TOCOM Adopts Delivery by Physicals for Precious Metals Market
August 2, 2017--The Tokyo Commodity Exchange, Inc. (TOCOM) announced today Precious Metals Market rule changes for Declared Delivery and Customized Delivery.
The new rules allow settlement through the delivery of bars instead of warehouse receipts where there is consent between buyer and seller. The updated rules took effect on August 1 and are applicable to the August 2017 contracts onward.
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Source: Tokyo Commodity Exchange, Inc. (TOCOM)
BetaShares-5 things to know before you invest in ETFs
August 1, 2017--With the Australian Exchange Traded Fund (ETF) industry just shy of $30B in assets and ETFs now being more actively traded than stocks in the US*, it's unsurprising that more and more investors are starting to adopt ETFs as core building blocks of their portfolios.
One reason why this trend may be set to continue is that exchange traded products have evolved from being more than just index tracking strategies.
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Source: betashares.com.au
Hong Kong Stock Exchange to Launch Blockchain-Powered Market in 2018
August 1, 2017--The Hong Kong Stock Exchange (HKEX) is planning to launch a blockchain-powered private market aimed at helping smaller firms obtain financing.
HKEX chief executive Charles Li detailed the plan, which would play out through a separate venture dubbed HKEX Private Market, in an August 1 note.
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Source: coindesk.com
IMF-For Japan's Economy, Now Is the Time to Step Up Reforms
July 31, 2017--Japan's economy is expected to grow again this year-at 1.3 percent-thanks to a continued pickup in trade and temporary fiscal support.
But a rapidly aging population and a shrinking workforce mean that the country will need to speed up reforms to boost wages, productivity, and growth, said the IMF in its annual review of the Japanese economy.
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Source: IMF
IMF County Report-Japan: Selected Issues
July 31, 2017--WHY ISN'T PRIVATE INVESTMENT HIGHER IN JAPAN?1
What is holding back private investment in Japan? Are market competition and regulation playing a
role in depressing investment? A novel firm-level dataset with almost half a million Japanese firms is
used to address these questions.
Findings support the hypothesis that sectoral concentration (i.e.
reduced competition) has had a significant negative impact on firm- and sector-level investment.
Results point to potential benefits from decreasing barriers to entry, protection of incumbents, and
market concentration in some sectors. OECD measures of product market regulation indicate that there
is room for further reform in the gas and telecom sectors, and deregulation of professional services.
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Source: IMF
IMF Country report-Singapore: Selected Issues
July 28, 2017--ASSESSING BANKING SECTOR PERFORMANCE1
A. Banking Sector Trends
1. The financial cycle is firming after a prolonged moderation. Credit expanded mildly in 2016 with both lending to residents and nonresident picking up (Figure 1).
The pullback in trade financing since mid-2014 reflected unwinding of RMB carry-trades as the interest differential between the Chinese Renminbi (RMB) and the U.S. dollar narrowed and the Renminbi came under depreciation pressure. Overall lending activity firmed further in 2017:Q1, underpinned by domestic demand for credit, including in the interbank market, and the trade-related sectors. Additionally, a
recovery in regional trade and an acceleration in growth momentum in the Eurozone helped
support non-bank cross-border lending.
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Source: IMF
Hang Seng Indexes Licenses Fubon to Use Hang Seng China Enterprises Index as Basis for ETF
July 28, 2017--Hang Seng Indexes Company Limited ("Hang Seng Indexes") has licensed the Hang Seng China Enterprises Index ("HSCEI") to Fubon Asset Management Company Limited ("Fubon") to serve as the underlying index for the creation of an exchange-traded fund ("ETF").
The ETF was listed on the Taiwan Stock Exchange today.
The HSCEI is the leading barometer for tracking the performance of mainland China enterprises listed in Hong Kong.
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Source: Hang Seng Indexes
China willing to sacrifice growth to manage systemic risks: senior official
July 27, 2017-- A senior Chinese economic official on Thursday indicated that policymakers would be willing to sacrifice some short-term economic growth in order to deal with systemic risks.
Beijing is trying to contain rising debt and defuse property bubbles amid fears such risks could derail the world's second-largest economy if not handled well, but policymakers will be treading warily ahead of a key party meeting later this year.
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Source: Reuters
Bond Basics: Interest rate risk and duration
July 27, 2017--BetaShares recently expanded its product range to include our first fixed income/bond fund, the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX Code: QPON).
Due to the level of interest we have had in this fund so far, I thought it would be timely to write a short series on the basics of Bonds. In this first part in the series, I focus on the concepts of "interest rate risk" and "duration".
The main objective of this is to make sure that investors who are currently invested in bonds (particularly via fixed rate bonds) understand the key features of such bonds.
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Source: betashares.com.au
Is the $A too high? An update on our currency valuation models
July 27, 2017--The Australian dollar has recently broken above the top-end of its previous year-long range against the US dollar. In light of this event, this note updates our $A valuation models
While the models suggest the $A could remain north of US70c over at least the coming year, they do suggest limited further upside unless iron-ore prices continue to rise.
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Source: betashares.com.au
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