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Today’s China Top Five: 💡 𝗠𝗮𝗿𝗸𝗲𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 | 𝗖𝗦𝗥𝗖 Wu Qing, Chairman of CSRC, spoke at the 10th-anniversary summit of the Hong Kong Stock Exchange's Connect program. Wu emphasized a commitment to market-oriented, law-based, and internationalized reforms, aiming to create a better environment for international investors in China. 💡 𝗨𝗹𝘁𝗿𝗮-𝗹𝗼𝗻𝗴 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝗶𝗲𝘀 | 𝗠𝗶𝗻𝗶𝘀𝘁𝗿𝘆 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 The Ministry of Finance completed the issuance of the latest tranche of 2024 ultra-long-term special treasury bonds on November 15.  Total issuance for 2024 has now reached RMB1tr, across 20-year, 30-year and 50-year bonds. 💡 𝗖𝗼𝘀𝘁 𝗖𝘂𝘁𝘁𝗶𝗻𝗴 | 𝗙𝘂𝗻𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗿𝘀 Smaller fund management companies have been closing their branch offices, primarily to reduce operating costs. Many firms continue to retain some local staff to maintain client relationships even after closing physical offices. 💡 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗮𝗽 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 | 𝗖𝗦𝗥𝗖  CSRC issued new guidelines emphasizing the importance of enhancing a company's investment value and shareholder returns. Companies with prolonged low market value (below book value) must develop and disclose clear value enhancement plans, reviewed annually by the board. 💡 𝗠𝘂𝘁𝘂𝗮𝗹 𝗙𝘂𝗻𝗱𝘀 | 𝗤𝘂𝗮𝗻𝘁 Despite the market rebound since late September, quantitative mutual funds have been unable to post positive returns, with the majority still bearing YTD losses. The scale of such products has declined in recent years on the back of persistent poor performance.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five:   💡 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 | 𝗠𝗶𝘇𝘂𝗵𝗼 CSRC provided feedback on the securities company establishment application from Mizuho. The feedback focused on the scope of business, planning, and the qualifications of the proposed chairman and general manager. 💡 𝗡𝗲𝘄 𝗟𝗮𝘂𝗻𝗰𝗵 | 𝗠&𝗚 M&G Investments launched the M&G China Fund which uses a bottom-up stock-picking approach with a strong emphasis on risk pricing. The fund will be managed by David Perrett, with support from a Singapore-based team, and is benchmarked against the MSCI China with 100% China A Share Index. 💡 𝗦𝘁𝗼𝗰𝗸 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 | 𝗦𝗙𝗖, 𝗖𝗦𝗥𝗖 SFC issued guidelines allowing intermediaries to distribute research reports in Hong Kong on Mainland ETFs eligible for trading via the Stock Connect. This is a reciprocal action after CSRC indicated that research reports on Stock Connect-included Hong Kong-listed ETFs can be distributed onshore. 💡 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 | 𝗦𝗮𝗹𝗲𝘀 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 Financial product distribution revenues declined in the first half of 2024 for both banks and brokerages. Many institutions saw double-digit falls in distribution income. For instance, CITIC Securities Company Limited’ income dropped by 11%, and other major brokerages like Huatai Securities Co., Ltd. and GF Securities experienced even larger declines. 💡 𝗛𝗮𝗹𝗳-𝘆𝗲𝗮𝗿 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 | 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 Bank wealth management companies saw significant growth, with listed banks' wealth management subsidiaries achieving a 14% YoY increase in net profits. The subsidiaries of China Merchants Bank, China Industrial Bank and Industrial and Commercial Bank of China maintained the top three positions in terms of AUM.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗜𝗻𝗱𝗲𝘅 | 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 Several FMCs, including E Fund Management Co.,LTD., GF Fund Management Co., Ltd., Zhong Ou Asset Management and BlackRock (China) have received CSRC approval to launch CSI A500 Enhanced Index Funds. This is the second batch following the initial four funds – one of which from Huashang raised RMB2bn at the beginning of November. 💡 𝗘𝗧𝗙𝘀 | 𝗔𝗳𝘁𝗲𝗿-𝗵𝗼𝘂𝗿𝘀 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 The introduction of after-hours fixed-price trading is seen as a crucial step to enhance the ETF market. It allows investors to buy or sell at the closing price after the regular trading session. Including ETFs in after-hours trading could overcome regulatory challenges where advisory accounts cannot manage both bank and securities accounts simultaneously. 