Takashi Horigome

HKEX REACHES AGREEMENT WITH SSE AND SZSE TO EXPAND SCOPE OF ELIGIBLE ETFS UNDER STOCK CONNECT Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce on Friday that it has reached an agreement with Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) to expand the scope of eligible exchange-traded funds (ETFs) under Stock Connect. The eligibility criteria for ETFs for both Northbound and Southbound trading, including the assets under management requirement and the index weighting requirements, will be relaxed to support the continued development of the mutual market access programme. This expansion will further enrich investment options and enable Stock Connect investors to allocate assets in both Hong Kong and Mainland China markets in an efficient and cost-effective way. Further details of the expansion can be found in the circular published by HKEX today. The three exchanges will work closely on the business and technical preparations for the expansion, which is expected to take effect approximately three months from the date of this announcement. #ETF #StockConnect #HKEX #SSE #SZSE

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MPF Ratings released the monthly performance survey by pointing out that while a second half pullback in May left the MPF system just short of its all-time record total asset size, average MPF account balances now exceed $250,000 for the first time since January 2022 as the system produced a positive monthly return, its 3rd in 2024. US equities topped the MPF's May performance table with a return of 4.72%, as the system generated a May gain of 2.08%, to increase its year-to-date gains to 4.36%, the best first 5 calendar months’ performance since 2021 and the 8th best first 5 calendar months’ performance since MPF’s launch. Find out more here: https://lnkd.in/gRJinnVk #mpfratings #MPFRConsistentPerformers #MPFFastMover #MarketInsights #MPFMarketShare #MPFFundFlows #MPFNetReturns #MPFIndustry #pensionschemes #assetmanagement #investmentmanagement #mpf #investment #empf

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MPF Ratings released Q1 2024 MPF Asset Class Fund Flow Summary by highlighting that US equities received over $9bn of MPF’s net inflows in Q1 2024, by far the largest quarterly MPF net inflows into US equities ever recorded, and a concerning trend which Mr Chung attributes to a confluence of new fund launches, disappointing local equity results and MPF members trying to capitalize on the strong momentum of the US market. Find out more here: https://lnkd.in/eRJmq4ne #mpfratings #MPFRIntelligence #MPFRConsistentPerformers #MPFFastMover #MarketInsights #MPFMarketShare #MPFFundFlows #MPFNetReturns #MPFIndustry #pensionschemes #assetmanagement #investmentmanagement #mpf #investment #empf

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Today’s China Top Five:   💡 𝗙𝘂𝗻𝗱 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 Large ETF managers such as China Asset Management Co., Ltd., E Fund Management Co.,LTD., Harvest Fund Management and Huatai-PineBridge Fund Management Co., Ltd. (Formerly AIG-Huatai) all added more than RMB60bn in non-MMF AUM in 1Q24 to solidify their places in the top tier. Including MMFs, there are now six FMCs that manage more than RMB1tr, with Bosera Asset Management Co. the latest to join this group.   💡 𝗝𝗣 𝗠𝗼𝗿𝗴𝗮𝗻 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗥𝗲𝘀𝗵𝘂𝗳𝗳𝗹𝗲 The J.P. Morgan wholly owned securities company onshore named Lu Fang as the chairman of the board, replacing Park Pu. Greg Yu has also been promoted to general manager whilst also retaining his existing remit as head of equities. JP Morgan has had full ownership of the venture since 2021.   💡 𝗖𝗦𝗜 𝗔𝟱𝟬 𝗙𝗲𝗲𝗱𝗲𝗿𝘀 Several managers established their CSI A50 ETF feeder funds on April 23. Among them, E Fund raised the most – attracting RMB1.5bn from almost 80k investors. Fullgoal Fund Management Co., Ltd., Ping An Fund and Da Cheng each also raised over RMB600m; the latter will also add a new share class to its feeder on April 26.   💡 𝟭𝗤𝟮𝟰 𝗣𝗲𝗻𝘀𝗶𝗼𝗻 𝗨𝗽𝗱𝗮𝘁𝗲 As of the end of March, RMB1.9tr of public pension funds had been centralized at NCSSF for management, with plans to continue to increase this figure. Ministry of Human Resources and Social Security also highlighted ongoing efforts to refine the Pillar Three commercial pension program.   💡 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗔𝗨𝗠 𝗚𝗿𝗼𝘄𝘁𝗵 Bank wealth management AUM is estimated to have increased by almost RMB2tr so far in April. The surge is attributed to temporary adjustments post-quarter-end and recent deposit rate cuts, prompting a shift towards wealth management products for higher returns.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

