iShares MSCI AC F Est Ex-Jap Sml Cp GBX Board http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.10233879
Asian markets have shown some gains today based on China PMI news; the first Reuters article here look at the latest Chinese headline manufacturing figures; the second piece considers the implications.

Valuta


China HSBC November final manufacturing PMI hits 13-month high of 50.5

Reuters – 8 hrs ago

BEIJING (Reuters) - The pace of activity in China's vast manufacturing sector quickened for the first time in thirteen months in November, a survey of private factory managers found, adding to evidence that the Chinese economy is reviving after seven quarters of slowing growth.

The final reading for the HSBC Purchasing Managers' Survey (PMI) rose to 50.5 in November from 49.5 in October, in line with a preliminary survey published late last month. It was the first time since October 2011 that the survey crossed above 50 points, the line that demarcates accelerating from slowing growth.

(Reporting By Lucy Hornby)

(100 words)
http://news.yahoo.com/china-hsbc-november-final-manufacturing-pmi-hits-13-015626089--business.html

~

China PMI survey shows growth reviving, but uneven

By Lucy Hornby
BEIJING | Sun Dec 2, 2012 8:57pm GMT

(Editing by Ian Geoghegan)

(800 words + graphic)
http://uk.reuters.com/article/2012/12/02/uk-china-pmi-idUKBRE8B10E820121202
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=10233879&action=detail Mon, 03 Dec 2012 11:33:00 GMT Valuta tag:iii.co.uk,2003:tst.10027512 The world economy is at its most fragile since the 2008-09 financial crisis, with recovery impeded by stalling global trade growth and a bitter territorial row between China and Japan, OECD Secretary General Angel Gurria has told Reuters, as this article from the South China Morning Post explains.

Valuta



OECD boss warns global economy in fragile state

Nick Edwards in Beijing
Thursday, 20 September, 2012, 3:30pm


(800 words + graphic + comments)
http://www.scmp.com/business/economy/article/1041456/oecd-boss-warns-global-economy-fragile-state

By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=10027512&action=detail Thu, 20 Sep 2012 11:14:00 GMT Valuta tag:iii.co.uk,2003:tst.9966261 This long Bloomberg article takes a wide-ranging look at China’s latest slowdown and its implications.

China accounts for 17.37% and Hong Kong 11.68% of ISFE holdings (at 30 August 2012).

Valuta


China Deterioration Raises Risk of Wen Missing Target: Economy

By Bloomberg News - Sep 3, 2012 8:28 AM GMT

China’s economy is showing mounting signs of deterioration from manufacturers to banks, raising the risk that outgoing Premier Wen Jiabao will miss his growth target for the first time since taking office in 2003.

(1,500 words + graphic) {Reading time: 6mins}
http://www.bloomberg.com/news/2012-09-02/china-economy-s-deterioration-raises-risk-of-wen-missing-target.html

By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9966261&action=detail Mon, 03 Sep 2012 12:30:00 GMT Valuta tag:iii.co.uk,2003:tst.9885299 Here from Citywire is how one fund manager sees the South East Asia region.

Whether we are likely to have his expected 'slow and steady recovery' is I think moot.

I have no view on the fund cited or on Citywire Selection.

Valuta



Fidelity's Liu tips quality stocks to outperform in Asia despite volatility

Allan Liu, manager of the Fidelity South East Asia fund, is expecting a 'slow and steady' global economic recovery.

by Matthew Goodburn on Aug 02, 2012 at 11:03


(900 words + graphic + comments)
http://www.citywire.co.uk/money/fidelitys-liu-tips-quality-stocks-to-outperform-in-asia-despite-volatility/a608652?ref=citywire-money-latest-news-list


By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9885299&action=detail Thu, 02 Aug 2012 13:33:00 GMT Valuta tag:iii.co.uk,2003:tst.9870840
This MarketWatch article by Sarah Turner examines why (particularly the large) Asian equity markets have done poorly over the past few months, and what investors might look for in any market turnaround.

Valuta


Asia Stocks to Watch

July 26, 2012, 8:39 p.m. EDT

Large Asia markets unloved, but for how long?

HONG KONG (MarketWatch)

Sarah Turner is MarketWatch's bureau chief in Sydney.

