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SGX set to launch $6bn offer for ASX
October 22, 2010--SGX, the Singapore exchange, is preparing to launch a takeover offer of more than A$6bn ($5.8bn) for its Australian counterpart, ASX, as early as Monday in a deal that would combine two of Asia’s biggest exchange operators.
Shares in SGX and ASX were suspended from trading on Friday afternoon, with the Australian group adding it was in talks about a “possible business combination”.
ASX did not name the party that had “reactivated confidential discussions” but people close to the situation said Robert Elstone, ASX chief executive, had held merger talks with Magnus Böcker, his SGX counterpart. One of those people cautioned that SGX may hit delays and an offer may not materialise.
FSA extends temporary measures regarding restrictions on short selling and purchase of own stocks by listed companies
October 22, 2010--1.The following regulatory measures on short selling are currently in place, with regard to all listed stocks in Japan:
1) An "uptick rule requirement" which prohibits, in principle, short selling at prices no higher than the latest market price;
2) Requirements for traders to verify and flag whether or not the transactions in question are short selling; and
3) Request the exchanges to make daily announcements on their aggregate price of short selling regarding all securities and aggregate price of short selling by sector (The announcements have been made sequentially since October 14, 2008). (See the FSA press release on October 14, 2008.)
In addition, the Financial Services Agency (FSA) has put in force the following measures, as temporary measures effective until October 31, 2010 (See the FSA press release on October 27, 2008. press release on March 27, 2009. press release on July 28, 2009. press release on October 23, 2009. press release on January 22, 2010. press release on April 23, 2010. press release on July 26, 2010.):
1) Naked short selling (short selling in which stocks are not borrowed at the time of selling) is prohibited (effective since October 30, 2008); and
2) Holders of a short position of a certain level or more (in principle, 0.25 percent or more of outstanding issued stocks) are required to report to exchanges through securities firms. Exchanges are required to publicly disclose such information (effective since November 7, 2008).
DB Global Equity Index & ETF Research-- Asia-Pacific ETP Market Weekly Review
October 21, 2010--Market Overview
There are 239 equity based ETFs in the Asia Pacific region with 332 listings across 12 countries and 15 exchanges. Japan has the largest market share by AUM accounting for 40.07% of the whole market, whilst Hong Kong has the largest market share by turnover with 35.39%).
There have been three new listing since October 1st, Samsung Investment Trust launched its third commodity ETP product and the second Gold tracker on the Korea Stock Exchange. Benchmark Asset Management listed a new Infrastructure sector fund, the first of its kind in the National Stock Exchange of India. And last but not least, Vanguard launched a new fund tracking Australian listed Property Securities. This new product, listed on the Australian Stock Exchange, carries Vanguard's low cost approach, and has been implemented as an additional share class of Vanguard's A$2 bn existing index fund, an approach widely used by the firm in the US. The new fund will charge 6 basis points less than its direct competitor, State Street's SPDR S&P/ASX 200 Listed Property Fund.
Turnover
Monthly average daily turnover rose 20.4% in the last week. Turnover for the previous week was USD 1,093m. The largest ETF by turnover was the iShares Asia Trust - iShares FTSE/Xinhua A50 China Tracker issued by BlackRock with USD 199m accounting for 18.2% of total turnover.
Assets Under Management
AUM rose 3.4% in the previous week. AUM as of Oct 15th was USD 78.3bn. The largest ETF by AUM is the TOPIX ETF managed by Nomura Asset Management with AUM of USD 10.4bn.
To request a copy of the report
IMF Regional Economic Outlook: Asia and Pacific
Consolidating the Recovery and Building Sustainable Growth
Regional growth forecast at 8 percent
Emerging signs of inflationary pressures in some economies
Continued large capital inflows may pose challenges for policymakers
October 21, 2010--After leading the global recovery for a second year, Asia’s economic outlook remains positive but, in its latest report on the state of the region’s economy, the IMF cautions that inflationary pressures are emerging.
In view of the strong expansion under way, the report says Asia has reached the threshold to normalize policy stances across the region.
In their twice-yearly overview of the Asia and Pacific region, IMF economists say growth in the first half of 2010 was well above trend in almost all regional economies, prompting the Fund to revise up its growth forecast to 8 percent, nearly 1 percentage point higher than its April forecast.
