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Shenzhen Stock Exchange TMT50 Index Released On November 8
November 8, 2010--Shenzhen Securities Information Co., Ltd. recently announced that Shenzhen Stock Exchange entrusted it to compile and release the SZSE TMT50 index as of Nov. 8, 2010. The index tracks the overall performance of listed companies in terms of technology, media and telecom.
The SZSE TMT50 currently released includes the return index with the abbreviation“TMT50R” and the code“399609”, and the price index with the abbreviation“TMT50P” and the code“399610”. The base date is Dec. 31, 2004 with the basis point of 1000. The price index is not subject to the ex-right adjustment for dividend. The index is the first one to select samples only in TMT industries, choosing stocks in top 50 list as initial samples.
The TMT50 index will provide the gauge to measure the performance of stock prices of related companies, and lay down the foundation for building up the index products which share the TMT industry growth.
It is reported that the index was developed by Shenzhen Securities Information Co., Ltd. on the demand of China Merchants Fund Management Co., Ltd. which is now actively striving to develop products tracking TMT50 index.
Thai bourse reveals 2011 strategies to strengthen competitiveness
November 8, 2010--The Stock Exchange of Thailand (SET) announced its four strategies to expand business, enhance service quality and effectiveness, and increase competitiveness to be ready for a highly competitive environment after demutualization.
SET will be the preferred destination for Thai listed companies
to use for fundraising and to fill all investors' needs. The strategies will
help increase market capitalization by THB100 billion (approx. USD33.33 billion) from new listings. In addition, SET will launch new products to fill local and foreign investors' needs.
"SET's Board of Governors approved the 2011 strategies to strengthen SET's international competitiveness. Next year is important for the SET, as it has to be prepared for a highly competitive environment after demutualization, where there will be new players in the market, including in securities trading, clearing, and depository and registration services. Therefore, SET will have to further enhance its competitiveness, expand business opportunities, and connect with foreign exchanges and investor networks," disclosed SET President Charamporn Jotikasthira.
The four strategies are to: 1) Expand coverage, 2) Enhance value, 3) Increase efficiency, 4) Improve capability.
Shanghai Stock Exchange (SSE): Five Measures to Control Insider Dealing
November 5, 2010--Insider dealing has become one of the obstacles to the sound development of the capital market in an all-floating market environment. In recent years, the Shanghai Stock Exchange (SSE) has implemented the self-regulatory management, brought into full play the advantage of front-line supervision and strictly supervised the insider dealing.
The bourse has made achievements in the comprehensive prevention and control of insider dealing thanks to a series of supervision measures aiming to enhance the awareness of the insiders of inside information of abiding by the laws and regulations and promote the standardized operation of the listed companies and relevant parties apart from the continuous improvement of restriction mechanism.
Firstly, the SSE has emphasized the confidentiality requirements before the listed companies' disclosure of significant information.
A listed company's inside information refers to the undisclosed information involving the listed company's operation and finance or having great influence on the company's stock prices. The inside information, created when a listed company is planning a specific issue, is compiled, transmitted, examined and approved and finally disclosed. Relevant persons in the know in every link can be called the insiders of inside information. Once such persons use the inside information for stock purchase and sale, leak the information or advise others to buy or sell shares, an insider dealing is formed. Therefore, the SSE has focused on three sources to prevent the insider dealing in the daily information disclosure supervision. To begin with, the bourse required the listed companies to strictly formulate and implement the information disclosure administrative systems and the circulation systems of internal information transmission. Relevant information disclosure parties such as the directors, supervisors, senior executives and controlling shareholder, actual controller, purchaser, sponsor, securities service institutions and media should be confirmed.
China ushers in credit default swaps
November 5, 2010--Beijing launches its first credit default swaps amid opposition from senior regulatory officials who have urged caution because of the role such products played in the financial crisis.
On Friday – the first day of the new pilot project – nine financial institutions, including Deutsche Bank, Industrial and Commercial Bank of China, China Construction Bank conducted 20 trades involving a total of Rmb1.84bn ($276.3m) of derivatives.read more
DB Global Equity Index & ETF Research: Asia Pacific ETP Market Weekly Review
November 3, 2010--Market Overview
There are 243 equity based ETFs in the Asia Pacific region with 336 listings across 12 countries and 15 exchanges. Japan has the largest market share by AUM accounting for 39.7% of the whole market, whilst China has the largest market share by turnover with 38.78%.
There were three new listing on the previous week. Nikko Asset Management launched three new equity ETP products in the Tokyo Stock Exchange. The new products track the S&P 500 Index, the Hang Seng China Enterprise Index and the S&P CNX Nifty Index.
Turnover
Monthly average daily turnover remained at about the same level than the last week. Turnover for the previous week was USD 1,474m. The largest ETF by turnover was the iShares Asia Trust - iShares FTSE/Xinhua A50 China Tracker issued by BlackRock with USD 303m accounting for 20.5% of total turnover.
Assets Under Management
AUM remained at about the same level in the previous week. AUM as of Oct 29th was USD 75.9bn. The largest ETF by AUM is the TOPIX ETF managed by Nomura Asset Management with AUM of USD 9.6bn.
To request a copy of the report
FTSE BRIC 50 licensed for first China Southern passive QDII fund
November 3, 2010--FTSE Group (“FTSE”), the award-winning global index provider, has licensed the FTSE BRIC 50 Index to China Southern Fund Management (China Southern) for their first passive Qualified Domestic Institutional Investor (QDII) fund.
The new fund which launches in China further highlights how the collaboration between FTSE and domestic fund managers is bringing global investment opportunities to Chinese investors.
Jessie Pak, FTSE Director of Asia said, “Investors’ interest in significant emerging markets is gaining momentum. As the basis of the China Southern fund, the FTSE BRIC 50 gives Chinese investors access to the potential investment opportunities in these markets. FTSE is also pleased to be part of the QDII scheme development and, as a pioneer in the China market, looks forward to building on this success.”
Ding Chen, Assistant CEO, Managing Director, China Southern commented, “There is growing interest among our clients to explore investment opportunities in the large growth markets of Brazil, Russia, India and China. Choosing the FTSE BRIC 50 Index as the basis of our first passive QDII fund enables us to tap FTSE’s expertise to base our fund on a representative and easily replicable index that meet the needs of investors. We look forward to continuing our relationship with FTSE as our product offerings expands.
With China’s Economic Prospects Sound, the Focus Shifts to Structural Issues, According to the World Bank
November 3, 2010-- China’s growth has moderated somewhat to a still healthy pace, with a shifting composition, according to the World Bank’s latest China Quarterly Update released today.
The Update, a regular assessment of China’s economy, finds that GDP growth declined from 10.6 percent in the first half to a still surprisingly strong 9.6 percent (year on year) in the third quarter. The domestic economy cooled as the stimulus impact is fading out and the monetary stance is being normalized. Growth of investment and urban consumption has decelerated, and so has that of imports. Meanwhile, with exports strong, net external trade has contributed significantly to (yoy) growth and the external surplus is rising again.
The Update notes that, despite an expected deceleration, global growth prospects are fairly favorable due to emerging market strength. However, risks remain, including a weaker outlook in high income countries. Global price pressures remain contained by spare capacity in many countries, but raw material prices have risen again and there are upward inflation risks internationally.
China’s own economic prospects remain sound, with risks both ways, according to the Update. “Growth may ease a bit further as global growth decelerates and the macro stance is normalized but it remains supported by the traditional growth drivers and a robust labor market.” says Louis Kuijs, Senior Economist and main author of the Update. “We have edged up our GDP growth projection for 2010 to 10 percent after the third quarter data. We see growth at 8.7 percent in 2011 and easing somewhat further in the medium term.”
view China Quarterly Update, November 2010
Bank of Japan Board Said ETF Purchases Could Boost Sentiment, Minutes Show
November 2, 2010--Bank of Japan board members said purchases of exchange-traded funds and real-estate investment trusts could increase transactions by supporting investor sentiment, minutes of the bank’s Oct. 4-5 board meeting show.
Some members said that while the amount of purchases might be small, the bank’s purchase would produce positive effects as a catalyst in promoting more active transactions in their markets and more risk-taking activity in the overall economy,” according to minutes published today in Tokyo.
Oct daily trading turnover on SGX hits 17-month high
November 2, 2010-The Singapore Exchange (SGX) said the average daily trading turnover for securities listed on the bourse reached its highest level in 17 months in October.
Shares of SGX, which is facing political opposition in Australia to its proposed S$10.7 billion takeover of the Australian Stock Exchange (ASX), rose 0.56 per cent to S$8.9.
SGX shares have fallen more than 9 per cent since news of the takeover first surfaced.
SGX released its October market statistics after trading ended on Tuesday.
At $2.1 billion, the average value of securities changing hands on the exchange in a day was the highest since May 2009 and compared with $1.8 billion in September.
Economy: Indonesia should shift spending from subsidies to pro-growth programmes
November 2, 2010-- Indonesia should shift government spending away from inefficient subsidies toward programmes that will help the country meet its ambitious medium-term growth and poverty reduction targets, according to a new OECD report.
The OECD's Economic Survey of Indonesia 2010 says the Indonesian economy has shown strong resilience during the global economic crisis. Real GDP grew by 4.6% in 2009 - the third highest level in the G20, after China and India - and is on track for a 6% growth rate this year and next.
“Indonesia’s recent growth performance has been impressive, but there is no room for complacency,” OECD Secretary-General Angel Gurría said during a launch with Finance Minister Agus Martowardojo in Jakarta. “The current environment offers Indonesia a unique opportunity to embark on a long period of sustained increase in living standards.
But to seize this opportunity, the government has to pursue its reform agenda. For instance, better tax collection and more effective government spending would free up funding for infrastructure, education and health care initiatives.”