💡 𝗛𝗼𝗻𝗴 𝗞𝗼𝗻𝗴 𝗦𝘂𝗺𝗺𝗶𝘁 | 𝗠𝗮𝗿𝗸𝗲𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 At the Global Leaders’ Investment Summit in Hong Kong, top Chinese policymakers, including Vice Premier He Lifeng, emphasized China's commitment to opening up to foreign investors and deepening market access via Hong Kong. Key financial regulators, including Li Yunze (NFRA), Wu Qing (CSRC), and Zhu Hexin (PBoC), reiterated their commitment to ongoing financial reforms. 💡 𝗦𝘁𝗼𝗰𝗸 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 | 𝗙𝘂𝘁𝘂𝗿𝗲 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁𝘀  At a forum marking the 10th anniversary of the Stock Connect program, Hong Kong officials and financial regulators discussed upcoming enhancements, such as introducing block trades, including REITs in the Stock Connect, and adding RMB stock trading counters in the Southbound channel. 💡 𝗟𝗼𝗰𝗮𝗹 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗗𝗲𝗯𝘁 | 𝗦𝗽𝗲𝗰𝗶𝗮𝗹 𝗕𝗼𝗻𝗱𝘀 After approval on November 8, the Ministry of Finance allocated a RMB6tr debt limit to local governments to manage debt issuance and allocate funds effectively. By October 2024, local governments had issued RMB3.9tr in special bonds. The 2024 special bond program supported over 30,000 projects.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five:   💡 𝗝𝗣 𝗠𝗼𝗿𝗴𝗮𝗻 𝗥𝗼𝗹𝗹𝘀 𝗢𝘂𝘁 𝗖𝗦𝗜 𝗔𝟱𝟬 𝗘𝗧𝗙 The product started fundraising on February 19, along with nine other CSI A50 trackers, each with a cap of RMB2bn. Alongside the Shanghai Stock Exchange and China Merchants Securities Co., Ltd., J.P. Morgan Asset Management (China) also held a media event to promote its new fund offering. 💡 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗿𝘀 𝗧𝘂𝗿𝗻 𝘁𝗼 𝗠𝘂𝗹𝘁𝗶-𝗔𝘀𝘀𝗲𝘁 A total of 19 new multi-asset bank wealth management products were launched in February, prior to the Lunar New Year break; this is on top of 63 such products in January. The growing number of launches, from the likes of China Merchants Bank, Bank of Communications Co.,Ltd. and Agricultural Bank of China, reflect near-term optimism towards the equity market. 💡 𝗡𝗲𝘄 𝗘𝗦𝗚 𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗚𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 Shanghai, Shenzhen, and Beijing stock exchanges jointly issued ESG reporting guidelines on February 8th. These guidelines aim to standardize ESG reporting for listed companies, with mandatory disclosure requirements for selected sample companies and those dual-listed domestically and abroad. Listed companies must publish their 2025 Sustainable Development Reports by April 30, 2026. 💡 𝗙𝗶𝘃𝗲-𝗬𝗲𝗮𝗿 𝗟𝗣𝗥 𝗖𝘂𝘁  The five-year rate was reduced by 25 basis points to 3.95%. The reduction is expected to positively impact long-term corporate and residential borrowing and aligns with the government's efforts to manage debt servicing costs during local government debt restructuring. 💡 𝗤𝘂𝗮𝗻𝘁 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗙𝘂𝗻𝗱𝘀 𝗦𝘁𝗿𝘂𝗴𝗴𝗹𝗲  All 17 quant private funds with over RMB10bn that are benchmarked against the CSI 500 lagged the index. Of particular concern is the substantial losses incurred by institutions like Qilin Investment and Huanfang Quantitative, with some reporting losses exceeding 18%, and a handful already surpassing the -20% mark for year-to-date returns. #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs  #china #financialnews

Today’s China Top Five:   💡 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗙𝗶𝗿𝗺𝘀 𝗛𝗼𝗹𝗱 𝗦𝗵𝗮𝗻𝗴𝗵𝗮𝗶 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 𝗖𝗲𝗿𝗲𝗺𝗼𝗻𝘆 The AllianceBernstein (China) fund management company, Amundi Technology (Shanghai) and KKR (Shanghai) jointly held an event to launch new onshore ventures. The Vice Mayor of Shanghai emphasized the city's commitment to providing a conducive environment for investment, highlighting its robust industry clusters, top-tier talent pool, and international business-friendly atmosphere. 💡 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗖𝗵𝗮𝗿𝘁𝗲𝗿𝗲𝗱 𝗛𝗮𝗹𝘁𝘀 𝗤𝗗𝗜𝗜 𝗦𝗮𝗹𝗲𝘀 The bank posted a notice on its Chinese website stating that subscriptions for global products sold through Standard Chartered (China) would be halted indefinitely. Quota shortage is a probable cause, with the bank’s USD2.8bn allotment not topped up since 2021. 💡 𝗙𝗶𝗱𝗲𝗹𝗶𝘁𝘆 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗲𝘀 𝗕𝗲𝗶𝗷𝗶𝗻𝗴 𝗕𝗿𝗮𝗻𝗰𝗵 This is the third location for the Fidelity International onshore fund management business, after its headquarters in Shanghai and a branch in Dalian. The firm has already obtained the necessary licensing and has appointed Li Chengcheng as head of the new branch. 💡 𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝘁𝗼 𝗕𝘂𝘆 𝗥𝗠𝗕 𝗕𝗼𝗻𝗱𝘀  The latest data from the China Central Depository & Clearing Co. reveals a significant rise to RMB3.87tr by the end of January. This RMB203bn increase marks the fifth consecutive month of growth. The global rate and foreign exchange environment, as well as continued market opening efforts, are likely contributing factors. 💡 𝗡𝗲𝘄 𝗛𝗲𝗮𝗱 𝗮𝘁 𝗖𝗜𝗖 China Investment Corporation appointed Liu Haoling as Vice Chairman, CEO, and Chief Investment Officer, replacing the retiring Ju Weimin. Liu previously served in various positions within CIC since joining in 2008, including Chief Risk Officer, and member of the Executive Committee.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs  #china #financialnews

