China to launch offshore renminbi fund
May 15, 2013--China is set to push its currency deeper into global capital markets with the launch of the country's first-ever privately managed fund that invests in offshore renminbi assets.
Highland Capital Management, a newly formed company backed by the Yunnan provincial government, is seeking to raise up to Rmb15bn ($2.4bn) in its first fund and will focus on investments in southeast Asia.
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Source: FT.com
Akshaya Tritiya hard sell boosts gold ETF trade 14%
Amidst liquidation of gold exchange traded funds in the global markets, Indian investors went on a buying spree with exchanges recording 14% jump in trade in one day.
May 15, 2013--Bourses in India pulled out all the stops to attract investors to gold Exchange Traded Funds on the occasion of the Akshaya Tritiya festival, by waiving off charges and extending trading hours.
It is considered auspicious to buy gold on Akshaya Tritiya. Exchanges and fund houses said they were looking to cash in on the opportunity by hard-selling gold ETFs, since many Indian investors had redeemed their ETFs since the start of the year.
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Soure: Mineweb
ETF investor growth overshadows adviser usage
May 14, 2013--The number of Australian investors using exchanged-traded funds (ETF) grew rapidly in 2012 and that growth was expected to be mirrored in 2013, but the rise in adviser usage was minimal in comparison, according to an ETF report released yesterday.
The “BetaShares/Investment Trends ETF Report” found there were an estimated 69,500 ETF investors at the end of 2012, an increase of 15 per cent on the previous year. The number of investors was tipped to hit 79,000 by the end of this year, the report found.
If the midpoint of the forecasts were achieved, that would represent a 13 per cent increase for 2013.
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Source: Financial Observer
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-ETP assets breaches $150bn after weekly inflows of $3.8bn
May 14, 2013--Market Review
Last week, all the major markets in the Asia-Pacific region remained in positive territory except Korea. Compared to the week before, from north to south, Japan (Nikkei 225) appreciated by 6.67%, Korea (KOSPI2) slid by 1.29%, China (CSI 300) was up by 1.92%, Hong Kong (HSI) rose by 2.78%, Singapore (FSSTI) increased by 2.19%, and Australia (S&P/ASX 200) advanced by 1.49%.
New Product Launch Review
Last week, seven new products were launched in the Asia-Pacific ETP market. China Asset Management listed five sector ETFs (510660 CH, 510650 CH, 510630 CH, 510620 CH & 510610 CH) on the Shanghai Stock Exchange focused on China’s healthcare, financials, consumer staples, materials and energy sectors respectively. Simplex Asset Management listed two strategy based equity ETFs (1579 JP & 1580 JP) on the Tokyo Stock Exchange providing leveraged long and short exposure on Nikkei 225 Index respectively.
ETP Weekly Cash Flows
The total Asia-Pacific ETP flows from all products experienced +$3.8bn (+2.6% of AUM) of healthy inflows during last week vs. -$147mn (-0.1%) of outflows the previous week, setting the YTD weekly flows average at +$300mn (+$5.7bn YTD in total cash flows). Equity ETFs recorded inflow of +$3.7bn while fixed income ETFs registered inflows of +$122mn. ETPs offering exposure to Japan registered massive inflows of +$4.1bn, while China and Hong Kong registered outflow of -$148mn and -$134mn respectively. Leveraged long equity ETFs also experienced outflows of -$160mn over the last week.
Turnover Review
Asia-Pacific ETP turnover totaled $12.3bn for the last week, 89.5% up from the previous week’s total. South Korea continued to be on the top of the turnover ranking with $3.6bn turnover, followed by Japan ($3.1bn), China ($2.9bn) and Hong Kong ($2.3bn). Among equity ETFs emerging country, leveraged long, Asia-Pacific developed country, and short ETFs had total turnovers of $4.9bn, $2.9bn, $2.2bn, and $0.7bn respectively. Among the commodity asset class, turnover in gold ETPs totaled $103mn.
Assets under Management Review
Last week, Asia-Pacific ETP AUM increased by $6.4bn, and ended at $151.9bn. On a year-to-date basis, Asia-Pacific ETP market is up by $15.9bn or 11.7% above last year’s closing.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - Asia
JPX Group and Nikkei Agree on Joint Development of New Index
May 14, 2013--Japan Exchange Group, Inc., Tokyo Stock Exchange, Inc. (JPX Group) and Nikkei Inc. (Nikkei) have agreed to jointly develop a new stock price index for the purpose of contributing to the further development and vitality of the Japanese securities market
on the occasion of the merger of the Tokyo and Osaka equity markets.
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Source: Tokyo Stock Exchange
TSE-ETF/ETN Monthly Report for Apr 2013
May 9, 2013--Monthly trading value surged past previous market record with over 50% monthly gain!
The ETF/ETN market remained robust in April with monthly trading value surging past the record since market launch to 1,290 billion yen.
Intraday value also surpassed the 100 billion yen mark for the first time, reaching 124.1 billion yen on April 5.
