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SSE Central SOEs ETF Launched
October 29, 2009--October 27 witnessed the 1st ETF, namely, the SSE Central State-owned Enterprises ETF Index Fund, on the market in 3 years after General Manager Guo Tehua of ICBC Credit Suisse Asset Management Co., Ltd. (ICBCCS) and President Chen Geng of Guotai Junan Securities Co., Ltd. stroke the gong to announce the opening of trade on the Shanghai Stock Exchange (SSE) that day.
The new product provides the investors who keep their eyes on the sector of the state-owned enterprises (SOEs) with another high-efficient investment instrument. All this will further activate the SOEs sector and ETF trading and attract more investors by offering more opportunities for investment in the SOEs.
Relevant officials from the SSE and China Securities Index Co., Ltd. as well as nearly a hundred of guests from several securities dealers and assets management institutions extended their congratulations. ICBCCS General Manager Guo Tehua and SSE Vice President Liu Xiaodong signed the "Agreement on Listing".
It is learnt that the SSE Central SOEs ETF, the 1st listed ETF in 3 years and the first of its kind ever in China, tracks the SSE Central SOEs Index, which pools 50 stocks of listed companies of SOEs with large market capitalization and sufficient liquidity on the SSE. So, it is also called the "super SOEs blue chip". Benefited from the RMB4 trillion economic stimulus plan of the state and the increasingly speeding process for reorganization of SOEs, the value of investment in SOEs has long been cherished by the investors. Statistics show that in 2009, such indicators as the P/E and P/B ratios of the SSE Central SOEs Index are the lowest among the main indices. By October 21, 2009, the average P/E ratio of the SSE Central SOEs 50 Index had been 22.16 times, lower than that of the SSE Composite Index of 26.63 times, that of the SSE 50 Index of 23.24 times and that of the CSI 300 Index of 25.75 times. Over RMB3 billion were achieved through online cash subscription in a single day, raising 4.5 billion units from a great many excited subscribers during the period of issuing SSE Central SOEs ETF.
The securities code for listing and trading of SSE Central SOEs ETF is "510060", with the code for subscription and redemption of "510061". Investors can trade the fund on the secondary market in the same way of purchase and sale of stocks. Besides, they can also make subscription and redemption for the fund through the package portfolio of constituent stocks of the SSE Central SOEs Index on the primary market, with a minimum requirement of 1 million fund units for each lot.
Source:Shanghai Securities News
TSE and TOCOM Agree to Establish Joint Venture to for Setting Up Emissions Trading
October 29, 2009--Tokyo Stock Exchange Group, Inc. (TSE Group) and Tokyo Commodity Exchange, Inc. (TOCOM) reached an agreement to establish a joint venture in the future. The objective of the new company will be to set up an emissions trading exchange, in order to contribute to the reduction of greenhouse gases and facilitate emissions trading. Both parties had already signed a Memorandum of Understanding (MOU) on comprehensive mutual cooperation in January 2008.
In a bid to stop global warming, worldwide efforts are being made to reduce greenhouse gases. In Japan, achieving numerical targets agreed in the Kyoto Protocol and drafting post-Kyoto mid-term targets have become an important policy issue. In addition, the “experimental introduction of an integrated domestic market for emissions trading” began last autumn.
In light of this situation, while an expansion of emissions trading is foreseen in the future, the recent financial crisis has led to the re-acknowledgement of the importance of the features of an exchange such as high levels of liquidity and transparency as well as stable and reliable settlement.
Under such circumstances, the TSE Group and TOCOM concur that it is necessary to take concrete steps toward the establishment of an emissions trading exchange. The two parties have vast experience and expertise on forming effective markets and large participant bases in the course of operating their respective securities and commodities exchanges over the years. They agree that it is their social responsibility to jointly apply such knowledge and experience to the establishment of an emissions trading exchange.
In addition, both parties will work together to consider the design and rules for the emissions trading exchange. Last year, the Tokyo Stock Exchange (TSE), a market operator wholly-owned by the TSE Group, set up the “TSE Carbon Market Study Group” to examine practical issues required to establish a carbon market exchange with experts on emissions trading. The study group is scheduled to be re-launched soon as a study group jointly operated by both TSE and TOCOM. It will be a venue for discussions and examinations in more detail.
The joint venture company is also expected to gather opinions from concerned parties for carrying out studies in a wide ranging field related to emissions trading.
Source: TOCOM
Changes of Designated Securities for Short Selling
October 29, 2009--The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), announces that with effect from 5 November 2009 (Thursday), 58 additional securities will be eligible for short selling and 11 existing designated securities will be removed from the list. The total number of designated securities for short selling will be 445 after the revision.
The securities to be added to the list of designated securities and the securities to be removed from such list are shown in the attachment. The revised list of all designated securities is also available on the HKEx website.
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Source: STOCK EXCHANGE OF HONG KONG (HKex)
Morgan Stanley faces China setbacks
October 29, 2009--When China Investment Corp invested $5bn in Morgan Stanley in late 2007 the US bank was widely seen as having stolen a march on its investment banking rivals.