Today’s China Top Five:   💡 𝗕𝗡𝗣 𝗣𝗮𝗿𝗶𝗯𝗮𝘀 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 BNP Paribas has been approved to establish a wholly-owned securities company onshore. The entity will be based in Shanghai and has a registered capital of RMB1.1bn. This approval comes three years after the application was first received by CSRC and two years after its initial feedback from the regulator.   💡 𝗖𝗦𝗜 𝗣𝗹𝗮𝗻𝘀 𝗡𝗲𝘅𝘁 𝗠𝗮𝗷𝗼𝗿 𝗜𝗻𝗱𝗲𝘅 Shortly after the launch of the CSI A50 index, China Securities Index Co., Ltd. is preparing an A500 index. The index will be comprised of the largest 500 stocks by market cap, while also maintaining balanced sector exposure. Leading fund managers have already expressed an interest in launching ETFs tracking the upcoming index.   💡 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗔𝗨𝗠 𝗥𝗲𝗰𝗼𝘃𝗲𝗿𝘆 Estimates suggest bank wealth management AUM has rebounded by RMB1.8tr in the first two weeks of April, following quarter-end redemptions in March. CITIC Securities Company Limited project that the industry will hit RMB30tr in AUM by the end of this year.   💡 𝗕𝗪𝗠𝗣 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 In March, the lower limit of some bank wealth hurdle rates fell below 3%. There has been a continuous downtrend in hurdle rates throughout 2023 and into this year. As of March, the average for open-ended funds is 3.11%, while closed-ended funds’ average was slightly higher at 3.22%.   💡 𝗕𝗮𝗻𝗸𝘀 𝗧𝘂𝗿𝗻 𝘁𝗼 𝗜𝗻𝗱𝗲𝘅 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 Bank wealth management companies now offer 23 index products – almost half of which have been launched in the past year. In terms of competition, the wealth management unit of Huaxia Bank, China has the most products at 11, followed by Postal Savings Bank of China Co., Ltd. (8) and Bank of China (4). These products are being deployed to circumvent equity research deficiencies.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

"Regulators have approved the first batch of 14 Chinese brokerages for participation in the Greater Bay Area Wealth Management Connect scheme after widening eligibility criteria earlier this year. The cross-border investment programme launched in 2021 allows distribution of eligible financial products, including locally domiciled mutual funds, between China's Guangdong province, Hong Kong and Macau. The China Securities Regulatory Commission announced the names of the approved mainland brokerages on Friday, at the same time that the Hong Kong's Securities and Futures Commission confirmed the participation of the local subsidiaries of the same brokerages. The 14 brokers include China Galaxy Securities, China Industrial Securities, China International Capital Corporation Securities, China Merchants Securities, China PA Securities, China Securities, Citic Securities, GF Securities, Guosen Securities, Guotai Junan Securities, Huatai Financial Holdings, SDICS International Securities, Shenwan Hongyuan Securities and Zhongtai Securities. Hong Kong's SFC said in an announcement that these mainland brokerages and their licensed Hong Kong subsidiary corporations would work in partnership to offer cross-boundary investment services to investors in the Greater Bay Area." #ignitesasia #GBAwealthconnect

Today’s China Top Five: 💡 𝗥𝗲𝗹𝗲𝗻𝗱𝗶𝗻𝗴 𝗙𝗮𝗰𝗶𝗹𝗶𝘁𝘆 | 𝗟𝗶𝘀𝘁𝗲𝗱 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀  PBoC launched the relending program on Friday, providing financing for listed companies and their shareholders to buy back stock. More than 20 listed companies have since filed exchange announcements disclosing plans to utilize the facility which has an initial cap of RMB300bn. 💡 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗿𝗲𝗲𝘁 𝗙𝗼𝗿𝘂𝗺 | 𝗣𝗕𝗼𝗖 At the 2024 Financial Street Forum, PBoC Governor Pan Gongsheng emphasized the need for dynamic balance in promoting high-quality and sustainable economic growth. Pan stressed that macroeconomic policy should shift from a heavy reliance on investment to a balanced focus on both consumption and investment. 💡 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗜𝗻𝗱𝗲𝘅 | 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 After the first batch of ETFs tracking the CSI A500 index were launched, and several new product applications were lodged, the first private fund product linked to the index has been established. The CSI A500 enhanced index private fund has been issued by Pinestone Asset. 💡 𝗤𝘂𝗮𝗻𝘁 𝗣𝗙𝗠𝘀 | 𝗛𝗶𝗴𝗵-𝗙𝗹𝘆𝗲𝗿 One of the largest domestic private fund managers, High-Flyer has informed clients that it intends to wind down its market neutral strategies. It will instead focus solely on long-only quantitative strategies, several of which follow an enhanced index approach. 💡 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁 | 𝗣𝗕𝗼𝗖 The one-year and five-year LPR were both cut by 25bps. For the one-year, it was lowered from 3.35% to 3.10%; the five-year went from 3.85% to 3.60%. The previous cut to the LPR came in July.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

https://lnkd.in/gBe2G5Yg Published on Apr. 22. The China Securities Regulatory Commission (#CSRC) has released a consultation concerning programme trading management as part of efforts to tackle abnormal market orders and increase stability and fairness. The aim is also to help revive investor confidence in an ailing stock market. The proposal follows the State Council's recent issuance of guidelines on promoting the development of high-quality capital markets, strengthening regulation and forestalling risks, which outlined a "strategic vision to develop a modernised, adaptive, competitive and inclusive capital market by 2035," said Yin Ge, partner at #HanKunLawOffices in Shanghai. Ge advises cross-border investment management in #China, representing global asset managers who are trying to establish operations in the country. "This consultation paper [is] the first comprehensive regulation on programme trading [that has been] issued at the central financial regulator level, which intends to address a series of critical issues relating to programme trading in China's securities markets," Ge said. ...... The trading consultation is part of a recent slew of new measures rolled out by the authorities. They include strengthening the #supervision of company #listings and #delistings in a broader move to revive market #confidence and protect investors' interests amid a variety of risks facing Chinese financial markets, including insider trading, fraudulent listing application procedures, ailing property, debt woes and cooling foreign investment. #China #quantfunds #capitalmarkets #regulatoryoverhaul #hedgefunds #programtrading #stockmarket #marketcrash #abnormalmarketbehaviours #regulatorycompliance Thomson Reuters

📢 China’s Markets Watchdog Aims to Enhance Funds Recognition Scheme with Hong Kong to Boost Flows 📈 Mainland China’s top securities watchdog, the China Securities Regulatory Commission (CSRC), is taking significant steps to strengthen cross-border trading and capital flow with Hong Kong. In their latest move, they have proposed amendments to the funds recognition scheme with Hong Kong, aimed at providing investors with more choices and flexibility. 🔍 On Friday, the CSRC published a consultation paper on enhancing the mainland-Hong Kong mutual recognition of funds (MRF) scheme. This initiative is part of a broader strategy unveiled on April 19 to fortify ties between the two regions and bolster Hong Kong’s status as a global financial hub. Public consultation on these proposed amendments is open until July 14. 💬 Julia Leung, CEO of Hong Kong’s Securities and Futures Commission (SFC), emphasized the potential of these changes: “The proposed amendments address a long-standing wish of asset managers in Hong Kong for a more flexible scheme, offering more diversified product choices to mainland investors and injecting new impetus into the MRF scheme’s development.” 🤝 The SFC is committed to collaborating closely with the CSRC to formulate and implement these measures, further promoting the coordinated development of mainland China and Hong Kong’s capital markets. 🔗 As part of these efforts, the CSRC is also relaxing the eligibility criteria for exchange-traded fund (ETF) products in the Stock Connect mechanism, effective July 22. This will enhance the investment options for investors in both regions. 🌐 The Stock Connect scheme, launched in 2014, has been instrumental in linking the Shanghai, Shenzhen, and Hong Kong exchanges, facilitating cross-border investments. 🌟 In a groundbreaking move, the CSRC approved mainland ETFs to track top firms in Saudi Arabia, expanding investment opportunities for mainland investors. #marvelsuccessworldwidelimited #property #propertyinvestment #realestate #UKPropertyDeals #AsianInvestorMarket #UKPropertyDeals #AsianInvestors #InvestmentOpportunities #BuildingTrust #RealEstate #GuideBook #SuccessStories