China is outgrowing its financial system
July 19, 2012--At the beginning of July, a mix of the most thoughtful Chinese and foreign policy makers, academics and market practitioners gathered in Shanghai for the annual Lujiazui financial forum.
The economic backdrop wasn’t great. Europe continues at the edge of the precipice while the US has lost momentum and emerging markets are also slowing. The world still hasn’t recovered from the global financial crisis made in the US and swiftly exported to much of the world.
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Source: FT.com
Risk warning over China's first A-share ETF
July 18, 2012--Foreigners can access Chinese A-shares via a new ETF, but the fund comes with a warning from the local regulator about associated risks.
The ETF, which started trading on Tuesday was launched by privately owned fund giant, China Asset Management, which is based in Beijing with offices in China including Shanghai and Shenzhen. It also has a subsidiary in Hong Kong.
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Source: Financial News
DB-Equity Research-Asia-Pac-ETF Market Weekly Review: Asia-Pac ETF+ Monthly Directory : June 2012 ETPs
July 17, 2012--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). If you have any questions about any of the products listed, or any suggestions on how to improve the directory going forward, please do not hesitate to get in touch.
The following link will be available for 90 days. For more information, please click on the link for the full PDF. If you have any trouble viewing the link, copy and paste the link in a browser.
http://pull.db-gmresearch.com/p/343-9024/84496367/Asia-Pac_ETF+_Monthly_Directory.pdf
Source: Source: Deutsche Bank - Equity Research - Asia Pacific
First RQFII A-share ETF to Debut at HKEx
July 17, 2012--Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the pending listing of the first RMB Qualified Foreign Institutional Investor (RQFII) A-share exchange traded fund (ETF) on The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of HKEx, the ChinaAMC CSI 300 Index ETF, which China Asset Management (Hong Kong) Limited (CAMHK) will list on the Exchange tomorrow (Tuesday).
CAMHK's RQFII A-share ETF is a RMB-denominated physical A-share ETF. Through the RQFII investment quota granted by Mainland authorities, an RQFII A-share ETF seeks to track the performance of an A-share index by investing RMB raised outside Mainland China directly in a portfolio of A shares.
The ChinaAMC CSI 300 Index ETF will be the first physical ETF outside the Mainland market to invest directly in A-shares and the first A-share ETF outside the Mainland to trade in RMB. Besides this ETF, there are 24 other ETFs on A-share indices listed on the Exchange, but they adopt synthetic replication and are traded in Hong Kong dollars.
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Source: HKEx
SFC-Fund management business continues to develop despite challenges in 2011
July 16, 2012--The annual Fund Management Activities Survey (FMAS) released today by the Securities and Futures Commission (SFC) shows that despite a 10.4% year-on-year decline, the combined fund management business (Note 1) continued on an uptrend on a trailing three-year average basis while achieving a number of milestones in expanding the range of renminbi investment products.
The latest survey indicates that Hong Kong remained a preferred platform for international investors investing in the region. Overseas investors have consistently contributed over 60% (i.e. $5,643 billion; Note 2) of the total fund management business, excluding real estate investment trusts (REITs). This proportion has remained steady over the past five years.
view the Fund Management Activities Survey (FMAS)
Source: SFC
Asian institutions channeling mandate assets to ETFs
July 16, 2012--Asian sovereign wealth and pension funds are increasingly bringing assets back in-house from external managers and turning to exchange traded funds for better transparency, according to risk-modelling firm Axioma.
“Institutional investors want the value from their investment managers to come from their investment process. They want a disciplined investment process that is transparent and perceived to be repeatable,” says Olivier d’Assier, Singapore-based managing director for Asia Pacific at Axioma.
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Source: FT.com
DB-Equity Research-Asia-Pac-ETF Market Weekly Review: ETP AUM lost $2.9bn amid bearish equity markets
July 16, 2012--Market Review
Last week, all the markets in the Asia-Pacific region were in negative territory except Singapore. From north to south, Japan (Nikkei 225) lost 3.29%, Korea (KOSPI2) was down by 2.57%, China (CSI 300) decreased by 0.89%, Hong Kong (HSI) slipped by 3.58%, Singapore (FSSTI) rose by 0.57%, and Australia (S&P/ASX 200) fell by 1.82% over the previous week.
New Launch Review
Last week, Great Wall Securities made its debut with an equity ETF listing on Shanghai Stock Exchange tracking the SSE180 Index. (See Figure 4 for further details)
Turnover Review
Asia-Pacific ETP turnover totaled $5.9bn for last week, 30.7% up from the previous week’s total. South Korea continued to be on top of the turnover ranking with $2.7bn, followed by China ($1.5bn), Hong Kong ($0.9bn), Japan ($0.5bn), and Australia ($0.1bn). Among Equity ETFs, Emerging Country, Leveraged Strategy, Short Strategy, and Asia Pac Developed Country ETFs had total turnover of $2.7bn, $1.3bn, $0.8bn, and $0.7bn respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $69m for the last week.
Assets Under Management Review
Last week, Asia-Pacific ETP AUM decreased by $2.9bn and ended at $111.3bn. On a year-to-date basis, Asia-Pacific ETP market is up by $19.8bn or 21.7% above last year’s closing.
to request report
Source: Deutsche Bank - Equity Research - Asia Pacific
First Physical China A-Share ETF to Start Trading in Hong Kong
July 16, 2012--The first foreign exchange-traded fund backed by stocks listed only in mainland China is scheduled to begin trading today in Hong Kong.
China Asset Management Ltd. received approval from the Hong Kong Securities and Futures Commission to list the ETF, it announced in a statement July 9. The security tracks the China AMC CSI 300 Index via so-called A-shares purchased with yuan raised outside China. The shares are acquired through the Renminbi Qualified Foreign Institutional Investor quota granted by mainland authorities.
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Source: Bloomberg BusinessWeek
ETFs unlikely to soar in Asia
July 15, 2012--The exchange traded fund market in Asia will not follow the same evolutionary path as the US and European markets, according to Mark McCombe, chairman of BlackRock's Asia Pacific business.
The developed ETF markets “provide pretty much everything people need”, he said in an interview with FTfm.
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Source: FT.com
Singapore's economy shrinks 1.1 percent in 2Q
July 13, 2012--July 13, 2012--Singapore's economy shrank in the second quarter as a global slowdown undermined demand for the city-state's exports, the Trade and Industry Ministry said Friday.
Gross domestic product contracted at a seasonally adjusted, annualized rate of 1.1 percent in the April to June period from the previous quarter, when it expanded 9.4 percent, the ministry said.
Manufacturing, led by electronics and pharmaceuticals, dropped 6 percent in the second quarter, reversing from 21 percent growth in the first quarter, while services grew just 0.4 percent and construction 0.3 percent, it said. "The manufacturing sector, the key driver in the first quarter, is now the main drag," said Irvin Seah, an economist with DBS Bank in Singapore. "Weak external demand on account of the economic turmoil in the eurozone and the fading growth momentum in the U.S. continues to weigh on the growth pace in this sector."
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Source: Today's Zaman
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