With China’s $200bn sovereign wealth fund sitting high on the share register, Morgan Stanley surely now had the contacts to help unlock doors in a country which foreign groups find difficult to navigate.
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Source: FT.com
DB Index Research -- Weekly ETF Reports -- Asia -Pacific
October 28, 2009--Highlights
Market Overview
There are 187 equity based ETFs in the Asia Pacific region with 246 listings across 12 countries and 15 exchanges. Japan has the largest market share by AUM accounting for 41.03% of the whole market, whilst China has the largest market share by turnover with 40.40%.
There were four new listings in the last week. Maps Investement Mgmt Co listed one new ETF on the Korean Stock Exchange. Lyxor cross-listed 3 ETFs on the Singapore Stock Exchange.
Turnover
Monthly average daily turnover declined 4.6% in the last week. Turnover for the previous week was USD 800m. The largest ETF by turnover was the China 50 ETF issued by China Asset Management with USD 185m accounting for 23.1% of total turnover.
Assets Under Management
AUM declined 2.8% in the previous week. AUM as of Oct 26th were USD 60.0bn. The largest ETF by AUM is the iShares Asia Trust - iShares FTSE/Xinhua A50 China Tracker, managed by BGI, with AUM of USD 6.6bn.
To request a copy of the report click here
Source: Aram Flores and Shan Lan -DB Index Research
FTSE and Bursa Malaysia move to semi-annual liquidity review of index series
October 28, 2009--In response to Malaysia’s market initiatives to enhance its capital market and liquidity, the FTSE Bursa Malaysia Index Advisory Committee has approved the move to a semi-annual liquidity review of the FTSE Bursa Malaysia Index Series. The increase in frequency of the liquidity review from an annual to a semi-annual basis is one step further in evolving the index series to better reflect the liquidity of the investable market.
Indices play an increasingly important role in markets today as a tool for stimulating domestic investment and attracting global capital flows. For this reason, the index eligibility criteria are important considerations for investors who expect the index constituents to have sufficient liquidity to enable easy and efficient trading. An increase in the frequency of the liquidity review for the FTSE Bursa Malaysia Index Series will provide more robust indices that are in tune with the market liquidity. This will align with the needs of global investors and increase the profile of listed companies which meet these criteria.
Dato’ Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, “Liquidity is a key area of focus for Bursa Malaysia and the more frequent market reviews will enable market participants to track the index in a broader and more comprehensive manner. This will also allow investors to have a closer assessment on the performance of the public listed companies to create a more efficient market.”
Paul Hoff, Managing Director, Asia Pacific from FTSE Group added, “As an index provider, it is important to work with the investment community and local index partners such as Bursa Malaysia to understand the needs of both domestic and international investors, ensuring these needs are addressed through a robust index methodology. We have found that more frequent reviews aid investment professionals who track the indices by improving the replicability of the index.”
The liquidity review will be conducted semi-annually in June and December starting from June 2010 based on turnover in the twelve months prior to the review. Constituents of the FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Fledgling Index will also be reviewed semi-annually starting from the June 2010 review.
For more information on the FTSE Bursa Malaysia Index Series, including the liquidity screening methodology, please visit www.ftse.com/bursamalaysia.
Source: FTSE
Shenzhen Stock Exchange in efforts to suppress high speculation on first ChiNext listing day
October 28, 2009--As the first ChiNext companies will debut on the trading, SZSE carries out the trading restriction measure with regard to major abnormal transactions for the sake of preventing high speculation on the first trading day, safeguarding the securities market order, protecting the legitimate interests and rights of investors.
The relevant person in charge of the SZSE expressed that the CSRC attached high importance to the high speculation on the first ChiNext trading day. At the ChiNext kickoff ceremony, Shang Fulin, Chairman of the CSRC specially stressed that the regulatory departments shall closely monitor the first trading on ChiNext board, prevent the high speculation, firmly crack down on acts violating laws or regulations, including rigging stock prices and insider trading and maintain the normal market trading order with great effort.
The person also said that the SZSE consistently follows the principle of stringent supervision. On the basis of widespread and deep analysis and research, the SZSE will strictly comply with the unified arrangement of the CSRC to hold down the high speculation on the first ChiNext trading day with all strength from the following four points: One is to pop out the emphasis, intensify the supervision and regulation, carry out the key-point monitoring on key members, key business offices, major accounts and key stocks. The second point is to closely monitor the first day trading on ChiNext board, carry out the precise crackdown on accounts affecting stock prices or trading volume, such as block declaration, continuous declaration, high price declaration, fake declaration. The third point is to strengthen supervision on follow-up trading, intensify the information disclosure, implement the special trading suspension system, give a market risk alert and suppress continued speculation. The last point is to further raise the punishment level, with respect to securities companies which ineffectively manage clients or connive at clients’ participation in speculation, and the SZSE will impose on these companies disciplinary sanction or other measures in accordance with the relevant laws and regulations.