(1,200 words + graphic + comments) {Reading time: 5 mins}
http://www.marketwatch.com/story/large-asia-markets-unloved-but-for-how-long-2012-07-26 By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9870840&action=detail Fri, 27 Jul 2012 14:08:00 GMT Valuta tag:iii.co.uk,2003:tst.9856299
British banker and author David Marsh, writing in MarketWatch, pulls no punches in characterising the growth of Asia and stasis in the West – now even in financial services.

Valuta


Marsh on Monday July 23, 2012, 12:01 a.m. EDT

The rise and rise of Asian financial centers

Commentary: As the West bogs down, opportunities go East

By David Marsh, MarketWatch

SINGAPORE (MarketWatch) — A lot has been said and written about the power shift between East and West engendered by worldwide economic changes of the past 10 years, especially the 2007-08 trans-Atlantic financial crisis. But as British newspaper headline writers like to say when a transition of gigantic proportions is upon us: “You ain’t seen nothin’ yet.”.....


David Marsh is co-chairman of the Official Monetary and Financial Institutions Forum.

(900 words + graphics + comments)
http://www.marketwatch.com/story/the-rise-and-rise-of-asian-financial-centers-2012-07-23?link=home_carousel
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9856299&action=detail Mon, 23 Jul 2012 14:22:00 GMT Valuta tag:iii.co.uk,2003:tst.9846048

Bill Maldonado of HSBC gives an interesting assessment of Asian stocks in this seven-minute video interview. He couples his assessment of stocks’ cheapness with an assertion that Asian currencies are undervalued on a Purchasing Power Parity basis, hence giving further upside potential.

Valuta


Asian Stocks Seen as Cheap, Currencies Undervalued

July 19 (Bloomberg) -- Bill Maldonado, chief investment officer for Asia Pacific at HSBC Global Asset Management, talks about investment opportunities in Asian stocks and currencies. He speaks with Maryam Nemazee on Bloomberg Television's "The Pulse." (Source: Bloomberg)

Video (6:51 mins)
http://www.bloomberg.com/video/asian-stocks-seen-as-cheap-currencies-undervalued-FZeXsmRaTZSSyKpImGbYFg.html

~

PPP

Purchasing Power Parity – exchange rate designed to equalise standard of living differences between countries, and is therefore generally accepted as an appropriate conversion method for non-tradable goods and services
http://www.comcom.govt.nz/jargon-buster#p
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9846048&action=detail Thu, 19 Jul 2012 14:54:00 GMT Valuta tag:iii.co.uk,2003:tst.9825549
China’s growth rate slowed to 7.6 percent year-on-year in Q2, in line with expectations, as The Guardian reports.

Valuta


China's economic growth slows to 7.6%

Second-quarter GDP growth in world's second largest economy falls to lowest rate since depths of financial crisis in 2009

• Tania Branigan in Beijing
• guardian.co.uk, Friday 13 July 2012 08.36 BST


(600 words + graphic)
http://www.guardian.co.uk/business/2012/jul/13/china-economic-growth-slows-gdp
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9825549&action=detail Fri, 13 Jul 2012 10:30:00 GMT Valuta tag:iii.co.uk,2003:tst.9816030
This clarification of a shift in China’s economic policy is from MarketWatch.

Valuta


Market Pulse
July 10, 2012, 7:45 p.m. EDT

China premier: Stabilizing growth now top priority

By Michael Kitchen


(150 words)
http://www.marketwatch.com/story/china-premier-stabilizing-growth-now-top-priority-2012-07-10

By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9816030&action=detail Wed, 11 Jul 2012 09:15:00 GMT Valuta tag:iii.co.uk,2003:tst.9780390
South Korea plans to boost public spending by more than $7bn this year to support the flagging economy as it faces strong headwinds from Europe’s debt crisis and China’s economic slowdown, the FT reports.

South Korea accounts for 19.37% of ISFE holdings (at 27 June 2012).

Valuta


June 28, 2012 1:43 pm

South Korea unveils $7bn spending boost

By Song Jung-a in Seoul


Copyright The Financial Times Limited 2012.

(400 words)
http://www.ft.com/cms/s/0/d91e02ea-c11c-11e1-853f-00144feabdc0.html#ixzz1z8ZPAQ00
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9780390&action=detail Fri, 29 Jun 2012 10:03:00 GMT Valuta tag:iii.co.uk,2003:tst.9761040

BlackRock has announced tighter limits on securities lending by its iShares exchange traded funds business along with new plans to compensate investors if a securities lending transaction goes wrong.

