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China is merging Guotai Junan Securities & Haitong Securities to create China largest brokerage with $225 billion assets, subject to approval.  China largest brokerage is currently Citic Securities.  Read - https://lnkd.in/gemNFWik follow Caproasia | Driving the future of Asia China is merging Guotai Junan Securities & Haitong Securities to create China largest brokerage with $225 billion assets, subject to approval.  China largest brokerage is currently Citic Securities.  

I will explore a new business idea of Dimsum Commercial Papers (DCP) in this fireside chat with my distinguished FinanceAsia host this Wednesday morning. My fellow debt capital market experts, please come join me to make this market happen — Here in #HK!

The capital from foreign investors via Hong Kong Connect Program to A-share market had its largest single day inflow on 26 Apr 2024 (RMB 22 billion) since the program launched in Nov 2014. The YTD total net inflow rise to RMB 72 billion, combined with the recent uptrend of US and HK listed Chinese companies, indicating the sentiment recovery towards China assets.  #investing #ChinaAshares #ChinaCapitalInflow #ChinaForeignInvestors

China instructs brokerages & banks to suspend buying of Dim Sum Bonds (LGFV) via Bond Connect, which allows Mainland China & global investors to trade bonds. Local Government Financing Vehicles (LGFVs) are China local government state-owned investment companies.  Read - https://lnkd.in/gxqV-gP8 follow Caproasia | Driving the future of Asia China has been reported to have instructed brokerages & banks to suspend buying of Dim Sum Bonds (LGFV) via Bond Connect, which allows Mainland China & global investors to trade bonds. Local Government Financing Vehicles (LGFVs) are China local government state-owned investment companies.  

China instructs brokerages & banks to suspend buying of Dim Sum Bonds (LGFV) via Bond Connect, which allows Mainland China & global investors to trade bonds. Local Government Financing Vehicles (LGFVs) are China local government state-owned investment companies.  Read - https://lnkd.in/gwzTRKVq follow Caproasia | Driving the future of Asia China has been reported to have instructed brokerages & banks to suspend buying of Dim Sum Bonds (LGFV) via Bond Connect, which allows Mainland China & global investors to trade bonds. Local Government Financing Vehicles (LGFVs) are China local government state-owned investment companies.  

Today’s China Top Five: 💡 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 | 𝗗𝗕𝗦 DBS Bank is raising its stake in its China securities joint venture from 51% to 91%, pending regulatory approval. Four local shareholders auctioned a combined 40% for RMB408m on the Shanghai United Assets and Equity Exchange in July. 💡 𝗢𝘃𝗲𝗿𝘀𝗲𝗮𝘀 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 | 𝗥𝗼𝗻𝗴𝘁𝗼𝗻𝗴 RONGTONG INTERNATIONAL LIMITED, a subsidiary of Rongtong Fund, launched its first Cayman Islands-listed fund with a USD200m initial investment. The fund focuses on USD-denominated interest rate bonds, including Chinese government offshore bonds. 💡 𝗘𝗧𝗙𝘀 | 𝗦𝗢𝗘 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 @China Chengtong announced that its subsidiary, Chengyang Investment, increased holdings in several ETFs related to central state-owned enterprises (SOEs). This action is seen as a signal of confidence in the value of these companies and aims to stabilize their market value. 💡 𝗚𝗹𝗼𝗯𝗮𝗹 𝗦𝗪𝗙𝘀 | 𝗔𝗗𝗜𝗔 Abu Dhabi Investment Authority (ADIA) participated in a deal to acquire the shopping mall management unit of Dalian Wanda for USD8.3bn. Mubadala also participated in the deal, in another sign that capital flows between the Middle East and China are increasing. 💡 𝗕𝗮𝗻𝗸𝘀 | 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗜𝗻𝗷𝗲𝗰𝘁𝗶𝗼𝗻 There are plans being developed to issue RMB1tr special sovereign bonds in order to inject fresh capital into the large SOE banks. NFRA earlier in the week discussed boosting core tier 1 capital of the “Big Six”, without providing additional details or timeframe.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲 𝗗𝗲𝗽𝗮𝗿𝘁𝘂𝗿𝗲 | 𝗔𝗹𝗹𝗶𝗮𝗻𝘇 𝗚𝗜 Allianz GI (China) announced the resignation of its Chief Compliance Officer, Gu Wen, effective October 8, 2024, due to personal reasons. The firm launched its first product, the Allianz China Select Balanced Fund, earlier this year. 💡 𝗘𝗧𝗙𝘀 | 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 To capture the market rebound, various fund companies, brokerages, and third-party internet sales platforms have been conducting educational services about ETFs. As of October 10, nearly 90% of the top 20 most-searched fund products on Eastmoney Information Co., Ltd.’s hot search list were index products. 💡 𝗘𝗧𝗙𝘀 | 𝗚𝗿𝗼𝘄𝘁𝗵 The surge from RMB2tr to RMB3tr in equity ETF AUM took just over two months. Seven fund companies now manage ETF AUM over RMB100bn each, with the top three being China Asset Management Co., Ltd., E Fund Management Co.,LTD. and Huatai-PineBridge Fund Management Co., Ltd. (Formerly AIG-Huatai); together, these seven companies manage nearly 80% of ETF AUM.   💡 𝗦𝗙𝗜𝗦𝗙 | 𝗖𝗜𝗧𝗜𝗖 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀, 𝗖𝗜𝗖𝗖 CITIC Securities Company Limited and China International Capital Corp have already submitted proposals to utilize the newly initiated swap facility, with CITIC Securities reporting a quota of around RMB10bn. Notably, CITIC Securities and CICC are the only securities firms qualified as primary dealers for the PBoC open market operations. 💡 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗿𝗲𝗲𝘁 𝗙𝗼𝗿𝘂𝗺 | 𝗖𝗦𝗥𝗖 CSRC Party Secretary and Chairman Wu Qing will deliver the keynote speech at the opening ceremony of the 2024 Financial Street Forum Annual Conference on October 19. Two key topics will be discussed: enhancing the role of the capital market to support new productivity and prioritizing investor interests by improving investor services.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

