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Weak Institutions Blamed for India's Decline in Financial Development, Report Finds
World Economic Forum Financial Development Report 2012 shows India falling 4 places to 40th
Weak institutional, business environment and relative instability drag down otherwise strong performance
First place goes to Hong Kong for second year, with Singapore (4) and Japan (8) also in top ten
October 31, 2012--India's financial development remains at risk from the country's continued inability to create the institutional framework and business environment to support growth, according to the fifth edition of the World Economic Forum's Financial Development Report 2012 released today.
The report highlighted a poor record in enforcing contracts, low levels of liberalization, inadequate IT and communication infrastructure and general high costs of doing business as areas that most urgently needed improvement.
While India's comparative strength in the area of non-banking financial services was recognized with a global ranking of 9th in this particular pillar, its overall decline sees it rank 9th out of the 15 Asia Pacific economies that were surveyed in the Report.
view The Financial Development Report 2012
TSE has published the index value of TSE Home Price Index for August.
October 30, 2012--The index value of TSE Home Price Index (Used Condominium, Composite of Tokyo Metro Area) is 76.39 points. The index value of TSE Home Price Index (Used Condominium, Tokyo) is 80.24 points.
The index value of TSE Home Price Index (Used Condominium, Kanagawa) is 76.27 points. The index value of TSE Home Price Index (Used Condominium, Chiba) is 66.00. The index value of TSE Home Price Index (Used Condominium, Saitama) is 65.18 points.
Report on the Australian OTC Derivatives Market-October 2012
October 30, 2012--The Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Reserve Bank of Australia are releasing a Report on the Australian OTC Derivatives Market-October 2012.
This report reviews the risk management practices of market participants in the domestic over-the-counter (OTC) derivatives market. A particular focus of the report is how market participants are using centralised infrastructure, and the prospects for increased usage.
It reiterates the regulators' view that there are strong in-principle benefits from participants in the domestic OTC derivatives market making greater use of centralised infrastructure, such as trade repositories, central counterparties and trading platforms. The regulators recognise, however, that the suitability of using centralised infrastructure will not be the same for all products and participants. The main recommendations of the report are that:
the Australian Government consider a broad-based mandatory trade reporting obligation for OTC derivatives;
view the Report on the Australian OTC Derivatives Market report
Three Subdivision Industry Indices Launched Today
October 29, 2012--In order to provide investment reference for subdivision industries like health care, non-ferrous, and food and beverage, Shenzhen Securities Information Co., Ltd. announced that the SINO Health Care Index (Code: 399394, Abbreviation: SINO Health Care), SINO Non-ferrous Index (Code: 399395, Abbreviation: SINO Non-ferrous) and SINO Food & Beverage Index (Code: 399396, Abbreviation: SINO Food) were launched on October 29 2012.
All the indices take December 31 2004 as the base date and 1000 points as the base value.
Based on the CNINFO Industry Classification for Listed Companies, the aforesaid indices take market capitalization, liquidity and industry representativeness into full consideration, and select sample stocks from A-share companies in corresponding subdivision industries. In this regard, SINO Health Care selected 80 samples from the medicine and health care industry
Morgan Stanley-ETF Fund Flows-ETFs Exhibited Net Inflows of $55.8 Billion in 3Q12
October 29, 2012--There were 20 new ETFs listed in the US in the third quarter of 2012. So far this year, 141 ETFs have been issued and three providers have entered the ETF market.
There have also been 73
ETF liquidations so far this year. As of October 25, 2012, there were
36 issuers with 1,234 ETFs listed in the US.
Net inflows into US-listed ETFs were $55.8 billion during 3Q12.
This is well above the average quarterly rate of net cash inflows over the past three years ($33.8 billion), bringing net cash flows for the first three quarters of the year to $133.4 billion. ETF net inflows are on pace for the biggest year on record.
The current high mark is 2008, when US-listed ETF net cash inflows were $174.6 billion.
The largest net cash inflows this past quarter went into US Large-Cap ETFs. ETFs tracking US large cap equity indices had the highest net cash inflows this past quarter at $11.0 billion andthey currently account for over 21% of the US-listed ETF market. Fixed Income and Emerging Market ETFs had the next highest net cash inflows this past quarter at $8.1 billion and $6.8 billion, bringing their net cash flows for the first three quarters of the year to $41.3 billion and $14.4 billion, respectively. Currency ETFs were the only segment to post net cash outflows this past quarter and for the first three quarters of the year at $0.1 and $2.0 billion, respectively.