This Citywire article explains.

Below too is an FT article which adds some background. The piece also notes that the European Securities and Markets Authority (Esma) is shortly due to publish new guidelines for ETF providers and other Ucits managers that are expected to require improved transparency on securities lending practices.

Finally, below for info is a link to some relevant material direct from iShares.


Valuta



BlackRock protects iShares ETFs from stock lending

BlackRock, the investment group that owns iShares, has taken steps to remove the risk from stock lending in its exchange traded funds (ETFs).

by Emma Dunkley on Jun 22, 2012 at 04:57


BlackRock has said it will indemnify its iShares ETF range from the risk of a borrower default. This means that if a company borrows stock from an iShares ETF and then goes bust and is unable to return the stock, BlackRock will compensate the fund and ensure there is no financial loss for investors.

Secondly, BlackRock, which bought iShares from Barclays two years ago, has set a 50% limit on the amount of shares one of its ETFs can lend to a third party.

Last year it emerged that the iShares FTSE 250 ETF – which tracks shares in the FTSE 250 index - had lent out as much as 95% of its investments to third parties. Investor concern was heightened by the revelation that the fund had accepted Italian and Japanese shares as collateral in case the stock was not returned.

Stock lending is controversial because the counterparty may be shorting the stock, ie, taking a bet that the price will fall. The presence of short trades can put downward pressure on a share price, which would disadvantage the original ETF investor.

BlackRock defends stock lending, saying 60% of the revenue it generates goes back to the fund to reduce charges. In the case of the iShares FTSE 250 it lowered the ETF’s annual management charge by nearly 0.15%.

On average it says iShares ETFs lend 20% of the securities they own, well within its new limit.
Joe Linhares, head of iShares EMEA, said ‘The vast majority of our funds are not impacted and will not forego securities lending revenue as a result of this change.’

However, Linhares said the company had to respond after investors expressed concern over the counterparty risk and the lack of transparency in its stock lending.

He said: ‘We listened to our iShares clients’ feedback and whilst clients appreciate the additional returns received from securities lending and are comfortable with our risk management process, clients said they would be more comfortable with limiting lending to 50% of a fund.’

On the decision to bear any losses that a fund incurs from stock lending, Linhares said: ‘Whilst we continue to believe that the strong risk management framework surrounding our securities lending programme delivers the protection clients need, we formalise the confidence we have in our risk management capabilities and explicitly provide an indemnity against borrower default,’ said Linhares.

He added that the cost of the indemnity would be paid by BlackRock and not passed on to iShares investors.



Exchange traded funds have become popular as a low-cost, flexible way of accessing stock markets. However, issues such as stock lending have caused concern that investors may not understand all the underlying risks. For an introduction to ETFs watch this Lolly Investor Programme video.


(500 words + graphic + comments)
http://www.citywire.co.uk/money/blackrock-protects-ishares-etfs-from-stock-lending/a597719?ref=citywire-money-latest-news-list

~

ETFs

June 22, 2012 4:58 pm

BlackRock tightens securities lending standards

By Chris Flood

Copyright The Financial Times Limited 2012.

(700 word By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9761040&action=detail Fri, 22 Jun 2012 17:26:00 GMT Valuta tag:iii.co.uk,2003:tst.9757144 China’s manufacturing sector contracted for an eighth consecutive month in June, according to the HSBC flash purchasing managers’ index, as export orders suffered their fastest contraction since March 2009.

This Wall Street Journal article explains the results.

Qu Hongbin of HSBC (who is cited in the WSJ article), opines in this Bloomberg interview that China's easing over the past six months has not been enough, but he believes that further action can be taken. He thinks there will be further easing and we will see Chinese growth pick up toward end of third quarter (September).

China accounts for 18.5 percent and Hong Kong 11.6 pct of ISFE holdings (at 19 June 2012).

