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China companies face 'credit deterioration'
August 19, 2013--China's economic slowdown and indebtedness will cause the creditworthiness of the country's biggest companies to deteriorate in the coming year, Standard & Poor's has warned in a report.
The credit rating agency has examined the balance sheets of 151 major Chinese companies - three-quarters of which are state-owned enterprises – and noted that the recent investment boom has left the corporate sector with "a large debt hangover".
China broker probed for huge trade error
August 19, 2013--China's market regulator is investigating a domestic brokerage for a multi billion dollar trading glitch that briefly sent the benchmark stock index up more than 5% on Friday, it said.
The China Securities Regulatory Commission (CSRC) said late on Sunday that a "design defect" in the proprietary trading system of Everbright Securities caused the dramatic gain.
State drives ETF growth in India-
August 19, 2013--Growth in the exchange-traded fund industry in India is likely to accelerate on the back of government plans to launch an ETF and introduce regulatory changes.
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Australian ETF industry passes AUD8bn milestone
August 19, 2013--The Australian exchange-traded fund industry has passed the AUD8bn mark for the first time, according to figures released by ETF provider BetaShares.
The total value of ETFs trading on the Australian Securities Exchange (ASX) rose to AUD8.25bn in July, the 10th consecutive...
India goes back two decades as RBI imposes capital curbs to stabilise rupee
August 15, 2013--he Reserve Bank of India imposed partial capital controls on companies and individuals to stabilise the rupee, but the steps are likely to be perceived as turning the clock back on two decades of liberalisation.
Overseas direct investment (ODI) by Indian companies has been cut three-fourths, 100% from 400%, making it more difficult for local corporates to buy overseas assets.
Revival of equity listings boosts HKEx profit
August 15, 2013--Increased trading volumes and income from the London Metal Exchange helped Hong Kong's stock market operator record a 10 per cent rise in second-quarter profits.
Hong Kong Exchanges and Clearing, the world’s second-largest exchange operator by market value, on Thursday reported profits attributable to shareholders of HK$1.2bn (US$150m) in the three months to June 30.
Morningstar Publishes Guide about Investing in Chinese Equity Exchange-Traded Funds
August 15, 2013--Morningstar Asia Limited,, a subsidiary of independent investment research firm Morningstar, Inc. (MORN), has published a "Guide to Investing in Chinese Equities via ETFs," outlining the opportunities and risks investors face when accessing Chinese equities through exchange-traded funds (ETFs).
Authored by Morningstar's global ETF experts, the guide presents a comprehensive overview of global ETFs that offer exposure to Chinese equities, the nuances of investing in Chinese stocks, and the importance of an ETF's underlying exposure and relevant fundamentals. Key considerations for investors include:
view the Morningstar's Guide to Investing in Chinese Equities via ETFs report
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-Japan focused ETFs bring $1bn inflows
August 13, 2013--Data in this report is as of 9 August 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) -5.88%
South Korea (KOSPI2) -2.49%
China (CSI 300) +1.72%
Hong Kong (HSI) -1.73%
Singapore (FSSTI) -0.74%
Australia (S&P/ASX 200) -1.20%
New Product Launch Review
Last week, one new product was launched in the Asia-Pacific ETP market. Harvest Fund Management listed one fixed Income ETF (159926 CH) on Shenzhen Stock Exchange tracking medium term Chinese sovereign bonds. This is the second ETF listed in Asia-Pacific region providing exposure to Chinese sovereign bonds. Previously, Guotai Asset Management has issued one fixed income ETF (511010 CH) with a focus on 5-year Chinese sovereign bonds.
ETP Weekly Cash Flows -Japan received $1bn flows
Last week, Asia-Pacific ETP market recorded cash inflows of +$932mn vs. +$300mn of inflows for the previous week, setting the YTD weekly flows average at +$394mn (+$12.6bn YTD in total cash flows). Developed markets equity ETFs collected largest weekly cash inflows of +$1bn while Emerging markets ETFs lost -$203mn in cash outflows over the last week. On a country level, ETFs benchmarked to Japan received +$1bn of cash inflow while Taiwan experienced weekly outflows of -$133mn.
At ETP level, largest inflows were dominated by ETFs benchmarked to Japan where Nomura Nikkei 225 ETF (1321 JP), Nikko ETF Topix (1308 JP)) and Topix ETF (1306 JP) received weekly cash flows of +$220mn, +$190mn and +$182mn respectively. Over the same period, biggest outflows were experienced by Fubon MSCI Taiwan ETF (0057 TT) recording -$105mn of outflows.
Turnover Review – Floor activity up by 3.5%
Asia-Pacific ETP turnover totaled $12.2bn for the last week, 3.5% above from the previous week’s total. Japan took the lead in the turnover ranking with $4.8bn turnover, followed by Korea ($2.8bn), China ($2.7bn) and Hong Kong ($1.4bn). Among equity ETFs, leveraged long, emerging country, Asia-Pacific developed country and short ETFs had total turnover of $4.2bn, $3.9bn, $1.9bn and $0.8bn respectively. Within the commodity asset class, turnover in gold ETPs totaled $89mn.
Assets under Management Review – Assets lost $0.9bn
Last week, Asia-Pacific ETP AUM reduced by $0.9bn, and ended the week at $155.1bn. On a year-to-date basis, Asia-Pacific ETP market is up by $19.2bn or 14.1% above last year’s closing.
ETF Securities Precious Metals Weekly-Silver Shines on Optimistic Sentiment Shift
August 12, 2013--Precious metals increasingly pricing in potential for tapering of Fed bond
buying. A weaker US dollar, declining equity prices and improvement in Chinese
economic data supported precious metals (PMs) last week.
Silver led the PM sector higher, rallying 4.4% to end the week back above US$20/oz. Gold shrugged off what appeared to be coordinated fed-speak regarding potential tapering of the QE bond buying program in September, ending the week unchanged but above US$1,300/oz. Supported by improving global economic prospects and strong physical demand, the more industrial sensitive PMs also benefited from rising sentiment. Platinum bumped up against US$1,500 resistance
for the first time since June, gaining 3.9% on the week and widening its premium above gold to 14%. The PM market recovered from weakness earlier in the week, benefiting from a growing sentiment shift favouring the PMs relative to equities.
With the backdrop of very low equity volatility and the S&P 500 up 19% on the year compared to a 21% decline in gold, we expect the performance differential between gold and the S&P 500 to narrow rather than widen as the market increasingly prices in the reduction of US Federal reserve accommodation.
TSE-ETF/ETN Monthly Report for Jul 2013
August 9, 2013--Continued vibrancy pushes the ETF/ETN market to its third highest monthly trading value on record.
Trading in the ETF/ETN market continued to be active in July. Monthly trading value reached about 1.67 trillion yen with daily average of about 76 billion yen.
A monthly decline in the trading value of the ETF/ETN market did not affect the popularity of leveraged and inverse ETFs among investors. Trading of "NEXT FUNDS Nikkei 225 Leveraged Index ETF (1570)" remained robust with trading value in excess of 800 billion yen. The trading value of "Nikkei 225 Bull 2x ETF (1579)," which was newly listed in May, also rose significantly from last month.
Investors were drawn to certain issues, such as "NEXT NOTES HSI Leveraged ETN (2031)" whose trading value was boosted significantly by the rising Hang Seng Index.