The foreign investors continued to withdraw capital from China A-share market via Hong Kong Connect Program in July 2024, but at slower pace. The total net outflow is RMB 17 billion for the month of July (June total net outflow RMB 44 billion), and the total YTD net inflow is RMB 13 billion (1 Jan to 2 August 2024), the lowest YTD inflow level since the Connect Program started ten years ago. #investing #ChinaAshares #ChinaCapitalInflow #ChinaForeignInvestors

China has merged two of its largest state-backed brokerage firms, Guotai Junan and Haitong Securities, creating a new financial powerhouse valued at $230 billion. This strategic move aims to consolidate China’s $1.7 trillion brokerage sector, enhancing the country’s ability to compete on a global scale, particularly with Wall Street. The merger reflects China’s ambition to strengthen its financial sector, boost market competitiveness, and potentially trigger further consolidation within the industry. This new entity will play a crucial role in elevating China’s financial services and global presence. #FinancialMarkets #China #Investment #GlobalEconomy #MergersAndAcquisitions #Brokerage

Today’s China Top Five: 💡 𝐈𝐧𝐛𝐨𝐮𝐧𝐝 | 𝐂𝐒𝐑𝐂 Shen Bing stated that the CSRC, in collaboration with the Ministry of Commerce, recently clarified operational guidelines for tax incentives for sovereign funds investing through the FII channel. CSRC is currently drafting revisions to rules on short-swing trading and algorithmic trading to reduce uncertainties for foreign investors in China’s market. 💡 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 | 𝗦𝗦𝗘 According to Shanghai Stock Exchange data, 20.31 million new accounts were opened in the first ten months of 2024, with 6.85 million opened in October alone. October 2024 saw an average daily turnover rate of 2.64%, a notable increase from the 1.2% average during January to September. 💡 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 | 𝗔𝗘𝗚𝗢𝗡, 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 On November 6, Yang Huahui, Chairman of Industrial Securities Co.,Ltd., met with Lard Friese, CEO of Aegon, in Shanghai to discuss strengthening their strategic partnership and development plans for AEGON Industrial FMC. 💡 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 | 𝗡𝗲𝘄 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 On November 6, the GF CSI A500 Index Fund and the CMB CSI A500 ETF Feeder Fund announced their establishment. These funds raised substantial net amounts: RMB7.996bn and RMB4.712bn, respectively, both ranking among the top three equity fund launches this year. 💡 𝗕𝗮𝗻𝗸 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 | 𝗠𝗶𝗻𝗶𝘀𝘁𝗿𝘆 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗲  The Ministry of Finance, with support from financial regulators, is advancing plans to inject capital into major state-owned banks using special treasury bonds. This initiative will bolster core Tier 1 capital in a phased, bank-specific approach.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews