Z-Ben Advisors

Today’s China Top Five: 💡 𝗣𝗲𝗻𝘀𝗶𝗼𝗻𝘀 | 𝗡𝗣𝗖 The Standing Committee of the NPC conducted a review of the implementation of the Social Insurance Law as part of its 2024 oversight work plan. The report suggests that provinces with surpluses should consider mandating their pension funds to NCSSF for investment to enhance the fund's growth capacity. 💡 𝗠𝗮𝗿𝗸𝗲𝘁 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 | 𝗣𝗕𝗼𝗖 Pan Gongsheng, PBoC Governor, stated that the central bank will steadily advance the institutional opening of financial services and markets, enhance domestic and international financial market connectivity, and create a world-class business environment. 💡 𝗘𝗧𝗙𝘀 | 𝗖𝗵𝗶𝗻𝗮𝗔𝗠𝗖 China Asset Management Co., Ltd. held its annual index conference in Beijing, where it released the "ETF 20th Anniversary Investor Insight Report" and launched a new index investment service platform named "Red Rocket”. The platform is designed to provide a one-stop service for index investments, catering to both retail and professional investors. 💡 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 | 𝗦𝗭𝗦𝗘 On November 7, Shenzhen Stock Exchange signed a Memorandum of Understanding with Deutsche Börse and China Europe International Exchange AG (CEINEX) to collaborate on cross-border depositary receipts between China and Germany. This partnership builds on previous collaborations like the SZSE-Swiss and SZSE-London DR connectivity programs. 💡 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 | 𝗦𝗦𝗘 & 𝗦𝗭𝗦𝗘 Onshore exchanges released action plans to enhance the quality of listed companies. SZSE guidelines for sustainability reporting aim to promote ESG practices among listed companies, with an emphasis on enhancing disclosure and integrating sustainability into business strategies.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

𝐂𝐡𝐚𝐫𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐰𝐞𝐞𝐤 – 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟖, 𝟐𝟎𝟐𝟒   Foreign holdings of both onshore equities and bonds have increased markedly since the beginning of the year. However, trends and drivers diverged through the third quarter. Appetite for equities turned sharply positive towards the end of September following the announcement of policy stimulus measures. Conversely, fixed income flows turned negative for the first time this year with foreign investors selling treasuries and NCDs, as some unwound the China carry trade.

