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Will it provide further boost to China stock market, after the inclusion...

China convinces Mobius it’s ready for MSCI

May 13): China is starting to convince international money managers that its US$7.8 trillion stock market is ready for MSCI’s global indexes.

Templeton Emerging Markets Group’s Mark Mobius, who was against inclusion as recently as March, became the latest convert on Tuesday, saying his funds are now buying yuan-denominated shares.

Five of nine global investors interviewed by Bloomberg over the past month say Chinese stocks should be added to the indexes after getting rejected last June.

While detractors want China to further relax investment curbs and provide more tangible proof of share ownership, funds in favour of inclusion point to the ease of access through the Hong Kong exchange link and clarified tax laws.

For Chinese authorities, who met with money managers in the US two months ago to make the case for MSCI inclusion, gaining acceptance is part of a broader effort to professionalize the stock market and boost the yuan’s role in global finance.

“Every time MSCI came around, I said ‘Forget it. We can’t invest,’” Mobius, who oversees about US$40 billion in emerging markets, said in an interview in London on Tuesday. “Now we can, and I have no objection.”

The New York-based index provider, whose gauges are used to benchmark an estimated US$9.5 trillion of assets, will say on June 9 whether China is eligible for inclusion.

It rejected the country 11 months ago after a yearlong consultation with investors.

MSCI can’t comment on the issue before its announcement next month, Chia Chin-ping, a Hong Kong-based managing director, said in a phone interview.
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http://www.theedgemarkets.com/sg/article...ready-msci

No wonder his botak gets brighter and brighter

(13-05-2015, 03:20 PM)CityFarmer Wrote: [ -> ]Will it provide further boost to China stock market, after the inclusion...

China convinces Mobius it’s ready for MSCI

May 13): China is starting to convince international money managers that its US$7.8 trillion stock market is ready for MSCI’s global indexes.

Templeton Emerging Markets Group’s Mark Mobius, who was against inclusion as recently as March, became the latest convert on Tuesday, saying his funds are now buying yuan-denominated shares.

Five of nine global investors interviewed by Bloomberg over the past month say Chinese stocks should be added to the indexes after getting rejected last June.

While detractors want China to further relax investment curbs and provide more tangible proof of share ownership, funds in favour of inclusion point to the ease of access through the Hong Kong exchange link and clarified tax laws.

For Chinese authorities, who met with money managers in the US two months ago to make the case for MSCI inclusion, gaining acceptance is part of a broader effort to professionalize the stock market and boost the yuan’s role in global finance.

“Every time MSCI came around, I said ‘Forget it. We can’t invest,’” Mobius, who oversees about US$40 billion in emerging markets, said in an interview in London on Tuesday. “Now we can, and I have no objection.”

The New York-based index provider, whose gauges are used to benchmark an estimated US$9.5 trillion of assets, will say on June 9 whether China is eligible for inclusion.

It rejected the country 11 months ago after a yearlong consultation with investors.

MSCI can’t comment on the issue before its announcement next month, Chia Chin-ping, a Hong Kong-based managing director, said in a phone interview.
...
http://www.theedgemarkets.com/sg/article...ready-msci

This is wonderful news...time to get ready!

A third one in the making...

This Chinese developer has three days to prove it’s not Kaisa II

May 15): Renhe Commercial Holdings faces the glare of the offshore bond market next Monday when the Chinese developer shows its ability to repay debt.

The pressure on Renhe comes after Standard & Poor’s called its recent discounted buyback of dollar notes a “distressed exchange” that equalled a default.

The mall builder is scheduled to repay US$79 million of securities maturing on May 18 to investors who snubbed the December offer.

Tensions are simmering in China’s US currency debt market after two companies defaulted on coupons in the last month amid signs of more financial stress in the world’s second-biggest economy.

While Renhe has enough cash to pay Monday’s bills, honouring a further US$161 million of bonds maturing next year could prove a more challenging task, according to S&P.

“I’d be surprised if Renhe risks their going-concern by not paying up,” said Xuanlai He, a Singapore-based credit analyst at Commerzbank.

“It’s still early to make a call on their 2016 debt. Their business isn’t going well and they may need to raise more cash or roll over loans to boost confidence among offshore investors.”

E-mails and calls to Renhe’s media and investor relations departments weren’t replied to.

A person answering the phone at its headquarters on May 13 said the finance department couldn’t answer questions about its bond redemption plan. The firm is based in the northern city of Heilongjiang in Harbin.

Chairman and founder Dai Yongge controls 49.4 percent of the company, which listed in Hong Kong in October 2008.'
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http://www.theedgemarkets.com/sg/article...t-kaisa-ii

wow use cold hard cash to buy back debt also construed as negative now...

China flash PMI contracts for third month

FERGUS RYAN BUSINESS SPECTATOR MAY 21, 2015 12:56PM


Activity in China’s manufacturing sector has contracted for the third month in a row, according to a private survey.

The HSBC Flash China Manufacturing PMI rose less than expected to 49.1 in the flash reading for May, up from 48.9 in April.

The reading fell short of a Reuters poll which had the result at 49.3. A reading above 50 on the survey points to expansion, while a reading below 50 indicates contraction.

Economist at Markit Annabel Fiddes said that softer client demand and job cuts might make it difficult for the sector to expand in the near-term.

However Ms Fiddes said that deflationary pressures remained strong “leaving plenty of scope for the authorities to implement further stimulus measures if required”.

The flash reading is a preliminary estimate based on around 85 to 90 per cent of survey responses from more than 420 small-to-medium-sized manufacturing firms.

The report said that factory production decreased from last month’s no-change level, falling to its lowest in 13 months. New export orders also declined after growing last month.

The latest numbers raises expectations that Beijing will roll out further measures to shore up economic growth.

China’s economy, the world’s second biggest, expanded at its slowest pace in six years in the first quarter.

With AP

looks like china will have to lower rates some more. if PMI keeps contracting, how do they maintain their 7% GDP growth?

Here comes the mutual-fund, after the direct-link for equity...

China-Hong Kong cross border mutual-fund sales to start in July

(May 22): China and Hong Kong will start cross-border sales of mutual funds on July 1, making it easier for global asset managers to tap the nation’s huge pool of savings and broadening investor access to the world’s best-performing equities.

The initial quota for the program will be 300 billion yuan (US$48.4 billion) for in and out fund flows each way, regulators in China and Hong Kong said in a joint statement.

The regulators will establish a way to vet funds, it said.

Mutual recognition opens a new channel for foreign asset companies to tap household savings of around US$8 trillion in China, where tight capital controls remain.
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http://www.theedgemarkets.com/sg/article...start-july

will benefit the index stocks since most fund mgrs are closet indexers. Except PRC FMs, who seems to be speculators..

[quote='opmi' pid='113382' dateline='1432313567']
will benefit the index stocks since most fund mgrs are closet indexers. Except PRC FMs, who seems to be speculators..

Probably existing funds who benefitted too. Since most funds hold the same things.
And they would likely buy more of the same things.