US ETF industry assets of almost $1.3 trillion are ~21% higher than their level at the end of 2011. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 79% and 47% of industry assets, respectively.
SSE Report: Blue Chips Perfect for Long-term Investment
October 29, 2012--According to the latest research report made by the Shanghai Stock Exchange (SSE), an array of major reforms launched by the China Securities Regulatory Commission (CSRC) since 2012 have got active responses from the market and witnessed the increasing policy effects, with the appeal of the market being enhanced as well.
At present, domestic blue-chip companies have long-term investment values in light of historical data of the market valuation, listed companies' performances and dividend distributions at home and abroad, as well as investors' incomes from long-term shareholding.
The low market valuation
The SSE report presented an argumentation for the viewpoint above in the following 3 aspects. First, the historical data of the market valuation at home and abroad showed that China's securities market would have long-term investment values. When the SSE Composite Index closed at 2,066 points on October 26, 2012, the price-to-earnings ratio reached 11.16, lower than those of the previous two bottoms, namely, the price-to-earnings ratio of 16.52 when the SSE Composite Index closed at 998 on June 6, 2005 and that of 12.25 when the SSE Composite Index closed at 1,664 on October 28, 2008.
ICICI Securities to advise govt for public sector ETFs
October 26, 2012--The Department of Disinvestment has selected ICICI Securities to act as its adviser to create and market the proposed central public sector enterprise (CPSE) exchange traded funds ( ETFs).
Three other i-bankers--Citi, SBI Caps and Yuanta Fund--were in the fray for this.
The proposed PSU ETF will comprise shares of listed central PSUs and will act as an additional mechanism for the disinvestment process.
Chinese Economy Lost $3.79 Trillion in Illicit Financial Outflows Since 2000, Reveals New GFI Report
Fraudulent Mispricing of Trade Accounted for $3.20 Trillion in Illicit Outflows from 2000-2011
Serious Ramifications for "Social and Political Stability"
October 25, 2012--The Chinese economy hemorrhaged US$3.79 trillion in illicit financial outflows from 2000 through 2011, according to a new report [PDF] released today by Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization.
Amidst increased domestic concern over inequality and corruption, GFI’s study raises serious questions about the stability of the Chinese economy merely two weeks before the once-in-a-decade leadership transition.
“I’ve studied the proceeds of crime, corruption, and tax evasion for decades, and the magnitude of illicit money flowing out of China is astonishing,” said GFI Director Raymond Baker. “There’s no other developing or emerging economy that even comes close to suffering as much in illicit financial outflows.”
view the Illicit Financial Flows from China and the
Role of Trade Misinvoicing report
Regarding Today's Some News Report On Purported Personnel Matters Related To Merger Of Osaka Securities Exchange And Tokyo Stock Exchange
October 24, 2012--Today, there were some news reports by some media institutions on personnel matters in connection with the business combination between Osaka Securities Exchange Co., Ltd. and Tokyo Stock Exchange Group, Inc.
However, there is no factual basis regarding such decision at the present time.
China Macro-Rmb: At worst no appreciationRmb: At worst no appreciation
October 23, 2012--As of 19 October, the Rmb was slightly weaker than the US dollar compared with its value at the beginning of the year. In our view, the recent appreciation trend will continue until the currency exits 'depreciation' territory for the year.
China’s huge international reserves of US$3.2tn mean that the government does not have to depreciate the Rmb if it does not want to. In addition, we believe the Chinese government will not tolerate a weak image of the Rmb while it is in the process of Rmb internationalization and capital account liberalization. Currently, exchange rate risks in China are mostly tilted towards increasing volatility, and not towards depreciation risks.
At worst the Rmb will show no appreciation for the year
Despite the recent sharp appreciation, the Rmb is still slightly weaker YTD against the US dollar. We believe the current appreciation trend is more than explained by the upcoming US presidential election, as the appreciation has been against other major currencies too. The trend will likely continue until the Rmb exits ‘depreciation’ territory for the year.
Medium-term fundamentals still argue for Rmb appreciation in real terms
Although China’s trade balance has fallen from a huge surplus of 8-9% of GDP before the global financial crisis, it will remain in surplus for the medium term. FDI inflows have slowed due to cyclical and structural factors, but we expect them to continue. These inflows, combined with China’s current US$3.29tn of international reserves, will buffer any capital outflows in our baseline scenario. In other words, the Rmb does not have to depreciate if the government does not want it to.
