BetaShares Market Trends: February 2019
February 5, 2019--Major Asset Classes-global equities storm back
Global equities returned a strong 7.3% in local currency terms during January, unwinding their 7.2% slump in December. The return in $A terms, however, was a more muted 4.5% reflecting a rebound in the Australian dollar over the month.
Several factors supported the equity rebound, though the most important was likely an easing in US interest rate fears as the Federal Reserve turned more "dovish". Indeed, after having raised rates four times in 2018, the Fed now says it can be more "patient" in raising rates further, and the market has largely priced out the risk of further policy tightening this year.
Other supportive factors were ongoing good economic growth indicators in the US economy, a solid start to the Q4 US earnings reporting season and encouraging signs that the US and China will conclude some form of a trade deal in coming months.
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Source: BetaShares
Promising start
February 4, 2019--Week in Review
Global equities posted further gains last week on the back of very dovish Fed commentary, capping off what's been a promising start to the year so far. Indeed, global equities returned 7.3% in local currency terms in January after posting a loss of 7.2% in December.
Australian equities returned 3.9% with solid gains across most sectors apart from financials, with the latter still being weighed down by slowing credit growth and fears of what may emanate from today's release of the Hayne Royal Commission findings.
More broadly global equities are benefiting from several positive developments since the dark days of late last year. For starters, the US Fed has been obviously shell shocked by the market rout last year (partly caused by it's own clumsy statements) and appears likely to hold rates steady at least for a few more months. Australian equities returned 3.9% with solid gains across most sectors apart from financials, with the latter still being weighed down by slowing credit growth and fears of what may emanate from today's release of the Hayne Royal Commission findings.
More broadly global equities are benefiting from several positive developments since the dark days of late last year. For starters, the US Fed has been obviously shell shocked by the market rout last year (partly caused by it's own clumsy statements) and appears likely to hold rates steady at least for a few more months.
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Source: BetaShares
China mulls combination of QFII, RQFII schemes to boost foreign investment
January 31, 2019--China's securities watchdog unveiled draft rules that will combine two existing schemes for foreign investors and expand the scope of investments.
The China Securities Regulatory Commission (CSRC) said in a statement that it has begun to consult public opinion on the new rules that will combine the Qualified Foreign Institutional Investors (QFII) program and the RMB Qualified Foreign Institutional Investors (RQFII) program.
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Source: xinhuanet.com
BetaShares Australian ETF Review-2018 in Review
January 31, 2019--Shaken, not stirred!
Despite dramatic sharemarket volatility throughout 2018, the Global ETF industry recorded significant growth over the year, reaching its 2nd highest level of net inflows ($US516B) and maintaining the positive growth trend.
The Australian ETF industry ended the year with funds under management (FuM) of ˜$41B-just shy of the record $42B, achieved in September. Read on for the key stats and figures for the year in ETFs.
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Source: BetaShares
In Asia, a More Electronified Market Feels the Impact of MiFID II
January 31, 2019--Executive Summary:
Although a tumultuous 2018 ended up being an overall positive year for most leading Asian equity brokers, owing to an active first half, the industry enters 2019 facing profound questions about how changes in regulations and market structure will affect the traditional institutional brokerage business model.
Methodology
Between July and September 2018, Greenwich Associates conducted interviews with 231 Asian equity fund managers and analysts and 104 buy-side trading desks at institutions based in Asia. Interview topics included overall market trends, compensation and broker relationships.
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Source: Greenwich Associates
ETFGI reports that assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) reached a record high of US$197 billion at the end of December 2018
January 30, 2019--ETFGI, a leading independent research and consultancy firm on trends in the Asia Pacific (ex-Japan) ETF/ETP ecosystem, reported today that that assets invested in ETFs and ETPs listed In Asia Pacific (ex-Japan) reached a record high of US$197 billion at the end of December 2018, surpassing the previous record set at the end of the previous month, according to ETFGI's December 2018 Asia Pacific (ex-Japan) ETF and ETP industry insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Assets invested in ETFs/ETPs listed In Asia Pacific (ex-Japan) increased by 2.9% during December 2018 to reach a record high of $197 Bn, beating the prior record of $191 Bn set at the end of November 2018.
Year-to-date, assets have increased by 15.6% from $170 Bn at the end of 2017.
In December 2018, ETFs/ETPs listed In Asia Pacific (ex-Japan) saw net inflows of $9.82 Bn.
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Source: ETFGI
ETFGI reports that ETFs and ETPs listed in Japan gathered net inflows of US$9.00 billion during December 2018
January 30, 2019--ETFGI, a leading independent research and consultancy firm on trends in the Japanese ETF/ETP ecosystem, reported today that that ETFs and ETPs listed in Japan gathered net new assets of US$9.00 billion during December 2018, marking 14 consecutive months of net inflows.
Year-to-date, for the whole of 2018, ETFs/ETPs listed in Japan have seen record net inflows of US$72.4 billion, surpassing the previous record for annual net inflows set in 2017 with US$52.6 billion, according to ETFGI's December 2018 Japan ETF and ETP industry insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
ETFs and ETPs listed in Japan gathered net new assets of $9.00 Bn during December 2018, marking 14 consecutive months of net inflows.
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Source: ETFGI
China's economic growth slowest since 1990 amid trade war with US
January 25, 2019--Fears China may not be able to help shore up weakening global growth as GDP figures are slowest nation has reported in 28 years
China's economy grew 6.6% in 2018, its slowest pace in almost 30 years, confirming a slowdown in the world's second largest economy that could threaten global growth.
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Source: theguardian.com
Hang Seng Indexes Licenses CCB Principal to Use Hang Seng China Enterprises Index as Basis for ETF
January 21, 2019--Hang Seng Indexes Company Limited ('Hang Seng Indexes') has licensed the Hang Seng
China Enterprises Index ('HSCEI') to CCB Principal Asset Management Co., Ltd. ('CCB
Principal') to serve as the underlying index for the creation of an exchange-traded fund ('ETF').
The ETF was listed on the Shanghai Stock Exchange on 21 January 2019.
Comprised of large-cap mainland China enterprises listed in Hong Kong, the HSCEI is a
barometer of the China market in Hong Kong. The HSCEI has 50 constituents: 40 H-shares
and 10 Red-chips and P-chips.
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Source: Hang Seng Indexes Company Limited
Launch of Hang Seng SCHK Mainland China Healthcare Index
January 21, 2019--Hang Seng Indexes Company Limited ("Hang Seng Indexes") today launched the Hang Seng
SCHK Mainland China Healthcare Index ("HSSCHI").
The HSSCHI reflects the performance of mainland China companies in the healthcare sector
that are listed in Hong Kong and are eligible for trading via the southbound trading link of the
Stock Connect Scheme. Such companies are defined as Hong Kong-listed companies with at
least 50% of their sales revenue (or profits or assets if relevant) derived from the Mainland.
Companies in the healthcare sector include companies working in areas of medical devices,
pharmaceuticals, biotechnology, and medical & aesthetic services.
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Source: Hang Seng Indexes Company Limited