MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Under the existing templates with UK and Hong Kong authorities, banks will be allowed to launch funds with allocations to listed equities, fixed income, or registered funds. However, the scheme does not permit investments in hedge funds and other alternative investments at this stage.
The Nikkei 225 index jumped nearly 600 points on the announcement, closing at 13,914 points yesterday (the memorandum was signed last Friday, February 22). Japanese investors are also pouring into the market on rumours that China's sovereign wealth fund, the $200 billion China Investment Corporation (CIC), is planning to acquire a stake in the Tokyo-listed oil & gas developer Inpex Holdings.
CIC's spokesman in Beijing says he is "unaware" of the acquisition at this stage.
China's bank QDII programme is targeted at high-net-worth customers that want to invest in overseas funds. Investments start from Rmb100,000 ($14,019) or Rmb250,000 ($35,048) per tranche.
A bank's investment plan is required to be approved by regulators under existing CSRC rules prior to the launch of a fund. It is a process that can take up to three months, and longer in bullish periods when the regulator puts the brakes on fund launches in order to prevent the market from overheating.
A survey of leading QDII managers by HSBC's equity strategist Steven Sun ranks Japan as the least preferred investment destination out of all of Asia. Sun cites historical sensitivity as the chief reason for the lack of interest.
Meanwhile, Z-Ben Advisors, a Shanghai-based research agency, notes QDII funds are expected to face a challenging year in 2008 because investor confidence has been damaged by earlier QDII launches. He says there was a significant mismatch between investment performance and expectations from mainland investors in the second half of 2007.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.