China inflation falls to 6.2% from 3-year high
September 9, 2011--Producer prices climbed 7.3% last month from a year earlier, the statistics bureau said today. That compared with a 7.5% jump in July and the 7.2% median estimate
China’s key inflation rate moderated slightly in August from a three-year high, giving some elbow room to the policy makers in fighting the global slowdown led by the US and the eurozone.
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Source: IIFL
Hong Kong faces dollar peg inflation dilemma
September 8, 2011--While Switzerland this week in effect pegged the franc to the euro, a debate is intensifying in Hong Kong over whether to sever the city’s 27-year-old peg to the US dollar.
The mechanism that links the Hong Kong and US dollars at a rate of HK$7.80 to US$1 has served the city well since its introduction in 1983. It has survived the hand-over of sovereignty from Britain to China, the Asian financial crisis and repeated attacks from speculators.
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Source: FT.com
BSE aims to generate investor interest in derivatives
September 8, 2011--The Bombay Stock Exchange (BSE) has launched a market making scheme to generate more investor interest in derivatives, based on its benchmark Sensex and the underlying 30 stocks. The exchange has earmarked a total of Rs 107 crore for the scheme that will be in force for six months.
According to a release issued by the exchange, the Liquidity Enhancement Incentive Programmes (LEIPS) will reward derivative members for building a ‘healthy’ order book with the goal of creating ‘lasting, self-sustaining liquidity in BSE’s derivatives segment.’
Market making liquidity enhancement scheme, in regulatory parlance, is essentially a way in which an exchange can reward entities that generate a certain amount of volume in a segment. The Securities and Exchange Board of India (Sebi), in June, allowed bourses to introduce such schemes for equity derivatives and any new instruments to be launched.
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Source: Business Standard India
Indian exchanges seek equity derivatives liquidity boost
September 7, 2011--India’s two major exchanges have released details of liquidity enhancement programme for equity derivatives following a recent circular from national regulator the Securities and Exchange Board of India allowing such schemes.
The National Stock Exchange (NSE), which currently accounts for around 80% of Indian equity market share according to Thomson Reuters, will introduce a liquidity enhancement scheme for S&P 500 and Dow Jones Industrial Average (DJIA) contracts on 15 September. Meanwhile, the Bombay Stock Exchange (BSE) will go live with its own two-stage liquidity enhancement incentive programme for derivatives based on the SENSEX index and its underlyings on 28 September.
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Source: The Trade News
DB - Equity Research - Asia Pacific ETF Weekly Review- Record ETP inflows of $4bn in August
September 7, 2011--Market Review
Despite the headwinds coming from the western world markets, most of the eastern world markets had a positive week, except for China. Japan (Nikkei 225) gained 1.74%, Korea (KOSPI2) soared by 4.87%, China (CSI 300) slid by 3.36%, Hong Kong (HSI) climbed by 3.22%, Singapore (FSSTI) rose by 3.45% and Australia (S&P/ASX 200) increased by 1.02% over the previous week.
New ETP launc
hes
Last week, only one new product was launched in the Asia-Pacific region. China Merchants Fund Management Company listed one Equity ETF on Shenzhen Stock Exchange tracking the SZSE TMT50 TRN Index.
ETP Monthly Flows: Strong flows continue in spite of weak equity markets
Asia-Pacific ETP market witnessed strong cash inflows of $4bn in the month of August which is the highest monthly flows since the start of 2011. With this latter figure, it has been fourth month in a row with cash inflows of over $2bn for the Asia-Pac ETP market. From a market perspective, ETPs in Japan led the inflows with $3.6bn, followed by Korea with $729m and China with $259m, while Taiwan experienced outflows of $804m. Year to date, Asia-Pac ETPs have gathered $13.7bn or 16.3% compared to last year’s closing AUM level.