Huge fluctuations in gold prices this month led to a large increase in the trading of ETF tracking the metal. "SPDR® Gold Shares (1326)," "Gold-Price-Linked Exchange Traded Fund (1328)," and "Japan Physical Gold ETF (1540)" showed monthly gains of 403%, 271%, and 145% respectively.
view the TSE-ETF/ETN Monthly Report for Apr 2013
Source: TSE (Tokyo Stock Exchange)
DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-ETP AUM in Asia added $4bn after outflows, Global ETP assets reached $2 trillion
May 8, 2013--Monthly Trends-Asia Pacific
Market Review
Last month, Asia-Pacific region had mixed markets. Compared to the month before, from north to south Japan (Nikkei 225) rose by 11.8%, Korea (KOSPI2) slid by 2.91%, China (CSI 300) dropped by 1.91%, Hong Kong (HSI) advanced by 1.96%, Singapore (FSSTI) up by 1.82%, and Australia (S&P/ASX 200) increased by 4.52% over the previous month.
New ETP launches
Last month, three new ETPs were launched in the Asia-Pacific ETP market. Krung Thai Asset Management listed one sector ETF (EFOOD TB) on Stock Exchange of Thailand tracking SET Food and Beverage Index. China Southern Fund Management listed one country ETF (159925 CH) on Shenzhen Stock Exchange tracking CSI 300 Index. Yinhua Fund Management listed one money market ETF (511880 CH) on the Shanghai Stock Exchange. Further, Deutsche Bank listed share classes of its five existing equity ETFs on Hong Kong Exchange during the month.
ETP Monthly Cash Flows
During the month of April, Asia-Pacific ETP market experienced monthly cash outflows of -$163mn setting the YTD monthly flows average at +$469mn (+$1.9bn YTD in total cash flows). Emerging market equity ETFs recorded outflows of -$1.2bn while strategy based equity ETFs registered inflows of +$0.8bn. At sub-segment level, leveraged long ETFs, South Korea focused, and financial sector ETFs recorded inflows of +$1bn, +$263mn, and +$176mn respectively. China, Japan focused and short strategy ETFs experienced outflows of -$1.4bn -$179mn and -$170mn respectively during April. Sovereign ETFs gained traction with inflows of +$242mn over the same period.
ETFs focused on Japan & Hong Kong in DMs and China, Taiwan and South Korea in EMs witnessed significant cash flow activity in the last three months. Japan focused ETFs alone attracted +$1.6bn inflows during Feb’13 to Apr’13 while ETFs benchmarked to China recorded outflows of -$1.9bn over the same period.
Turnover Review
Asia-Pacific ETP turnover totaled $51.8bn for last month, 1% up from the previous month’s total. South Korea remained on the top of the turnover ranking with $16.8bn turnover, followed by Japan ($13.2bn), Hong Kong ($10.1bn), China ($9.8bn), and India ($0.8bn), Among equity ETFs, the emerging country, leveraged long, Asia-Pacific developed country, and short ETFs had total turnovers of $22.3bn, $11.3bn, $9.1bn, and $3.4bn respectively. Among the commodity asset class, turnover in gold ETPs totaled $869mn.
Asset under Management Review
Last month, Asia-Pacific ETP AUM increased by $4bn and ended at $146.4bn. On a year-to-date basis, Asia-Pacific ETP market is up by $10.4bn or 7.7% above last year’s closing.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - Asia
Exchange-traded Australian Government Bonds to commence trading on ASX
May 8, 2013--The Australian Securities Exchange (ASX) announces that Exchange-traded Australian Government Bonds (AGBs) will be available for trading on ASX on 21 May 2013, giving retail investors access to buy and sell these products as easily as shares.
Exchange-traded AGBs offer a convenient and readily accessible way to invest in bonds issued by the Australian Government. Bonds are fixed income, interest rate investments that provide a regular income stream and the opportunity for the investor to receive the investment’s face value at maturity. They add to the diversity of investment products available to retail investors.
Exchange-traded AGBs will be quoted and transacted on ASX in a similar way to shares, with each bond quoted as a gross price (capital plus accrued interest) with a face value of $100.00.
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Source: ASX
Taiwan authorities consider raising investment quota for China's QDII firms
May 8, 2013--Taiwan's Executive Yuan will hold a meeting on Wednesday (May 8) to evaluate the possibility of raising the investment quota on the QDII scheme, according to report from Economic Daily News.
Under the existing QDII framework, Mainland QDII institutions are allowed to invest up to US$500 million into Taiwan’s market. Earlier this year, the Financial Supervisory Commission (SFC) and its PRC counterparts held talks to study the feasibility of increasing the quota to $1 billion.
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Source: Asia Asset
Japan's Nikkei tops 14,000 for first time since 2008
May 7, 2013--Japan's Nikkei has continued its surge, rising above the 14,000 mark for the first time since June 2008.
The benchmark index rose 3.6% to 14,180 on its first day of trading after the Golden Week holiday.
Japanese markets have jumped recently after its central bank unveiled aggressive moves, including doubling the money supply, to spur growth.
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Source: BCC