The person added that for the ChiNext board as a newly-born thing, the good start is crucial to the steady and healthy development of ChiNext. And at the same time, the person seriously reminded that investors shall clearly understand the special risks of ChiNext board, make a rational investment, lawfully trade securities while seeing the bright future for the ChiNext board.
Source: Shenzhen Stock Exchange
A new project in the MICEX Group’s currency market. Access to trading in the Unified Trading Session of credit institutions - residents of EurAsEC member countries
October 27, 2009--Beginning from 2 November 2009, credit institutions – residents of the member states of the Eurasian Economic Community will be given access to trading in the Unified Trading Session on the MICEX.
In order to expand the circle of participants in the Unified Trading Session (UTS) of inter-bank currency exchanges, the MICEX is implementing a project in the on-exchange market aimed at providing access to trading in the UTS to credit institutions – residents of the member states of the Eurasian Economic Community (EurAsEC) that have joined the Agreement on Cooperation in the organization of the integrated currency market of EurAsEC member states of January 25, 2006.
As part of this project, in accordance with the decision of the Board of the MICEX of 23 October, 2009, amendments to the Rules of purchase and sale of foreign currency in the Unified Trading Session of inter-bank currency exchanges, approved by the Board of the MICEX on 16 March 2009, will come into force on November 2, 2009. Also on that date, amendments to the Rules of membership in the MICEX Currency Market Section, approved by the Board of the MICEX on 5 April, 2007, as amended on 22 October, 2007 and 16 March, 2009, will come into force.
Amendments to the above internal documents of the on-exchange currency market set out requirements for participation in trading in the UTC for banks – residents of member states of the EurAsEC and suggest that resident banks of EurAsEC member states that have joined the EurAsEC Agreement will have direct access to the MICEX currency market, i.e., they will be member of the MICEX Currency Market Section and will be able to conduct operations in the UTS by concluding transactions with The National Clearing Centre, which is the central counterparty for all transactions in the on-exchange market, both for banks – residents of Russia and for banks – residents of the EurAsEC member states.
Source: MICEX Group
ISE and MICEX sign Memorandum of Understanding for cooperation
October 27, 2009--The Istanbul Stock Exchange and Moscow Interbank Currency Exchange (MICEX) signed a Memorandum of Understanding (MoU) in Istanbul on October 26th, 2009. The MoU was signed by Mr. Hüseyin Erkan, ISE Chairman & CEO, and Mr. Konstantin K. Korischenko, MICEX President, in the presence of Prof. Vedat Akgiray, Chairman of the Capital Markets Board of Turkey.
The MoU envisages the two parties to cooperate with each other to facilitate the development of channels of communication and to foster a continuing relationship between the two parties for the benefit of the Turkish and Russian securities markets. Within the framework of the MoU, the parties intend to organize regular meetings between the senior executives and also arrange secondment of staff in order to enhance understanding of developments in each market. Further, the ISE and MICEX plan to carry out joint research projects for the purpose of calculation of a joint composite stock index, which may be the basis of index related products that can be traded on both markets.
Mr. Konstantin K. Korischenko, MICEX President, said “This MoU opens the way for our two Exchanges to start practical dialogue aimed at evaluating areas of bilateralcooperation for the sake of our national markets”. Mr. Hüseyin Erkan, the ISE Chairman & CEO, said “We are very pleased to sign this MoU with MICEX. I am sure that it will facilitate and accelerate our work especially in terms of calculating joint composite indices to be the basis of index related products tradeable on both markets. IT related solutions is also another essential part of this MoU. We also strongly support the cooperation of the central clearing and depository institutions of both markets.”
The MICEX group is an integrated exchange that provides services related to electronic trading, clearing, settlements as well as depository and information services on the basis of a single technological platform. The Group serves leading Russian banks and broker companies on a number of key financial markets including the currency market, the government bonds market, the share market, the market for corporate and regional bonds, the derivatives market and the money market.
The ISE provides trading in various instruments, including stocks, bonds and bills, real estate certificates, and ETFs in an organized, transparent and reliable environment for local and international investors with its modern technological capabilities.
Source: Istanbul Stock Exchange (ISE)
Collective and Structured Products Market to be activated as from November 13, 2009
October 26, 2009-Collective and Structured Products Market, shall be activated as of the date of November 13, 2009, following System software release to be made on November 12, 2009.
Stocks and exchange-traded funds to be included in the Collective and Structured Products Market shall start being traded on the basis of continuous auction as of the date of November 13, 2009. Upon completion of the regulatory framework, the warrants of the financial intermediary institutions shall start being traded in the Collective and Structured Products Market under the title of structured products.
The principles related to the other transaction methods planned to be applied in the Collective and Structured Products Market (continuous auction with market maker and single price) shall be separately regulated and the principles and enforcement dates of these transaction methods shall be announced to the public.
Principles of Collective and Structured Products Market
Source: Istanbul Stock Exchange (ISE)
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