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China to expand foreign investment quota to $80 bln
April 3, 2012--China said on Tuesday it will raise the total quota for its qualified foreign institutional investor scheme (QFII), a main channel for foreign investment in Chinese securities, by $50 billion to $80 billion, as the current programme nears its limit.
China will also raise the Renminbi Qualified Foreign Institutional Investor scheme (RQFII), which allows investors to buy mainland securities using offshore yuan, by 50 billion yuan, the China Securities Regulatory Commission (CSRC) said in a statement posted on its website.
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Source: Reuters
DB-Equity Research-Asia-Pac ETF Market Weekly Review: With AUM around $100bn, ETPs had outflows of $0.7bn in March
April 3, 2012--Market Review
The Asian Pacific region had mixed markets last week. In all, Japan (Nikkei 225) gained 0.72%, Korea (KOSPI2) dropped by 0.51%, China (CSI 300) declined by 3.84%, Hong Kong (HSI) fell by 0.55%, Singapore (FSSTI) increased by 0.68%, and Australia (S&P/ASX 200) advanced by 1.52% over the previous week.
New ETP launches
Last week, two new products were launched in the Asia-Pacific ETP market. Nikko Asset Management listed one Fixed Income ETF on Tokyo Stock Exchange tracking Barclays Capital Advanced Emerging Markets Risk Controlled 10% USD ER Index in JPY equivalent. Motilal Oswal Mutual Fund listed one gold ETF on National Stock Exchange (India). (See Figure 5 for further details.)
ETP Monthly Flows
Asia-Pacific ETP market recorded monthly cash outflows of $664m for the month of March bringing YTD cash flows to -$385m. Prior to that, Asia-Pacific region recorded monthly flows of $1.4bn and -$1.1bn for January and February respectively. From a market perspective, ETPs in South Korea led the outflows with $611m, followed by Taiwan with $239m and Japan with $152m, while Hong Kong and Australia witnessed inflows of $157m and $109m respectively. Total monthly outflows were primarily contributed by Equity ETFs with $1bn of outflows, partially offset by $271m of inflows in Fixed Income ETFs. Within Equity products, Emerging Country and Asia Pac Developed Country ETFs recorded outflows of $637m and $380m respectively, while sector ETFs had inflows of $151m.
Turnover Review
Asia-Pacific ETP turnover totaled $4.8bn for last week, 6.7% down from the previous week’s total. South Korea continues to be on top of the turnover ranking with $1.6bn, followed by China ($1.2bn), Hong Kong ($0.9bn), Japan ($0.7bn), and Taiwan ($0.1bn). Among Equity ETFs, Emerging Country, Asia Pac Developed Country, Leveraged Strategy, and Short Strategy ETFs had total turnover of $2.3bn, $1bn, $0.8bn and $0.3bn respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $101m.
Assets Under Management Review
Last week, Asia-Pacific ETP AUM ended at $99.5bn. On a year to date basis, Asia-Pacific ETP market is up by $8bn or 8.8% above last year’s closing.
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Source: Source: Deutsche Bank - Equity Research - Asia Pacific
Strengthening Australia's Equity Capital Markets
April 3, 2012--On 2 April ASX released Strengthening Australia's equity capital markets: ASX proposals and consultation setting out proposals to facilitate capital raising for mid to small cap companies and updating ASX's admission requirements.
The package is the first phase of listing initiatives ASX is rolling out in 2012 to strengthen Australia’s equity capital markets.
The key elements of the paper are:
Increasing the capital raising limit for mid to small caps from 15% to 25%. 'Mid to small caps' means listed entities with a market capitalisation of $300 million or less. There are more than 1,600 of these companies listed on ASX, and more than half are from the resources sector and based in Western Australia.
Updated admission requirements:
Increasing the net tangible assets test from $2 million to a minimum of $4 million; and
Changing the spread test so that there are three different levels at which acceptable shareholder spread can be achieved.
view the Strengthening Australia's Equity Capital Markets: ASX Proposals and Consultation
Source: ASX
Global businesses warn India over tax plan
April 2, 2012--International trade groups representing more than 250 000 companies have warned Indian Prime Minister Manmohan Singh that new taxation proposals by his government have led foreign businesses to reconsider their investments.
India’s federal budget last month outlined proposals that would allow authorities to make retroactive tax claims on overseas deals and bring in new anti-tax-avoidance measures, moves that have been criticised for further denting investor sentiment towards India.
SGX securities market starts dual currency trading
For the first quarter of 2012, in terms of value traded (USD & SGD), HPHT accounted for 1.8% of the market’s Securities Daily Average Value (SDAV). Today, it accounted for more than 3% of market turnover, suggesting that liquidity may have improved. In terms of Daily Average Volume (DAV), the S$ counter of HPHT is 17% of its total turnover.
Dual currency trading benefits retail investors by making HPHT more accessible in Singapore dollar, and cheaper without incurring the cost of foreign exchange conversions. The flexibility of dual currency trading is also expected to appeal to investors seeking Singapore dollar priced assets with exposure to regional growth.
read more SSgA targets Asia growth via Australia bonds read more BSE launches trading in BRICSMART indices derivatives Last October, leading Exchanges of the BRICS emerging market bloc had announced a joint initiative to expose investors to products in these dynamic economies. Being the Indian exchange member of this alliance, BSE will provide India investors access to the important BRICS’ economies through cross-listing products and other avenues to promote development between these markets. While addressing the gathering, MD & CEO, BSE, Mr. Madhu Kannan, said, “Today marks an important event for BSE. The products we are introducing today are part of our efforts to not only link growing Indian markets to opportunities in other emerging markets but equally importantly giving Indian investors access to growth opportunities across the world. We thank the partner Exchanges, Regulators, and the Ministries of Finance and External Affairs for all the support.” read more BSEIndia-Index based market wide circuit breaker for the Quarter 1st April, 2012 to 30th June, 2012 The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier. In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute
read more 12-57MR ASIC releases exchange traded funds report view the REPORT 282
Regulation of exchange traded funds
New ETFs Included in Real-Time Dissemination of "TSE Indicative NAV" read more If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: FIN24
April 2, 2012--Singapore Exchange's (SGX) securities market today successfully began dual currency trading.
Hutchison Port Holdings Trust (HPHT), the world's first publicly traded container port business trust, is the first listed security to launch dual currency units on SGX by adding a S$ counter to their US$ counter.
It saw healthy trading of its S$ counter, totalling S$4.13 million in its first day of trading. Its US$ counter traded US$16.01 million.
Source: Singapore Exchange (SGX)
April 2, 2012--State Street Global Advisors is moving to grow its range of exchange traded funds for the Asia Pacific region with a focus on Australia's bond market and Asian fixed income opportunities.
Scott Ebner, London-based head of global ETF product development at SSgA, says Asia Pacific represents a relatively small portion of the overall ETF investment landscape, which is dominated by markets in the US and Europe.
Source: FT.com
Trading commences in Hang Seng Index Futures, FTSE/JSE Top40 Futures, iBOVESPA futures and MICEX Index Futures
Commenced First Phase of BRICS Exchanges Alliance
March 30, 2012--BSE (formerly known as the Bombay Stock Exchange) today, in a bell ringing ceremony, launched the first phase of BRICS (Brazil, Russia, India, China and South Africa) Exchanges Alliance by commencing trading in Hang Seng Index Futures, FTSE/JSE Top40 Futures, iBOVESPA futures and MICEX Index Futures.
The Consul Generals of the four nations along with Mr. Rajeev Agarwal (Whole-time member – SEBI), rang the Opening bell to mark the launch of trading in these benchmark indices.
Source: BSEIndia
March 30, 2012--Trading Members of the Exchange are hereby informed that the Exchange implements on a quarterly basis (SEBI circular SMDRPD/Policy/Cir-37/2001 dated June 28, 2001) the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way at 10%, 15% and 20%.
This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.
Source: BSEIndia
March 29, 2012--ASIC released a report on exchange traded funds (ETFs) today which outlines how this growing industry is regulated in Australia and the impact of proposed international principles to address concerns by overseas regulators. Report 282 Regulation of Exchange Traded Funds ( REP 282), explains ASIC’s current understanding about the operation of ETFs and ongoing work in this area.
ETFs can provide a convenient and low-cost way for investors to diversify and receive returns close to the performance of market indexes or other assets, often with lower fees than traditional managed funds. But while standard, ‘physical’ ETFs generally invest in the underlying investments they are designed to track, ‘synthetic’ ETFs also use derivatives, such as swap agreements, to achieve similar outcomes. Benefits to investors of synthetic ETFs may include access to new and varied asset classes and low performance ‘tracking error’. Downsides include increased complexity and counterparty risk.
Source: ASIC
March 28, 2012--Tokyo Stock Exchange, Inc. (TSE) will newly calculate and publish the real-time Indicative Net Asset Value (Indicative NAV) per share for the below Exchange Traded Funds (ETFs) beginning April 16, 2012.
Code: 1567
ETF: MAXIS TOPIX Risk Control (5%) ETF
MAXIS TOPIX Risk Control (5%)
Fund Administrator: ETF Mitsubishi UFJ Asset Management
Source: TSE