Total monthly flows were primarily contributed by Equity ETFs with $3.8bn of inflows. Within Equity products, Asia Pac Developed Country ETFs and Strategy ETFs (Leveraged and Short) recorded $3.9bn and $519m of inflows, partially offset by outflows of $591m from Emerging Country ETFs. Amid declining markets Gold ETPs gained traction and collected total net inflows of $167m during the month of August.
Turnover Review: turnover retreats on lower volatility
Asia-Pacific ETP turnover totaled $6.8bn for the last week, 14.4% down from previous week’s total and 42.2% up from last year’s weekly average. South Korea continues to be on top of the turnover ranking with $3.4bn (down 5.6%), followed by Hong Kong ($1.2bn, up 2.5%), China ($1bn, up 0.7%), Japan ($578m, down 49%), and Taiwan ($231m, down 13%). Among Equity ETFs, Emerging Country, Short Strategy, Leveraged Strategy and Asia Pac Developed Country ETFs had total turnover of $2.6bn, $1.4bn, $1.3bn and $967m respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $197m, 70.6% down from last week.
Asset Under Management Review
Asia-Pacific ETP AUM ended at $92.3bn with an increase of 1.4% over the previous week. On a year to date basis, Asia-Pacific ETP market is $8.2bn or 9.7% above last year’s closing.
to request report
Source: Deutsche Bank - Equity Research - Asia Pacific
FTSE China Index Series Quarterly Review
September 7, 2011--The FTSE Asia Pacific Regional Committee announces the following quarterly review changes to the FTSE China 25 Index, FTSE China B35 Index , FTSE China A50 Index, FTSE China A200 and A400 Indices and
FTSE China A Small Cap Index which will become effective after the close of business on Friday, 16 September 2011 (i.e. on Monday, 19 September 2011).
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Source: FTSE
Seoul plans tax on foreign currency bonds
September 7, 2011--South Korea plans to impose taxes on the earnings of overseas investors from foreign currency bonds sold in the country in its latest effort to curb rising short-term external debt and counter capital inflows.
The finance ministry said on Wednesday that foreign investors will be required to pay a 14 per cent tax on interest income from so-called Kimchi bonds, starting in 2012, once the proposal wins parliamentary approval.
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Source: FT.com
Barclays Lists Seven Commodity-Related Exchange Traded Notes On The Tokyo Stock Exchange - Barclays iPath® ETN Series
September 6, 2011--Barclays Bank PLC announced today the launch of seven commodity-related iPath® Exchange Traded Notes (ETNs) on the Tokyo Stock Exchange (TSE). As in the case of the two ETNs (volatility and commodity-related) listed on 23 August, these seven ETNs will be in the format of Japanese Depositary Receipts (JDRs).
Details of the seven new ETNs are as stated in the below table. Together with the two ETNs listed on 23 August, Barclays now has a total of nine ETN products listed on the TSE.
| Ticker | Issue Name | Underlying Index | Trading Unit |
| 2021 | iPath® S&P GSCI® Total Return Index JDR | S&P GSCI® Total Return Index | 1 |
| 2029 | iPath® S&P 500 VIX Mid-Term Futures JDR | S&P 500 VIX Mid-Term Futures Index Total Return | 1 |
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Source: Tokyo Stock Exchange (TSE)
Special Change in KOSPI 200 Sector indices
September 6, 2011--As Shinsegae(A004170) spun off emart(A139480), KRX will delete Shinsegae(A004170) in KOSPI 200
Consumer Staples and add it to KOSPI 200 Consumer Discretionary on Sep. 9, 2011. (KRX)
Source: KRX
KRX To List KINDEX Inverse ETF On September 8, 2011
September 6, 2011--The Korea Exchange ("KRX") is going to list KINDEX Inverse ETF on September 8, 2011.
KINDEX Inverse ETF uses the nearest month contract of KOSPI200 Futures (F-KOSPI200) as the underlying asset, but is designed to profit if the value of F-KOSPI200 declines.
With the listing of KINDEX Inverse ETF, the total number of ETFs listed this year would be 38, bringing the total number of the ETFs listed on the KRX to 102.
Source: KRX
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