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

Today’s China Top Five: 💡 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗜𝗻𝗷𝗲𝗰𝘁𝗶𝗼𝗻 | 𝗖𝗜𝗧𝗜𝗖-𝗣𝗿𝘂𝗱𝗲𝗻𝘁𝗶𝗮𝗹 𝗟𝗶𝗳𝗲 CITIC Financial Holdings and Prudential plc will each invest an additional RMB1.25bn in CITIC-Prudential Life Insurance, raising its registered capital from RMB4.86bn to RMB7.36bn. This is the second such injection in the past year. 💡 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗔𝗽𝗽𝗿𝗼𝘃𝗮𝗹 | 𝗕𝗡𝗣 𝗣𝗮𝗿𝗶𝗯𝗮𝘀, 𝗩𝗼𝗹𝗸𝘀𝘄𝗮𝗴𝗲𝗻 China's National Financial Regulatory Administration has approved the establishment of BNP Paribas Tianxing Property Insurance Co., Ltd. in Beijing. The shareholders are BNP Paribas, Volkswagen Financial Services and a subsidiary of Xiaomi Technology. 💡 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 | 𝗡𝗲𝘄 𝗘𝗧𝗙𝘀 On November 5, the second batch of CSI A500 ETFs launched, raising nearly RMB5bn on the first day. The ChinaAMC CSI A500 ETF hit its cap of RMB2bn and sold out in a single day. Many sales institutions are reducing fees, with major banks like China Merchants Bank offering up to a 90% discount on subscription fees for CSI A500 funds. 💡 𝗥𝗘𝗜𝗧𝘀 | 𝗡𝗲𝘄 𝗜𝘀𝘀𝘂𝗮𝗻𝗰𝗲𝘀 The listing of the CICC LianDong Sci-Tech Innovation REIT on November 5 brings the total number of public REITs to 49. Another, the Yinhua Yuanshui Reservior REIT, will be listed on November 8. The CICC LianDong REIT raised RMB 1.617 billion with assets in three high-tech industrial parks in Beijing. 💡 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲𝗿𝘀 | 𝗗𝗼𝘂𝘆𝗶𝗻 Douyin (TikTok) financial livestreams have been promoting stocks, drawing tens of thousands of viewers and pushing small-cap stocks to daily limits. Despite disclaimers about risks, some streamers lack proper licensing and engage in indirect stock recommendations, marketing courses, and private consultations.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗠𝘂𝘁𝘂𝗮𝗹 𝗙𝘂𝗻𝗱𝘀 | 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 As of November 4, more than 80% of mutual funds had positive YTD returns. Almost 30 funds posted returns of more than 40%. The two leading products, BSE 50 trackers from China Asset Management Co., Ltd. and Zhong Ou Asset Management, have YTD returns of over 60%. 💡 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 | 𝗠𝗼𝗿𝗴𝗮𝗻 𝗦𝘁𝗮𝗻𝗹𝗲𝘆 Morgan Stanley has received operational approval for an onshore futures company. The entity received initial approval in May of last year and will be wholly-owned by Morgan Stanley. 💡 𝗡𝗲𝘄 𝗔𝗽𝗽𝗼𝗶𝗻𝘁𝗺𝗲𝗻𝘁 | 𝗖𝗣𝗜𝗖 𝗙𝘂𝗻𝗱 Richard Tang has been appointed as the general manager of CPIC Fund. He was formerly the head of the VanEck onshore WFOE. The former general manager of CPIC Fund resigned in June of this year due to reaching retirement age. 💡 𝗡𝗣𝗖 | 𝗟𝗼𝗰𝗮𝗹 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗗𝗲𝗯𝘁  The National People’s Congress is reviewing a bill to raise local government debt ceilings. Finance Minister Lan Foan previously outlined plans for a significant debt swap program and increased bond quotas to address hidden debt. 💡 𝗠𝗥𝗙 | 𝗭𝗲𝗮𝗹 Investors in the Zeal Voyage China Fund via the Mutual Recognition of Funds scheme have been notified that the fund manager of this product will step down. Subscriptions have been halted suggesting the fund, which has Tianhong Asset Management Co., Ltd. as is mainland representative, may be terminated.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝗻𝗲𝗰𝘁 | 𝗡𝗲𝘄 𝗣𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝗻𝘁𝘀 The first 14 brokers were approved to participate in the GBA Wealth Management Connect scheme. The new entrants include major mainland brokers, which will partner with their Hong Kong affiliates in order to provide Northbound and Southbound services. 💡 𝗠&𝗔 | 𝗕𝗿𝗼𝗸𝗲𝗿 𝗗𝗲𝗮𝗹𝗲𝗿𝘀 The market is closely watching the potential merger prospects among top brokerage firms in China, with CITIC Securities Company Limited & CSC Financial, and CICC & China Galaxy Securities Co. among the potential combinations. There may be senior personnel moves between CITIC Securities and CSC Financial ahead of any merger. 💡 𝗘𝗧𝗙𝘀 | 𝗙𝗹𝗼𝘄𝘀 A-share ETFs continued to experience net outflows last week, with only the CSI A500 ETFs attracting inflows. Broad-based ETFs, such as CSI 1000, CSI 500, and CSI 300, faced significant net outflows totaling RMB18.3bn. 💡 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 | 𝗡𝗲𝘄 𝗘𝗧𝗙𝘀  The second batch of CSI A500 ETFs received rapid approval on November 1. The 12 products will begin issuance as early as November 5. The ten existing CSI A500 ETFs attracted RMB24.3bn net inflows last week. 💡 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 | 𝗥𝗲𝗹𝗮𝘅𝗲𝗱 𝗥𝘂𝗹𝗲𝘀 The capital threshold for foreign strategic investors in public companies has been lowered from USD500m to USD300m and allowed strategic investments through tender offers, removing prior restrictions on minimum stake size.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗥𝗠𝗕 𝗔𝘀𝘀𝗲𝘁𝘀 | 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗛𝗼𝗹𝗱𝗶𝗻𝗴𝘀 As of the end of September, foreign institutions and individuals held RMB3.1tr in domestic Chinese stocks and RMB4.4tr in bonds. This end-of-September figure for foreign-held RMB stocks marks the highest level since September of the previous year. 💡 𝗘𝗧𝗙𝘀 | 𝗔𝗨𝗠 𝗚𝗿𝗼𝘄𝘁𝗵 ETF assets grew over 70% in under a year, from RMB2.05tr at end-2023 to RMB3.53tr by October 2024. Equity ETFs alone rose by over 90% in this period, reaching RMB2.77tr. The top 12 fund companies each manage over RMB100bn in ETFs, combined representing 87% of the market. 💡 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 | 𝗡𝗲𝘄 𝗙𝗶𝗹𝗶𝗻𝗴𝘀 On October 31, 12 fund companies, including leading players like E Fund Management Co.,LTD. and China Asset Management Co., Ltd., filed for a second batch of CSI A500 ETFs with CSRC. As of October 30, the first ten CSI A500 ETFs saw their combined scale reach RMB61.4bn. 💡 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝗶𝗲𝘀 | 𝗚𝗼𝗹𝗱 𝗘𝗧𝗙𝘀  As of October 25, China's total gold ETF holdings surpassed 100 tons, marking a 49% year-over-year increase in holdings and a 91% increase in AUM according to World Gold Council data. By the end of October, onshore gold ETF AUM had grown to surpass RMB70bn, with the largest from Hua An Fund Management Co. Ltd. approaching RMB30bn. 💡 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗙𝘂𝗻𝗱𝘀 | 𝗡𝗲𝘄 𝗠𝗮𝗻𝗮𝗴𝗲𝗿𝘀 Ten private fund managers completed registration in October, all focused on private equity or venture capital. Since the new Operational Guidelines for Private Securities Investment Funds took effect on August 1, only six private securities managers registered in August and three in September, with none in October.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

𝐂𝐡𝐚𝐫𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐰𝐞𝐞𝐤 – 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟏, 𝟐𝟎𝟐𝟒   The recent rollout of the CSI A500 ETFs and related funds is a prime example of the scale of flows that can be achieved when a new initiative aligns with both fund manager and regulatory agendas. Following the initial ten ETFs, a second round of 17 products are at varying stages of fundraising and a further dozen ETFs are in the pipeline, pointing to the fierce competition that such an approach elicits.

Today’s China Top Five: 💡 𝗠𝘂𝘁𝘂𝗮𝗹 𝗙𝘂𝗻𝗱𝘀 | 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 As of October 30, 916 new funds have been established this year, with fundraising totaling RMB883bn – an increase of over RMB30bn from the previous year. Bond funds have dominated, bringing in RMB688bn. 💡 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗦𝗮𝗹𝗲𝘀 | 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬 Managers and distributors are pushing hard on sales of the CSI A500 index-related products. China Merchants Bank, for example, has established a dedicated segment on its app. Fund company staff are leveraging social media to generate interest, with some even changing their profile pictures to promote the products. 💡 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆 | 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 Since the CSRC launched the fund advisory pilot in 2019, the industry has grown from scratch. Notable progress includes expanded advisory strategies, diversified service models, and improved customer satisfaction. Regulatory advancements, such as 2023 guidelines, aim to transition advisory services from pilot to routine status. 💡 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲 𝗔𝗽𝗽𝗼𝗶𝗻𝘁𝗺𝗲𝗻𝘁 | 𝗖𝗵𝗶𝗻𝗮 𝗟𝗶𝗳𝗲  On October 30, China Life Insurance Co.Ltd announced that Cai Xiliang was elected as the Executive Director and Chairman of the company, pending approval from NFRA. Cai joined China Life Group in 2022, serving as Deputy Party Secretary and later Vice Chairman. He also chairs China Life Asset Management and China Life Property Insurance. 💡 𝗧𝗲𝗮𝗺 𝗖𝗵𝗮𝗻𝗴𝗲 | 𝗖𝗜𝗖 It is reported that Qi Bin will leave his position as Deputy General Manager and Deputy CIO at China Investment Corporation, having served in this role for eight years since transferring from CSRC. Qi may take on a role within a regulatory agency or be assigned to a provincial government.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗠𝘂𝘁𝘂𝗮𝗹 𝗙𝘂𝗻𝗱𝘀 | 𝗙𝗼𝗿𝗲𝗶𝗴𝗻-𝗼𝘄𝗻𝗲𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗿𝘀 In 3Q24, BlackRock (China) AUM surpassed RMB5bn, recovering from RMB3.6bn in 2Q24, on the back of new fund issuances. Fidelity (China) also saw a slight increase, reaching RMB6.4bn, while others like Neuberger Berman (China) and Schroders (China) experienced declines. 💡 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 | 𝗔𝗺𝘂𝗻𝗱𝗶 Amundi reported EUR1.7bn inflows from China outside of its two joint ventures in the first nine months of 2024, largely from institutional clients. The Amundi BOC WM joint venture posted net outflows of EUR0.7bn in 3Q24, taking AUM to EUR3bn. 💡 𝗔𝗻𝗻𝗶𝘃𝗲𝗿𝘀𝗮𝗿𝘆 | 𝗖𝗵𝗶𝗡𝗲𝘅𝘁 October 30 marks the 15th anniversary of the ChiNext Board. Since the first ChiNext ETF launched in 2011, AUM for ChiNext Index products have grown to a total of RMB180bn. Notably, the E Fund ChiNext ETF has seen inflows of more than RMB40bn this year to take AUM beyond RMB130bn. 💡 𝗣𝗿𝗼𝗽𝗿𝗶𝗲𝘁𝗮𝗿𝘆 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 | 𝗙𝘂𝗻𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗿𝘀  Several fund companies announced substantial proprietary investments in their CSI A500 Index-related funds. INVESCO Greatwall Fund Management Co. plans to invest RMB15m, and China Asset Management Co., Ltd. intends to invest no less than RMB30m. Southern, Bosera, China Merchants Fund, and Harvest have also made similar announcements. 💡 𝗣𝗮𝘀𝘀𝗶𝘃𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 | 𝗕𝗮𝗻𝗸 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 Amid decreased interest in actively managed funds, banks are turning their focus to index products. Banks view the current index fund trend as an opportunity to grow fee-based wealth management services, seeking to add value beyond traditional deposit products.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews