IMF report-India: Financial System Stability Assessment Update
January 15, 2013--This report summarizes the findings of the Financial Sector Assessment Program (FSAP) for India. The assessment was
undertaken in June and October 2011. The findings were further discussed with the authorities during the Article IV consultation mission in January 2012.
The key macro-relevant findings of the Financial System Stability Assessment (FSSA) are as follows:
India has made remarkable progress toward developing a stable financial system but confronts a build-up of financial sector vulnerabilities.
The system is becoming more complex, with interlinkages across institutions and borders. The main near-term risks to the financial system are a worsening of bank asset quality and renewed pressures on systemic liquidity. However, stress tests did not reveal near-term stability concerns, suggesting the banking system would be
resilient to a range of adverse shocks.
The prominent role of the state in the financial sector contributes to a build-up of fiscal contingent liabilities and creates a risk of capital misallocation that may constrain economic growth. Gradually reducing mandatory holdings of government securities by financial institutions, and allowing greater access to private (domestic and foreign) sources of capital, would provide more room for the financial sector to intermediate funds toward productive economic activities, thereby improving prospects for sustained growth.
View the IMF report-India: Financial System Stability Assessment Update
Source: IMF
DB-Synthetic Equity & Index Strategy-Asia-Asia-Pac ETF+ Monthly Directory-December 2012 ETPs
January 15, 2013--This document includes all Asia-Pacific listed exchange-traded funds (ETFs) and exchange-traded commodities (ETCs). The directory is organized by country and asset-class-related sub sections.
Within each sub section it has been sorted by ETP issuer by alphabetical order and by AUM in descending order. A number of key information points per product have been included in order to enable the reader to get an overview in their own area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US).
request report
Source: Deutsche Bank -Synthetic Equity & Index Strategy-Asia
HKEx Revises its Plan for Options on CSOP A50 and CAM CSI300 ETFs
January 14, 2013--Hong Kong Exchanges and Clearing Limited (HKEx) has revised its planned options on Hong Kong dollar-traded units of the CSOP FTSE China A50 (CSOP A50) ETF and ChinaAMC CSI 300 Index (CAM CSI300) ETF, two Exchange Traded Funds (ETFs) with A shares as their underlying benchmark, to reduce trading costs.
The rollout date has also been revised to Monday, 28 January 2013 from Monday, 21 January.
The contract sizes have been increased from 200 shares to 5,000 for CSOP A50 Options and 200 to 2,000 shares for CAM CSI300 Options, and the Trading Tariff (per contract) was adjusted to $3 per contract to reflect the larger contract sizes.
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Source: Hong Kong Exchanges and Clearing Limited (HKEx)
To Develop a More Open and Inclusive Capital Market in China
Guo Shuqing-Chairman of China Securities Regulatory Commission
January 14, 2013--Good morning, Ladies and Gentlemen,
It is a great pleasure to attend the Asian Financial Forum. I would like to extend my sincere thanks to the organizer for inviting me and allowing me to share with you our experiences and views.
First, let me update you the latest development of the capital market in China.
Our capital market is a product of reform and opening up. Currently, the stock market capitalization, the balance of bonds and the trading volume of commodity futures all rank among top markets globally. We can say that, China spent only 20 years to travel the journey which took Europe and North America 200 years. However, like all metaphors, it is not exactly accurate.
Our market is full of vitality. Electronic trading technology has been adopted since the capital market's inception in the early 1990s. E-trading makes it easy for investors to participate, thus a huge number of investors have come to trade. In the A-share market alone, there are 78 million retail investors, with over 168 million trading accounts. If we take their families into consideration, then the stock market involve around 200 million people.
Our market has great prospects. China has almost the highest savings rate in the world. Even calculated at the current exchange rate, China’s total annual savings is about 4 trillion US dollars, far ahead of other countries.
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Source: China Securities Regulatory Commission
NYSE Technologies Extends Asia Footprint with Creation of NYSE Philippines Inc.
Creates a new 'Center of Excellence' in Manila with over 100 Employees
Further Strengthens Asia Presence and Enhances Local Service Offering
January 14, 2013--NYSE Euronext (NYX) announced today that it has completed its resource transfer from Fixasia Technologies Inc., a leader in technology solutions and support services, to a newly created subsidiary, NYSE Philippines Inc.
The new subsidiary will operate as a regional technology hub based in Manila. This enables NYSE Technologies to efficiently expand and rapidly diversify its Asia business while enhancing its 24x7 global support model and adding the unique expertise of the Fixasia team. Terms of the transfer were not disclosed.
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Source: NYSE Euronext
India tackles its costly gold addiction
January 14, 2013--It was no surprise that a deliberate threat at the start of this year by Palaniappan Chidambaram, Indian finance minister, to make gold "a little more expensive to import"
sent shudders through the international gold market.
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Source: FT.com
Swan chases bigger role in renminbi conversion
January 12, 2013--THE Treasurer, Wayne Swan, is expected to promote Australia's role in the internationalisation of the Chinese renminbi as he kicks off a visit to Hong Kong on Saturday.
The visit builds on a previous trip to Hong Kong last July, where Mr Swan established a joint Australia-Hong Kong renminbi trade dialogue. He also tested the waters over whether Australia could become just the third country allowed to directly convert its currency to the renminbi, also known as the yuan.
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Source: The Sydney Morning Herald
China Macro-A recovery supported by improved credit conditions
January 11, 2013--Total social financing reached Rmb15.76tn in 2012, up 22.9% from Rmb12.83tn in 2011, mainly due to a pick-up from June 2012 which coincided with the start of China's easing cycle.
The booming corporate bond market and the trust loan sector contributed about two thirds of this growth and the share of long-term loans also increased to 60.6% in 2H12 from an average of 45.4% in 1H12. Such an improvement in both the volume and structure of credit conditions will support China’s near-term growth. We believe China is heading for a recovery and we expect growth this year to return to the 8% range.
Total social financing grew by 22.9% in 2012
This is the fastest growth since China tightened its monetary policy in 2010. Total social financing picked up in June 2012, coinciding with the Chinese government’s switch to a more accommodative policy stance. Among its major components, trust loans and corporate bonds rose the most rapidly, and contributed two thirds to total social financing growth. Banking loans also increased slightly, while equity financing dropped by 42% in 2012.
view report-China Macro-
A recovery supported by improved credit
conditions
Source: Mirae Asset Management
Tokyo Stock Exchange-ETF/ETN Monthly Report for Dec 2012
January 11, 2013--Trading Value in the ETF/ETN Market Rose with Stock Price Gains
With the landslide victory of the LDP in the lower house general elections and their promises of ending deflation, expectations rose for monetary easing, leading to purchasing of widespread issues in the ETF/ETN market in December.
Daily average trading value rose greatly, gaining 53.36% on the previous month.
As the yen continued to weaken in foreign exchange markets, trading value increased for ETFs investing in overseas stocks/bonds, such as "Listed Index Fund International Developed Countries Equity (MSCI Kokusai) (Code: 1680)" and "Listed Index Fund International Bond (Citigroup WGBI) Monthly Dividend Payment Type (Code: 1677)."
view the Tokyo Stock Exchange-ETF/ETN Monthly Report for Dec 2012
Source: Tokyo Stock Exchange (TSE)
Pending cap on India block-trading raises fears
January 10, 2013--Sebi is set to impose limits on block-crossing,
but brokers and traders say it won't be effective in preventing a flash crash and will likely hurt execution and exacerbate volatility.
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Source: Asian Investor
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