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In the latest article for AM730, HSVM CEO Rosita Lee discussed how the new measures from the China Securities Regulatory Commission (CSRC) further enhance the ETF Connect scheme by allowing more diverse product offerings to investors. #HangSengInvestment #Investment #AssetManagement #ETF #ETFconnect #MarketInsights #HangSengBank #MarketAnalysis #InvestmentThoughtLeadership * Investments involve risks. Investors should seek independent advice. This content has not been reviewed by the Securities and Futures Commission and is intended for Hong Kong investors only.

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Nomura to leverage global resources to serve China market, says senior executive Global financial services group Nomura will continue to develop its business in China as the two-way opening of the country's capital market deepens, a senior executive has said. During the "two sessions" and the China Development Forum held last month, the Chinese government has sent positive signals of promoting high-level opening up, Kenji Teshima, head of the China Committee of Nomura Holdings, told Xinhua in a recent exclusive interview. At the same time, a slew of substantial opening-up measures in the financial sector are being implemented, providing new opportunities for foreign financial institutions, including Nomura, noted Teshima, who is also the Representative Director and CEO of Nomura Asia Pacific Holdings. Since the company set up a representative office in Beijing in 1982, it has been developing its business steadily and sustainably in the past decades. In 2019, the Nomura Orient International Securities (NOI), a joint venture in which Nomura Holdings owns a 51-percent stake, was approved, becoming one of the first foreign-controlled securities firms in China. #AI #stock #capitalmarket #securities #openingup #Nomura

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In recent years, global stock markets have shown divergent performances, leading to an increasing demand from investors to build more diversified and well-balanced investment portfolios. This demand has prompted ETF issuers from different exchanges to launch ETFs that track overseas market performances, catering to the needs of investors. In this post, HSVM CIO Wilfred Sit shared insights on how ETF fund managers construct and manage related investment portfolios, as well as provide an overview of the pricing mechanisms used by ETF market makers during trading hours. Stay tuned for valuable information on optimizing your investment strategies with ETFs! #InvestmentManagement #ETFs #Diversification *Investments involves risk (including the loss of capital invested), no one should make their investment decisions based on this content. Before investing, the relevant investment product’s offering document should be read, and independent advice should be sought. Past performance is not indicative of future performance. SFC authorization is not an endorsement or recommendation. This content has not been reviewed by the Securities and Futures Commission and is intended for Hong Kong investors only.

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Today’s China Top Five:   💡 𝗝𝗼𝗶𝗻𝘁 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 A fund management joint venture between Bank of Suzhou Co., Ltd. (56%), Temasek-backed CapitaLand (24%) and a local investment vehicle (20%) has received operational approval, with a registered capital of RMB150m. This is the first bank-backed fund joint venture to be approved in eight years.   💡 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝟮.𝟬 The GBA Wealth Management Connect program has seen a rapid increase in participation since its expansion earlier this year. In March alone, there were over 24,000 new participants, with more than 40% coming from Hong Kong and Macao. Investors had remitted RMB16bn by the end of March, although deposits remain the most popular allocation target.   💡 𝗟𝗶𝗳𝗲 𝗝𝗩 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗙𝗮𝗺𝗶𝗹𝘆 𝗢𝗳𝗳𝗶𝗰𝗲 𝗢𝗳𝗳𝗲𝗿𝗶𝗻𝗴 AEGON THTF Life launched its “Wisdom Winner” family office service. The offering with leverage the global investment experience of Aegon to provide wealth planning to high-net-worth individuals and their families, with insurance products at the core. The service will incorporate local and global tax and trust advisory, as well as healthcare and other assistance.   💡 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗝𝗩 𝗗𝗶𝘃𝗲𝗿𝗴𝗲𝗻𝗰𝗲 The combined AUM of the bank wealth management JVs that were operation for the whole of 2023 decreased by RMB25bn last year. The majority of this decrease came from Amundi BOC WM, while Schroders BOCOM WM also had declining AUM. Conversely, BlackRock CCB WM and Goldman Sachs ICBC WM were able to grow their AUM in the year.   💡 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 AMAC plans to increase the reporting requirements for private asset management products run by securities and futures firms. This includes continuous reporting of leverage levels and notification of deferred payments. Violations will be relayed to CSRC and may result in business restrictions.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