“The rebound in global manufacturing fueled exports and investment in the region, and private consumption remained strong as labor markets continued to improve, ” said Anoop Singh, head of the IMF’s Asia and Pacific Department, at the launch of the Asia and Pacific Regional Economic Outlook in Jakarta, Indonesia. The report is being launched in Indonesia and Singapore.
Variable growth
Economies across Asia are expanding strongly, with China and India leading the way with projected growth rates of 10.5 percent and 9.7 percent respectively. Indonesia is expected to grow by 6 percent, while growth in Japan is projected at 2.8 percent. The report also predicts that regional growth will moderate to a more sustainable pace of 6.8 percent next year.
Inflationary pressures are continuing to build, according to the analysis, while prices in some property markets are growing at double-digit rates. IMF economists believe the time has come for countries in the region to normalize monetary and fiscal policy stances.
The report highlights the need for further tightening of monetary policy in many countries, including through greater exchange rate appreciation. A faster withdrawal of the fiscal stimulus put in place during the global financial crisis would also help guard against the risks of overheating.
Asian Megacities Threatened By Climate Change – Report
October 21, 2010-- Asia’s coastal megacities will flood more often, on a larger scale, and affect millions more people, if current climate change trends continue, a new report warns.
The report Climate Risks and Adaptation in Asian Coastal Megacities examines the impact of climate change on Bangkok, Ho Chi Minh City, and Manila, under a range of different scenarios through to 2050. The report is the product of a two-year collaborative study by the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA) and the World Bank. It was released here today at the Asia Pacific Climate Change Adaptation Forum.
The report finds that costs from major flooding events on infrastructure and the economy could run into the billions of dollars, with urban poor populations likely to be the hardest hit. It concludes that all three cities need to take targeted, city-specific and cutting edge approaches to meet these challenges.
Bangkok, Ho Chi Minh City, and Manila all have populations close to or over 10 million. Two are capital cities and all three are centers of national and regional economic growth contributing substantially to the GDP of the respective countries. As coastal megacities, all face increased climate-related risks such as rising sea levels and an increased frequency of extreme weather events. While commendable measures to counteract flooding have already been taken by these cities, much more needs to be done, the report argues.
For cities to address future climate related risks, sound urban environmental management is crucial. Land subsidence due to groundwater pumping, dumping of solid waste into city canals and waterways, clogged drainage systems, and deforestation in the upper watershed all contribute to urban flooding. Better management of these urban environmental issues will help manage future climate-related impacts.
view the report-Climate Risks and Adaptation in Asian Coastal Megacities
MAS Issues Response to Feedback on Proposals to the Regulatory Regime for Listed and Unlisted Investment Products
October 21, 2010-...MAS has issued its response to feedback on the proposals in the Consultation Paper on the Regulatory Regime for Listed and Unlisted Investment Products, which was published on 28 January 2010.
2. MAS received extensive feedback from consumers and the industry, which we have carefully reviewed and considered. MAS thanks all respondents for their supportive and useful feedback.
3. MAS' response addresses feedback on the following proposals:
(i) Financial advisers to put in place formal policies and procedures on the sale of investment products;
(ii) Intermediaries to conduct a Customer Knowledge Assessment prior to a sale to assess whether a customer who wishes to purchase an unlisted investment product has the relevant knowledge or experience to understand the risks and features of the product;
(iii) Intermediaries to conduct a Customer Account Review to ascertain whether a customer who wishes to purchase a listed investment product has the relevant knowledge or experience to understand the risks and features of derivatives, before approving the customer’s account for trading such products;
view the MAS' response to the feedback received
Bursa Malaysia Extends CBRS Research Scheme To Address Market's Need For Investment Information - Listed Companies Covered Under CBRS To Enjoy Greater Profiling And Visibility
Listed companies covered under CBRS to enjoy greater profiling and visibility
October 20, 2010--CMDF-Bursa Malaysia Research Scheme (CBRS) has embarked on its third phase this month after a successful run since its inception five years ago. CBRS, which is open to participation by all companies listed on Bursa Malaysia, is aimed at ensuring that under-researched companies get adequate research coverage by analysts. This will ultimately support the Exchange's continuous call to facilitate informed investing via wider research coverage.