Valuta



BUSINESS

Updated June 21, 2012, 2:05 a.m. ET

China PMI Falls, Points To Need for Stimulus

By WILLIAM KAZER



(500 words + graphic)
http://online.wsj.com/article/SB10001424052702304898704577479461349552418.html?mod=googlenews_wsj

~

HSBC's Qu on China Economy, Central Bank Policy

June 21 (Bloomberg) -- Qu Hongbin, co-head of Asian economic research at HSBC Holdings PLC, talks about China's economy and central bank monetary policy. China’s manufacturing may shrink for an eighth month in June, matching the streak during the global financial crisis in a signal the government’s stimulus has yet to reverse the economy’s slowdown. The 48.1 preliminary reading for a purchasing managers’ index released by HSBC and Markit Economics today compares with a final 48.4 for May.

Qu speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Video (5:05 mins)
http://www.bloomberg.com/video/95037729-china-may-ease-monetary-policy-further-hsbc- By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9757144&action=detail Thu, 21 Jun 2012 18:23:00 GMT Valuta tag:iii.co.uk,2003:tst.9752959 The number of millionaires in Asia has overtaken North America for the first time in a sign of wealth shifting across the globe due to the economic downturn, according to a new report.
This Guardian article highlights the key points.

Below that is a link to newspaper’s source: the World Wealth Report 2012 from Capgemini and RBC.

Valuta


World wealth report: Asia overtakes America in millionaire stakes

But the overall level of wealth in North America is still highest in world, with its multimillionaires controlling $11.4tn

• Simon Neville
• guardian.co.uk, Tuesday 19 June 2012 18.59 BST


(500 words + graphic + comments)
http://www.guardian.co.uk/business/2012/jun/19/world-wealth-report-asia-america-millionaires

~

World Wealth Report 2012

from Capgemini and RBC Wealth Management

The industry's leading benchmark for High Net Worth market information

(250 words + graphic + links)
http://www.capgemini.com/services-and-solutions/by-industry/financial-services/solutions/wealth/w By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9752959&action=detail Wed, 20 Jun 2012 15:37:00 GMT Valuta tag:iii.co.uk,2003:tst.9702088 The latest surveys (both official and HSBC) of China’s manufacturing activity show China suffering its sharpest deterioration since mid-2010, sparking analysts’ calls for Beijing to take action.

Stephen Green of Standard Chartered Bank, in this Bloomberg video interview, gives a forthright account of the likely way forward, but declines to be drawn on numbers, stressing that there is “quite a lot of fog around”.

Valuta


China Economy `Troughing' Now, Green Says

June 1 (Bloomberg) -- Stephen Green, head of Greater China research at Standard Chartered Bank Plc in Hong Kong, talks about China's economic outlook and monetary policy. Green also discusses Europe's debt crisis. He speaks with Susan Li, Zeb Eckert, Mia Saini and Angie Lau on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

Video (8:36 mins)
http://www.bloomberg.com/video/93769351-china-economy-troughing-now-green-says.html

By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9702088&action=detail Fri, 01 Jun 2012 12:57:00 GMT Valuta tag:iii.co.uk,2003:tst.9637494

Ewan Cameron discusses prospects for China in this Financial Times Fund Management (FTfm) video interview.

The grandly-titled Chief Investment Strategist of the BlackRock Investment Institute seems quietly confident about the economy’s prospects, but sees China’s domestic market as a bit of a casino.

BlackRock is of course the parent of iShares. China accounts for 26.37% of IFFF holdings and Hong Kong 12.56% pct (as at 10 May 2012).


Valuta


Why China remains on track

Ewen Cameron Watt of BlackRock thinks scaremongering about China property overdone

FTFM from MARKETS

Why China remains on track

May 8 2012 Ewen Cameron Watt, chief investment strategist of BlackRock Investment Institute, thinks scaremongering about China's property bubble has been overdone. Long term trends towards growing a domestic consumer economy are on track and understanding where China is on its path to greater development will guide investment decisions globally, including in commodities and fixed income. (4m 8sec)

Video (4:08 mins)
~

Ewen Cameron Watt

Managing Director and Portfolio Manager

http://www.blackrockinternational.com/EmergingMarketsConference/Speakers/index.htm

~

About BlackRock

(600 words)
http://uk.ishares.com/en/rc/about/about-blackrock
By Valuta ]]> http://www.iii.co.uk/investment/detail?code=cotn:ISFE.L&display=discussion&id=9637494&action=detail Mon, 14 May 2012 11:19:00 GMT Valuta