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LPL’s STAAC in the #WeeklyMarketCommentary maintains a neutral stance on equities tactically. Favoring bonds over stocks due to high inflation & potential Fed rate cuts. Overweight on domestic equities, Japan, growth style & energy. Modest tilt towards fixed income and communication services. Read more now: #investing. https://hubs.la/Q02sVj3k0

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Great news! HKEX has reached an agreement with Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) to expand the scope of eligible #ETFs under #StockConnect.   The eligibility criteria for ETFs for both Northbound and Southbound trading, including the assets under management requirement and the index weighting requirements, will be relaxed to add even more vibrancy to our mutual market access programme.   The three exchanges will work closely on the business and technical preparations for the expansion, which is expected to take approximately three months. This enhancement is part of several measures announced today by the China Securities Regulatory Commission to support the continued development of Hong Kong’s capital markets. Read more here: https://lnkd.in/gEnc9S7W   #10YearsOfConnect

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HKEX To Develop Orion Derivatives Platform, Providing Best-in-Class Trading, Clearing and Risk Management Solutions for Global Clients On April 18, Hong Kong Exchanges and Clearing Limited (HKEX) announced the development of the Orion Derivatives Platform (ODP), to help differentiate the Group’s derivatives offerings and elevate its competitiveness in the global derivatives marketplace. · HKEX is launching the development of a proprietary derivatives platform to address rapidly evolving client needs · New platform will give HKEX capability to offer near 24-hour derivatives trading, introduce new products and provide enhanced efficiency, elevating Group’s competitiveness as a global exchange · ODP platform development ongoing; system migration will be carried out in phases to ensure smooth transition; market rollout expected in 2028 HKEX Chief Executive Officer, Bonnie Y Chan, said: “Building future-ready technology platforms and operations is a key strategic priority for HKEX, as we help our markets and participants deliver long-term, sustainable growth and development. We are therefore pleased to announce plans to develop the ODP, representing our significant investment into the future of our markets. Derivatives are one of the fastest-growing segments of HKEX's diverse business, achieving record-breaking volumes in both 2023 and 2022. Developing an in-house platform that is adaptable, efficient, and scalable, would give us a unique competitive advantage in the global derivatives space. The launch of ODP will strengthen HKEX’s capability to support the needs of global investors, and cement Hong Kong’s leading position as Asia’s risk management centre and an international financial centre.” For the full content, please check this link 👇 https://lnkd.in/gjQ4qEAy

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MPF Ratings released April MPF performance survey by highlighting the ongoing rebound in Hong Kong and China equities while US equities produced MPF’s worst asset class loss in April just after members moved an unprecedented $9.2bn into the world’s largest share market. The MPF system generated a modest monthly loss of -0.24%. In absolute dollar terms, the investment loss is equivalent to -$2.85bn (or -$600 per MPF’s 4.75m members) however year-to-date investment gains continue to be positive at $25.7bn, or $5,400 per member. After factoring in contributions, total MPF assets end April at approximately $1.18tr (up $1.15bn from end of March and $43.5bn for year-to-date), equivalent to an average MPF account balance of $249,100 (up $240 from end of March and $9,200 for year-to-date). Find out more here: https://lnkd.in/gN-vnr3T #mpfratings #MPFRIntelligence #MPFRConsistentPerformers #MPFFastMover #MarketInsights #MPFMarketShare #MPFFundFlows #MPFNetReturns #MPFIndustry #pensionschemes #assetmanagement #investmentmanagement #mpf #investment #empf

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