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First RMB shares to start trading on SGX
July 25, 2013--Yangzijiang Shipbuilding will be the first company to have trading of its shares in Chinese Renminbi (RMB) on the Singapore Exchange's (SGX) dual currency trading platform, SGX announced Thursday.
Yangzijiang’s RMB-denominated shares will start trading on August 5.
HKFE Announces Revised Margins for iShares FTSE A50 China Index ETF Futures
July 25, 2013-- Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Monday, 29 July 2013, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contract will be as outlined in
the table below. The adjustments are based on the clearing company’s normal procedures and standard margining methodology.
State Street Global Advisors and Zhongrong International Trust Launch China Joint Venture
July 25, 2013--State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE: STT), today announced its joint venture with Zhongrong International Trust Co. Ltd (ZRT) in China.
Registered and principally located in Beijing, the joint venture (SSGA Fund Management Co. Ltd., will provide domestic China fund management activities including launching and managing securities investment funds for retail, high net worth and institutional clients. ZRT holds 51 percent of the company shares and State Street Global Advisors Asia Ltd. holds 49 percent. SSgA’s initial financial contribution is expected to be approximately $50 million.
Legal & General Investment Management Launches in Asia Pacific
July 24, 2013--Legal & General Investment Management ("LGIM"), one of Europe's largest institutional asset managers* and a major global investor, continues its strategy of international expansion with the launch of its business in the Asia Pacific region, headquartered in Hong Kong.
Led by Alan Flynn, Head of Asia Pacific, LGIM will provide index and fixed income solutions to large institutional clients across the region. John Bridges, who has relocated to Hong Kong, will take up the role of Head of Operations.
Legal & General Investment Management Launches in Asia Pacific
July 24, 2013--Legal & General Investment Management ("LGIM"), one of Europe's largest institutional asset managers* and a major global investor, continues its strategy of international expansion with the launch of its business in the Asia Pacific region, headquartered in Hong Kong.
Led by Alan Flynn, Head of Asia Pacific, LGIM will provide index and fixed income solutions to large institutional clients across the region. John Bridges, who has relocated to Hong Kong, will take up the role of Head of Operations.
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-ETP AUM contracted by $1.7bn
July 24, 2013--Data in this report is as of 19th July 2013.
Market Review
Last week, Asia-Pacific region had mixed markets. Compared to the week before, from north to south:
Japan (Nikkei 225) +0.58%
South Korea (KOSPI2) -0.28%
China (CSI 300) -3.73%
Hong Kong (HSI) +0.40%
Singapore (FSSTI) -0.70%
Australia (S&P/ASX 200) -0.04%
New Product Launch Review
During this month, Deutsche Bank AG launched a fixed income ETF (SH8 SP) on Singapore Exchange tracking Markit iBoxx ABF Indonesia Government bond Index. This is the first ETF which provides exposure to Indonesian sovereign bonds. Previously, Deutsche Bank AG has issued one equity ETF (XMIN SP) with a focus on Indonesian equity markets. Further, Blackrock cross listed its three equity ETFs (1582 JP, 1581 JP & 1583 JP) on Tokyo Stock Exchange tracking MSCI Kokusai, MSCI EM IMI and MSCI Frontier Markets 100 Index respectively. These ETFs are primarily listed in the US.
ETP Weekly Cash Flows-Negative flows over the week
Last week, Asia-Pacific ETP market experienced cash outflows of -$62mn vs. +$36mn of inflows for the previous week, setting the YTD weekly flows average at +$386mn (+$11.2bn YTD in total cash flows). Equity ETFs lost -$197mn in cash outflows while fixed income ETFs brought in +$130mn of inflows over the last week. On country level, ETFs benchmarked to Taiwan received +$198mn of cash inflows while China focused equity ETFs recorded -$123mn of cash outflows. Leveraged long equity ETFs also recorded weekly outflows of -$168mn over the same period.
At ETP level, Polaris MSCI Taiwan Index Fund (006203 TT) recorded largest inflows (+$150mn) while Daiwa Topix ETF (1305 JP) experienced largest outflows (-$123mn) for the week.
Turnover Review -Floor activity down by 6.8%
Asia-Pacific ETP turnover totaled $12bn for the last week, 6.8% down from the previous week’s total. South Korea took the lead in the turnover ranking with $3.7bn turnover, followed by Japan ($3.4bn), China ($2.9bn) and Hong Kong ($1.6bn). Among equity ETFs, Emerging Country, leveraged long, Asia-Pacific developed country and short ETFs had total turnovers of $4.5bn, $3.8bn, $1.4bn and $1bn respectively. Within the commodity asset class, turnover in gold ETPs totaled $41mn.
Assets under Management Review-Assets shrink by $1.7bn
Last week, Asia-Pacific ETP AUM decreased by $1.7bn, and ended the week at $153.4bn. On a year-to-date basis, Asia-Pacific ETP market is up by $17.4bn or 12.8% above last year’s closing.
BlackRock raises concern over China's sovereign debt strength
July 24, 2013--The sanctity of Chinese government debt has been called into question following the shrinking of the country’s current account surpluses.
That is according to the latest update for BlackRock’s Sovereign Risk Index (BSRI), which compares and contrasts the relative strength of 48 different nations’ sovereign bonds.
Hong Kong ETF turnover surges 80%
July 23, 2013--Trading of exchange-traded funds in the Hong Kong market increased 80% during the first half of 2013, compared with the previous six months, as investors flocked to access mainland Chinese stocks.
The average daily turnover of ETFs listed on Hong Kong Exchanges and Clearing reached HK$4.5 billion ($580 million) in the first six months of the year, compared with HK$2.5 billion in the second half of 2012, according to data published by local regulator the Securities Futures Commission on Friday.
IISL appointed index provider for proposed CPSE ETF
July 23, 2013--The department of disinvestment, in consultation with Goldman Sachs AMC, has appointed India Index Services & Products (IISL) as the index provider for the proposed CPSE ETF (central public sector enterprises-exchange traded fund), according to a media report.
Earlier this year, the Cabinet gave its approval to form the CPSE ETF for PSUs. The government plans to raise Rs. 50 billion through ETFs as a part of its Rs. 400 billion divestment plan in the current fiscal.
New ideas and education needed for ETF growth in Asia
July 24, 2013--Although inflows into Asia-Pacific ETF assets have risen by more than 50% in the past year, this is coming off a very low base.
The challenge for the various issuers is to convert interest into investment. According to the latest survey by Deutsche Asset & Wealth Management, 64% of investors say they are considering using Asian-listed ETFs as they trade in parallel trading hours to their respective market.
