It’s less than a week before MSCI makes a decision on whether to include China A-shares in its closely followed indexes, but some investors reckon mainland-listed stocks may miss out on being approved yet again.
The South China Morning Post reports that Hu Yifan, chief China economist with UBS Wealth Management, reckons there’s a less than 50% chance A-shares will be approved on June 20. Here’s the details:
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Bloomberg News
This is the fourth consecutive year that MSCI, the global equity benchmark provider, has tabled the inclusion of A-shares in its benchmarks in the annual review. If the decision on June 20 was positive, formal inclusion will start a year later.
“The market has put a lot of hope (into the inclusion) this year, but we think the chance could be below 50 per cent,” said Hu.
“I think we are getting closer and closer (to the inclusion), but [it] still has the last mile to go,” she added.
Hu said the biggest remaining hurdle was the required approval from the China Securities Regulatory Commission (CSRC) for the launch of any A-share linked derivatives by foreign institutions in overseas markets.
India’s bad loan problem is frequently identified as in issue that needs to be dealt with as part of a larger set of reforms to drive growth in the world;s second most populous nation. Well, the Reserve Bank of India has signalled its going to take a tougher line with dead-beat borrowers by ordering the nation’s banks to start bankruptcy proceedings against the 12 largest loan defaulters. Here’s Reuters with the details:
The Reserve Bank of India (RBI) said on Tuesday it has identified 12 of the largest loan defaulters and will order lenders to start bankruptcy proceedings against them to start unclogging the $150 billion in bad debt plaguing Asia’s third-largest economy.
The move comes about a month after the government gave the RBI greater power to deal with bad loans, including directing banks to initiate an insolvency resolution process in the case of a default under the bankruptcy code.
The RBI said the 12 accounts constituted about 25 percent of the overall gross non-performing assets, adding it will direct lenders to begin insolvency proceedings around these accounts.
The committee narrowed the list to 12 by focusing on accounts owing more than 50 billion rupees ($777.2 million), where 60 percent or more of the loan had been already classified as non-performing by banks as of March 31, 2016.
Those 12 accounts were identified based on “objective, non-discretionary criterion” outlined by an internal advisory committee, the RBI said in a statement.
Singapore and Hong Kong are set to attract a growing share of the world’s wealth, outpacing long standing private banking hub Switzerland according to a new report from Boston Consulting Group. Bloomberg has the details:
Singapore and Hong Kong will attract wealth from abroad at more than twice the pace of Switzerland over the next four years as Asia’s economic expansion draws cash from millionaires, Boston Consulting Group predicts.
Perceptions that Singapore is safe and stable will also help to bring money to the Southeast Asian nation, according to BCG, which sees offshore assets there rising at a compound annual average rate of 8 percent through 2021. Hong Kong’s will climb 7 percent, more than Switzerland’s 3 percent, the consulting firm’s global wealth report showed Tuesday.
Switzerland remains the world’s No. 1 offshore wealth management hub with $2.4 trillion in assets, twice as much as Singapore’s, the report showed.
June 14, 2017 at 05:52AM
from Robert Guy
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