Taiwan's biggest fund house is moving to build its business across Asia with the help of partner firms or staff expansion in markets including Hong Kong, Indonesia, Korea and Japan.
The region's exchange traded funds and products enjoyed record-breaking net new asset growth in the first six months of 2016, due to strong performance in emerging Asian markets.
CSOP has listed only the second oil ETF in Hong Kong after Samsung AM. It is targeting Chinese clients amid strong flows into oil funds on the mainland, as well as elsewhere in the region.
The Taiwanese fund house intends to enter the alternatives space amid expected regulatory changes, and is readying more passive products, which now account for most of its AUM.
Taiwan fund houses Yuanta and Fubon are ready to launch inverse and leveraged ETFs tracking Japan and the US equity indexes, in a bid to capture growth of the island’s ETF market.
Taiwan fund house Yuanta SITC is set to launch the ETFs, which track China’s CSI300 index, on the island in May. But concerns have been raised over the risky products' availability to retail investors.
After a six-month delay the firm will list Taiwan's first gold-focused exchange-traded fund in early April, taking advantage of the regulator's liberalisation of rules. Another is to follow.
Optimism has greeted the arrival of two landmark products from Yuanta, with firms such as Fubon set to follow suit, while Hong Kong is seen as some way from approving such ETFs.
The country's biggest fund house is readying what would be the first gold and crude oil ETFs to list locally, following the relaxation of rules governing the use of futures.
London and Singapore have received RQFII quota in the past month ahead of Taiwan, meaning product differentiation is now even more important for Taiwanese fund houses, says Yuanta.
After launching a fixed income mutual fund in China, Taiwan's Yuanta will roll out a more unusual cross-border ETF, a big step forward for China, Hong Kong and Taiwan.
With an RMB clearing bank about to be established in Taiwan, industry players reflect on the potential opportunities and how they believe the market will grow.