FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Mexico: Investment News Letter 14 March 2013

Mexican Peso Gains for Fifth Day on Export Outlook; Bonds Rally

Why you should be excited about Mexico

Group Of Investors Acquires Important Stake In Aeromexico

Mexico eyes telecoms revolution

The Mexican government on Monday announced a sweeping proposal to limit the reach of telecoms tycoon Carlos Slim and broadcasting giant Televisa as part of efforts to boost competition in Latin America’s second-biggest economy. The bill, which forms part of the most ambitious economic reform agenda in a generation, seeks to establish a powerful industry regulator armed with an array of tools to curb companies’ control of markets, while opening up space for new investors.

Bold reforms of president buoy Mexico

If every government has a defining moment, that of Mexico’s new administration may have come this month when authorities arrested the head of the teachers’ union and put her behind bars without bail.

Mexico, among the lagged to do business

The study Doing Business 2012 locates the country in the 53rd place of 183 countries. Among the states with the best regulations are Colima and Aguascalientes.

Beer, tomato and avocado are among the most exported

U.S. is the main destination of the Agrifood exports of Mexico, with 74.2% but they also arrive to new markets, such as the Japanese.

Mexico will remain tied to the U.S.

The country exported almost 80% of their goods and for 2030 is expected that the neighbor to the north will capture 70% of Mexican exports.

For Mexican Insurers, Solvency II Reforms are all about the Details

As the global insurance industry prepares for the implementation in 2014 of the new risk-based capital requirements, known as Solvency II, many discussions about how new regulations will be written have been taking place in both local and international forums. Among the countries preparing for Solvency II is Mexico, where recently its Congress passed a new law that essentially sets the scaffolding for implementing Solvency II and merges current laws for the country’s insurance business. The new law’s primary objective is to strengthen the procedures for reserves calculation and defines levels of capital requirement according to each company’s risk profile. In contrast to what the current law required, the new one allows for a more precise distinction between capital and reserve requirements for different business lines under Pillar I of Solvency II, for strengthening corporate governance under Pillar II, and for adding more transparency under Pillar III.

Filed under: Latin America, Mexico, News, , , , , , , , , , , , , ,

Asia Trader & Investor Conference, Singapore 07-08 May 2011

ATIC @Singapore 2011 will feature more than 40 seminars conducted by international and local gurus and experts.  The Asian Trader and Investment Convention – Singapore
Covering topics like:

Futures | Equities | Options | ETF | CFD | Commodities | FOREX | Warrants | Alternative Investment | Property | Insurance | Managed Funds

Event Highlights

  • First in bringing breakthrough and new methods of trading
  • Over 50 investment educational seminars
  • A Specialised Panel of top analysts who will conduct real-time analyses of the same stock
  • Special Trading Focus Workshops on Stocks, Futures, Commodities, Gold, ETFs, Options and Warrants
  • Stock Analysis on Regional Markets by International Traders
  • Investor Clinics that help them improve trading
  • Investment Network Platform with different market segment experts
  • Property Investment Showcase – with property investment education and special panel discussion on Property vs Stock Investments
  • The largest Finance and Investment Book fair

First launched in 2006, Asia Trader and Investor Convention (ATIC) event has travelled to 7 Asian Cities, i.e., Singapore, Kuala Lumpur, Bangkok, Ho Chi Minh City, Mumbai, Shenzhen and Tokyo. With participation by over 300 financial services companies, including securities exchanges, retail and consumer banks, securities brokerage firms, asset/fund management firms, listed companies and other financial services providers, ATIC events have attracted over 100,000 active traders and serious investors across Asia.

Source: The ATIC, 05.05.2011

Filed under: Asia, China, Events, Exchanges, Indonesia, Japan, Malaysia, News, Singapore, Vietnam, , , , , , , , , , , , , , , , , , , , , ,

Risk Management – Solar Storms: Protecting Your Operations Against the Sun’s ‘Dark Side’

Recent scientific information indicates that an extreme solar storm cycle activity producing Geomagnetically-Induced Currents (GIC) is predicted to peak again in 2012. Some scientists are warning that the GIC from sunspots and solar flares could cause significant damage to the electrical grid, telecommunication and other devices.

Compared to disruption of the electrical grid from natural hazards and other sources, GIC related damage and disruption to the power distribution grid has the potential to have a very broad footprint across a large region for an extended period with possible cascading societal and economic impact.

On the other hand, this 2012 prediction could be a rather benign “non-event” similar to Y2K. Even if 2012 is a non-event, the threat of solar storms and associated space weather risks are rare but real and should not be ignored. Such an event does not have any precedence for comparison for the potential severity of impact. It can be considered an unrecognized catastrophic risk due to our increased reliance on technology today.

This paper provides background on the hazards associated with solar storms based on a review of available information from a variety of reliable resources and explores potential loss scenarios from Geomagnetically-Induced Currents (GIC) associated with solar storms activity.

Read full article here: Zurich 2010 – Protecting your Operations from Solar Storm

Read Full article here: Swiss Re 2000 – Space Weather Hazard to the Earth

Source: Zurich Service Corporation, 08.04.2010 by  A.V. Riswadkar and Buddy Dobbins, Risk Engineering,     Swiss Re, 2000 by Rene Favre, Risto Pirjola, Frank Jansen

Filed under: Energy & Environment, Risk Management, , , , , , , , , , ,

Chinese insurers clear to invest in real estate

Chinese insurance companies will be allowed to invest directly in commercial real estate for the first time under new regulations that are set to trigger a huge influx of cash into the country’s high-end property market.

New regulations allowing insurers to invest in real estate go into effect on Thursday, although details on investment limits and what types of property insurers can buy will not be released for another month at least, according to regulatory officials.

Conservative estimates put the amount of potential new investment by Chinese insurers in commercial real estate at $34bn (€23bn, £21bn), according to Jones Lang Lasalle, the real estate consultancy.

Based on current average capital values, $34bn is equal to more than twice the value of the Shanghai Grade A office market.

China’s high-end, investment-grade market has seen average investment of just $8.5bn in each of the last two full years, and has been falling since the end of last year as a result of the financial crisis.

The new regulations were “a key step in a process that has already seen a marked shift from a foreign-dominated real estate investment market to one where domestic players have assumed pre-eminence”, said David Hand, head of investments for Jones Lang Lasalle China.

China’s insurers had combined assets of $540bn at the end of August and given the suitability of real estate as an investment to match long-term insurance liabilities, analysts say they are likely to invest as much as they are allowed.

Considering the Chinese government’s record on liberalising insurers’ investment scope in the past it is likely the insurance regulator will move slowly and allow insurers to invest only about 5-8 per cent of their assets in real estate at the initial stage.

Chinese insurers are currently allowed to invest up to 10 per cent of their total assets directly in equities and another 10 per cent in equity investment funds. Before 2006 they were not allowed to invest directly in equities at all.

The expected influx of insurance investment to China’s commercial real estate will provide a huge boost in leading markets such as Beijing, where one-third of the office space is empty, prices are falling and total floor space is expected to double between 2007 and 2011.

It also comes at a time when foreign interest in the Chinese market has dried up as a result of the financial crisis and the bursting of property bubbles across the world.

Most Chinese insurers are directly owned by the state and some, including the People’s Insurance Company of China, have said they intend to invest in low-income housing when the new rules come into effect.

The largest insurance companies have been positioning themselves for at least three years in anticipation of eventually being allowed to invest in real estate.

Most have bought large office buildings in the centre of big Chinese cities that are ostensibly for their own use but in reality far exceed their own corporate office space requirements.

Source: FT, 29.09.2009 by Jamil Anderlini in Beijing

Filed under: Banking, China, News, Risk Management, Services, , , , , , ,