Bursa Malaysia's Chief Executive Officer, Dato' Yusli Mohamed Yusoff said, "Research coverage has an impact on trading activity and liquidity as it plays an important role in conveying the company's growth and business plans. As the market places high regard for research reports, we see the value of companies being researched having better opportunities of gaining investor attention."
The market feedback for the scheme has been positive with requests for more in-depth coverage. The CBRS reports will contain analyses and views on company fundamentals including industry prospects, its business and management, performance, earnings outlook and competitive landscape. This will give investors better appreciation of its content while facilitating comparison where applicable.
Axis Mutual Fund launches Axis Gold ETF
October 20, 2010--Axis Mutual Fund has launched Axis Gold ETF, an open ended Gold Exchange Traded Fund. The scheme offers investors the opportunity to invest in Gold without actually bearing the risk of storage and safekeeping. Investors will get 99.5% purity at prevailing market prices.
The investment objective of the Scheme is to generate returns that are in line with the performance of gold. Domestic price of gold will be the benchmark for the scheme.
Mr. Rajiv Anand, MD & CEO, Axis AMC while speaking about Axis Gold ETF said, “We endeavour to offer the entire spectrum of products to our investors to choose from. We have tried to gradually add to our bouquet of products ranging from fixed income, equity, hybrid and now gold. Axis Gold ETF is an effective investment instrument to diversify the portfolio.”
The New Fund Offer (NFO) open for subscription from October 20, 2010 to November 03, 2010. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.
During New Fund Offer period, each unit of the scheme will be issued at a face value of Rs 100 plus premium equivalent to the difference between the allotment price & the face value of Rs 100.
The minimum application amount during NFO for retail investor is Rs 5000 and in multiples of Rs 1 thereafter. For Authorized Participants: 1 kilogram (KG) gold per application and in multiples of 1 kilogram (KG) gold thereafter. The gold should be of finesses of 995 parts per 1000, i.e. 99.5%. Post the NFO period units of the scheme will be listed on the National Stock Exchange and can be traded like equity shares.
The entry and exit load charge will be nil for the scheme.
The scheme will allocate 95% - 100% of assets in gold with medium risk profile. It would further allocate upto 5% of assets in money market instruments with low to medium risk profile. The cumulative gross exposure through gold, money market instruments and derivative positions, if any, shall not exceed 100% of the net assets of the scheme. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure.
The schemes performance will be benchmarked against Domestic Price of Gold.
The scheme will be managed by Anurag Mittal.
China's economic growth slows to 9.6%
October 20, 2010--China's economic growth slowed to 9.6% in the third quarter from the same period a year earlier, the National Bureau of Statistics reported Thursday. The result compared to 10.3% growth in the second quarter
and was just slightly above a 9.5% average forecast from a survey reported by Dow Jones Newswires. Consumer prices for September rose 3.6% year-on-year, as expected by the Dow Jones survey, ticking up from a 3.5% gain in August. Producer prices were up 4.3%, matching August's increase and coming in above a 4.1% forecast.read more
East Asia and Pacific Economic Update - Robust Recovery, Rising Risks October 2010
October 19, 2010--KEY FINDINGS
A ROBUST RECOVERY
Developing East Asia’s growth has rebounded rapidly. Output has recovered to above pre-crisis levels throughout the region, expanding at near pre-crisis rates in some countries. Real GDP growth is estimated to rise 8.9% in 2010, up 0.2% from our previous forecast, and in line with the average growth rate during 2000-2008.
China remains the regional leader with an expansion of 9.5%. For the first time in a decade, five other countries are projected to expand by 7 percent or more (Thailand, Malaysia, Lao PDR, Mongolia, and PNG). Private sector investment is driving growth again, confidence is on the rise, and trade flows have returned to pre-crisis levels.
With output gaps closing and private investment recovering strongly, authorities in most East Asian countries are cautiously unwinding their stimulus measures. Fiscal deficits are likely to remain higher than before the crisis, at least for a while. Their gradual reduction over time allows the authorities to address infrastructure gaps made more urgent by the crisis and maintain social safety nets to protect the poor, and provides an appropriate defense against subdued prospects for advanced economies.
...WITH RISING RISKS
Capital inflows have risen sharply this year, driven by abundant global liquidity in search of yield, combined with expectations of stronger growth in the region than abroad.
read more of the press release
view executive summary-October 2010 East Asia and Pacific Economic Update
