DB-Synthetic Equity & Index Strategy-Asia-Pac Weekly ETF Market Review-ETP Market recorded $1.9bn inflows in November
December 4, 2012--Market Review
Last week, Asia-Pacific region had mixed markets. From north to south, Japan (Nikkei 225) appreciated by 0.85%, Korea (KOSPI2) gained 1.12%, China (CSI 300) slid by 2.42%, Hong Kong (HSI) increased by 0.53%, Singapore (FSSTI) rose by 2.70%, and Australia (S&P/ASX 200) climbed by 2.11% over theprevious week.
New ETP launches
Last week, five new ETPs were launched in the Asia-Pacific market. ETF Securities Ltd listed three commodity ETFs on Hong Kong Exchange tracking physical commodities; Gold, Silver & Platinum respectively. Korea Investment Trust Mg listed one equity ETF on Korea Stock Exchange tracking CSI 300 Index and BetaShares Capital Ltd listed one equity ETF on Australian Securities Exchange tracking S&P/ASX 20 Index.
ETP Monthly Flows
Asia-Pacific ETP market recorded monthly cash inflows of $1.9bn for the month of November, taking the YTD cash flows to +$31.9bn or 34.8% of last year’s end AUM. Prior to that, Asia-Pacific region recorded monthly flows of $2.4bn, $1.5bn, $2bn and 5.6$bn for July, August, September and October respectively. Within Equity products, ETFs offering exposure to China, South Korea and Hong Kong received robust cash inflows of $1.2bn, $347mn, and $303mn respectively.
Turnover Review
Asia-Pacific ETP turnover totaled $7.2bn for last week, 6.5% up from the previous week’s total. South Korea continues to be on top of the turnover ranking with $2.6bn, followed by Hong Kong ($2.1bn), China ($1.3bn), Japan ($0.7bn), and Taiwan ($0.2bn). Among Equity ETFs, Emerging Country, Leveraged Strategy, Asia Pac Developed Country and Short Strategy ETFs recorded total turnover of $3.4bn, $1.2bn, $1.5bn and $0.6bn respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $107mn.
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Source: Deutsche Bank -Synthetic Equity & Index Strategy-Asia
Metrobank unit setting up exchange-traded fund
December 3, 2012--While companies overseas are cutting back on their exchange-traded fund (ETF) offerings due to intense competition, local ones are just starting to get in the game.
First Metro Investment Corp. (FMIC), the investment banking unit of George Ty-led Metrobank group, announced Monday, December 3, its board approved the creation of an ETF with initial capitalization of P250 million, subject to regulatory approvals.
November 30, 2012--SC's Shariah Advisory Council has published the List of Shariah-compliant Securities.
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Source: Securities Commission Malaysia
Economic growth declines to 5.3% in July-Sept quarter
November 30, 2012--The Indian economy grew by 5.3 per cent in the July-September period of the current financial year (2012-13), pulled down by poor performance of manufacturing and agriculture sectors, showing persistent signs of slowdown.
The gross domestic product ( GDP) had expanded by 6.7 per cent in the same period of last fiscal.
It had grown by 5.5 per cent in the first quarter (April-June) of 2012-13.
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Source: Times of India
Deutsche eying synthetic-direct ETF range in Asia
November 29, 2012--Deutsche Bank's db X-trackers is in talks with regulators in Hong Kong and Singapore about launching dual synthetic-and physical-tracking versions of its exchange traded funds.
The fund unit announced plans this month to give its European customers the option of either replication method when investing in certain ETFs tracking the equity markets in Japan, Germany and the US, UK and eurozone. Until now, db X-trackers has focused on synthetic ETFs. Its physical ETFs will begin to appear next month, and the rollout will continue into 2013.
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Source: FT.com
New cross-border index to be launched
November 28, 2012--CES China 120 Index to track HK & mainland listed-firms' performances
The Hong Kong Exchanges and Clearing Ltd (HKEx), the Shanghai Stock Exchange and Shenzhen Stock Exchange will introduce the first cross-border equity market index to tap the growing demand of investors seeking exposure to mainland assets.
The CES China 120 Index, the first index in the new CESC Cross Border Index Series, covers 40 HKEx-listed mainland companies as well as 80 companies listed on the Shanghai and Shenzhen exchanges.
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Source: China Daily
Kimco launches A-share ETF in Korea
November 28, 2012--Exchange (KRX) will list Kindex CSI300 ETF on its exchange today.
This ETF is the first China A-share index ETF to be created in Korea, and it will be managed by Korea Investment Management Company (Kimco). It has an underlying index of CSI300, ...
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Source: Asian Investor
E Fund eyes RQFII bump
November 28, 2012--Chinese asset management firm E Fund said Tuesday it is considering applying for an additional quota under the Renminbi Qualified Foreign Institutional Investor (RQFII) program, amid increasing demand for yuan-related products due to improved sentiment toward the economy and China's currency.
RQFII is a pilot scheme to allow foreign investors to pursue yuan assets in China's bond and stock markets.
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Source: Global Times
TSE has published the index value of TSE Home Price Index for September
TSE has published the index value of TSE Home Price Index for September on November 27, 2012--The index value of TSE Home Price Index (Used Condominium,Composite of Tokyo Metro Area) is 76.71 points.
The index value of TSE Home Price Index (Used Condominium, Tokyo) is 80.16
points. The index value of TSE Home Price Index (Used Condominium, Kanagawa) is 77.57 points.
The index value of TSE Home Price Index (Used Condominium, Chiba) is 65.78. The index value of TSE Home Price Index (Used Condominium, Saitama) is 66.04 points.
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Source: Tokyo Stock Exchange
IMF Working paper-Is China Over-Investing and Does it Matter?
November 27, 2012--Summary:
Now close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It finds that China's capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out, partly due to a surge in investment over the last decade.
Moreover, its investment is significantly higher than suggested by cross-country panel estimation. This deviation has been accumulating over the last decade, and at nearly 10 percent of GDP is now larger and more persistent than experienced by other Asian economies leading up to the Asian crisis. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against dependency on external funding. But this does not mean that the cost is absent. Rather, it is distributed to other sectors of the economy through a hidden transfer of resources, estimated at an average of 4 percent of GDP per year.
view the IMF Working paper-Is China Over-Investing and Does it Matter?
Source: IMF
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