being able to spend money across the Internet without scrutiny. view more Singapore: Detailed Assessment of Implementation-IOSCO Objectives and Principles of Securities Regulation Singapore devotes considerable resources to ensuring that its standards and their application match global best practice. The regulation of collective investment
schemes places strong emphasis on MAS’s gatekeeper role and MAS seeks to ensure that it
is well informed about all sectors of this market including hedge funds managed from and offered for sale in Singapore. Self-regulationby exchanges remains an integral part of the regulatory framework. There are no restrictions on foreign firms operating in Singapore. although the a
ssessors identified some vulnerabilities which need to be resolved. The Monetary Authority of Singapore’s (MAS') enforcement philosophy as regards securities markets and the financial intermediaries active therein is cogent,
outcomes-focused and well developed. Its enforcement statistics indicate that it has a
reasonable success rate in the cases it brings. The Securities and Futures Act (Cap. 289) (SFA)
provides an effective framework to enable the sharing of information and cooperation
between MAS and foreign regulators on supervisory and enforcement matters. There is a reasonable level of protection of shareholders in Singapore and accounting and auditing standards are high. Singapore devotes considerab
le resources to ensuring that its standards and their application match global best practice. The regulation of collective investment schemes places strong emphasis on MAS’s gatek
eeper role and MAS seeks to ensure that it is well informed about all sectors of this ma rket including hedge funds managed from and offered for sale in Singapore. Self-regulation by exchanges remains an integral part of the
regulatory framework. There are no restrictions on foreign firms operating in Singapore. CASS: 2013 economic blue book published view more PSE eyes more products to sustain stock market's growth momentum view more
SGX, HKEx to promote internationalisation of renminbi Often compared and regarded as rivals, SGX and HKEx surprised the market with a new collaboration covering the areas of new technology, regulation, and joint product development.
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
Sensex, Nifty surge, but shed some of their gains
December 6, 2013--The exit poll projections that the Bharatiya Janata Party (BJP) could win in four of the five states where Assembly elections concluded on Wednesday came as a shot in the arm for Indian shares and the rupee on Thursday. Foreign institutional investors (FIIs) boosted purchase of local shares, while NSE's volatility index (VIX), a measure for the market's perception of near-term risks, plunged on hopes BJP would turn out to be the winner when the actual poll results were announced on Sunday.
Foreign institutional investors (FIIs) boosted purchase of local shares, while NSE’s volatility index (VIX), a measure for the market's perception of near-term risks, plunged on hopes BJP would turn out to be the winner when the actual poll results were announced on Sunday.
Source: The Business Standard
December 6, 2013--The Philippines has firmed up plans to join Association of Southeast Asian Nations'(Asean) bid for capital market integration, a move meant to establish brand recognition for the region as an asset class.
In a statement, the Securities and Exchange Commission (SEC) said it hosted a consultative meeting with various market participants on November 27 to discuss the Asean Disclosure Standards and Review Framework that will facilitate multi-jurisdiction offering of equities and bonds.
Source: Business Mirror
December 5, 2013--Japanese Prime Minister Shinzo Abe's cabinet approved a $182 billion economic package on Thursday to pull the economy out of deflation, but doubts remain about the economic impact.The package has a headline value of 18.6 trillion yen ($182 billion), which is an exaggerated figure as the bulk of the package includes loans from government-backed lenders and spending by local governments that was already scheduled.
The core of the package is 5.5 trillion yen in spending measures Abe ordered in October to bolster the economy ahead of a national sales-tax hike in April, and the government does not have to sell new debt to fund this spending. The package has raised concerns that Japan's government has not broken away from the stop-gap measures and piecemeal policymaking that some say has hampered long-term growth. "Market participants want the government to focus even more energy on economic policy," said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities. "Some of these items, like reconstruction from the earthquake, were already scheduled and don't really constitute an economic strategy."
Source: Todays Zaman
December 5, 2013--Bitcoins suffered a new setback after China's central bank said Thursday its banks and payment systems are barred from handling the virtual currency.
The central bank said bitcoins did not qualify as a currency but private individuals still are allowed to trade them at their own risk.
Source: Miami Herald
December 5, 2013--EXCUTIVE SUMMARY
Overall compliance with the International Organization of Securities Commissions (IOSCO)
Principles is generally high, although the a ssessors identified some vulnerabilities which need to be resolved. The Monetary Authority of Singapore’s (MAS') enforcement philosophy as regards securities markets and the financial intermediaries active therein is cogent,
outcomes-focused and well developed.
Its enforcement statistics indicate that it has a
reasonable success rate in the cases it brings.
The Securities and Futures Act (Cap. 289) (SFA) provides an effective framework to enable
the sharing of information and cooperation between MAS and foreign regulators on supervisory and enforcement matters. There is a reasonable level of protection of sharehol
ders in Singapore and accounting and auditing standards are high.
December 5, 2013--China's top think tank published its Economic Blue Book in Beijing on Wednesday. The book suggests the government should maintain a stable fiscal policy and prudent monetary policy next year despite expectations for slower economic growth.
Allowing a slower but healthier growth rate-that's the message from the annual economic blue book released by the Chinese Academy of Social Sciences
Source: cntv.cn
December 4, 2013--The operator of the country's sole stock seeks to sustain the growth momentum in market activity through investor-friendly rules and products.
The newly-introduced Philippine Stock Exchange (PSE) and the Singapore Exchange (SGX) index futures and soon-to-be-launched shariah list, as well as several new rules will stimulate investor appetite, its top official said.
Source: The Philippine Star
December 4, 2013--Two of Asia's biggest exchanges, the Singapore Exchange (SGX) and the Hong Kong Exchanges and Clearing (HKEx) will cooperate to promote the internationalisation of the renminbi.
The Singapore Exchange (SGX) and the Hong Kong Exchanges and Clearing (HKEx) on Wednesday signed a memorandum of understanding (MOU) to leverage each other's strengths and capture more of Asia's growth.
Source: Channel News Asia
