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Mexico: Fibras acaparan la colocación bursátil MBV

De las 17 colocaciones que se han realizado en la Bolsa Mexicana de Valores (BMV) en lo que va del año, cinco corresponden a los Fideicomisos de infraestructura en bienes raíces (Fibras).

Estos cinco fideicomisos representan 34% de todas las colocaciones en el año. Dicho porcentaje muestra la fortaleza que significa la actividad inmobiliaria para el mercado bursátil mexicano.

Además, la participación de las Fibras es destacable por su monto de colocación, ya que emite 46,377 millones de pesos, de los aproximadamente 120,000 millones de pesos hasta ahora recabados.

Pero si no se considera la cifra histórica del Grupo Financiero Banorte -27,815 millones de pesos-, el capital recabado en la BMV suma 91,568 millones de pesos; de este monto, los recursos obtenidos por medio de las Fibras representa una participación cercana a 51 por ciento.

Entonces, las cinco Fibras han recabado poco más de la mitad de los recursos en la BMV tan solo del 30 de enero al 24 de julio de este año.

El porcentaje de recursos obtenidos por los Fideicomisos da certeza y refleja una perspectiva favorable de que constituye una de las principales plataformas de financiamiento para las empresas que operan en el país, así como un importante vehículo de inversión.

Dada la evolución positiva de las Fibras en lo que va del año, José Manuel Allende, director general adjunto de Promoción y Planeación de la BMV, no descartó que en lo que resta del año se anuncien nuevas colocaciones de estos Fideicomisos.

Para septiembre próximo se espera el lanzamiento de una nueva Fibra, la de Grupo Danhos. En tanto que a la fecha hay seis Fideicomisos de inversión en bienes raíces listadas en la BMV: Fibra Uno, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra y Fibra Shop.

El desempeño y operatividad de las Fibras ha destacado desde que salieron al mercado de valores en México, ya alcanzan altos niveles de operación y de acuerdo con el índice de bursatilidad de la BMV, dos Fideicomisos se encuentran en el segmento de alta bursatilidad y tres más están en un rango medio, dijo Jorge Plácido, director de Análisis y Estrategia de Inversión de Vector.

Sin lugar a dudas ha sido un instrumento con muy buena aceptación entre los inversionistas y se prevé que tenga un crecimiento interesante en el futuro, ya que tiene diversas ventajas.

Para el sector inmobiliario, la llegada de las Fibras trajo importantes beneficios que impactarán también en el crecimiento del sector productivo construcción México y representa una de las mejores vías para acceder a financiamiento.

EMISIONES BMV 2013  DEL 30 DE ENERO AL 24 DE JULIO

FECHA

EMISOR

MONTO

(*MDP)

24/07/2013

FIBRA SHOP

5,466’319,197.50

27/07/2013

BANORTE

27,814’854,210.00

10/07/2013

GRUPO AEROPORTUARIO DEL CENTRO NORTE (OMA)

2,760’000,000.00

26/06/2013

CORPORACIÓN INMOBILIARIA VESTA

2,865’997,372.50

26/06/2013

GRUPO FINANCIERO INBURSA

12,548’681,522.00

21/06/2013

OHL MEXICO

6,993’508,369.00

14/06/2013

HOTELES CITY EXPRESS

2,915’603,088.00

03/06/2013

DESARROLLADORA Y OPERADORA DE INFRAESTRUCTURA HOSPITALA-RIA DE IXTAPALUCA

1,845’000,000.00

03/06/2013

SERVICIOS INTEGRADOS DE PASAJE Y TURISMO

3,500’000,000.00

31/05/2013

FIBRA HOTELERA MEXICANA

4,877’725,000.00

22/03/2013

INFRAESTRUCTURA ENERGETICA NOVA

7,415’757,000.00

20/03/2013

PLA ADMINISTRADORA INDUSTRIAL (FIBRA TERRA)

9,521’540,000.00

13/03/2013

FIBRA INN

4,460’457,244.50

13/03/2013

GRUPO DINIZ

250’000,000.00

26/02/2013

GRUPO CIOSA

150’000,000.00

31/01/2013

ORGANIZACION CULTIBA

3,944’696,770.00

30/01/2013

FIBRA UNO

22,050’000,000.00

* Millones de pesos  (Judith Santiago / Mexican Business Web)

 Artículos relacionados

  1. Fibras tras proyectos de infraestructura
  2. Fibras aportan liquidez a desarrolladores inmobiliarios
  3. Fibras impulsan construcción de corporativos

Source: MexicanBusinessWeb, 19.08.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Cemex aims for $950m Latin American float in Colombia

Cemex, the Mexican cement producer, hopes to raise up to $950m from the partial sale of its Latin American subsidiary, people familiar with the deal told the Financial Times on Monday.

The company has set a price range of 11,000-13,500 Colombian pesos a share for the sale of about 24 per cent, or 126.6m shares, in Cemex Latam Holdings, Cemex’s Central and South American unit, in a forthcoming initial public offering on the Colombian stock exchange.

 
FT related CEMEX news:
The IPO of Cemex Latam, which includes Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama, is part of the company’s ongoing efforts to pay down its high debt. As of end of September, gross debt, which includes perpetual notes, stood at $17.7bn.

The planned IPO follows a recent refinancing agreement for about $7bn in loans, which extends maturities by three years from 2014 to 2017. At the time, analysts welcomed the agreement, saying that it bought the company valuable time to allow global cement markets to recover.

“The refinancing lays to rest any residual concerns about the company’s solvency,” one analyst who asked not to be named, told the FT recently.

That, coupled with positive results during the third quarter – Cemex said that earnings before interest, taxes, depreciation and amortisation (ebitda) between July and the end of September grew 9 per cent compared with last year to reach $730m, the highest ebitda generation in three years – has fuelled a rally in the company’s share price this year.

For years, Cemex was considered one of the most successful “multilatinas” as Latin American multinationals are known, as it embarked on a 20-year acquisition spree that turned it into the world’s third-largest cement producer by volume.

But the Monterrey-based company came unstuck following its purchase of Rinker, the Australian building-materials supplier, for $15.3bn – an acquisition it financed with short-term loans and that came on the cusp of the US housing crash.

Source: Financial Times, 22.10.2012

Filed under: Colombia, Exchanges, Mexico, News, , , , , , , ,

Latin America: Investors Newsletter 31 August 2012

Mexico

Analysis: Spanish cloud may mean discount for Santander Mexico listing
Mexico Pension funds hungry for Santander unit offering
Colombia Considering Move From Brazil’s to Mexico’s IMF Group
Delta Repair Center With Aeromexico to Boost Aerospace Hub in Queretaro
Brazil

Fitch says Brazil’s infrastructure plan as execution risk
SEC Charges Brokers for Defrauding Brazilian Public Pension Funds
Will increased stimulus for Brazilian transport infrastructure be sufficient?
Brazil’s BES Investment Bank Focuses on Infrastructure
Canadian pension funds cautious on Brazilian infrastructure plan

Latin America

Colombia Brags of Overtaking Argentina as Echeverry Eyes IMF Job
Colombia-led Group to Build $396 Million Peru Highway
Ferrovial sells BAA stake to fund Latin America push
Is Venezuela about to open up to foreign oil investment?
Investment insights from a Peruvian beach
YPF chief promises to protect foreign oil companies’ profits if they invest in Argentina

See also LIQ Latin America Infrastructure ALI Alternative Latin Investor  or MercoPress more information about Latin America

Filed under: Argentina, Brazil, Chile, Colombia, Latin America, Mexico, News, Peru, Venezuela, , , , , , , , , , , , , , ,

Brazil: BM&FBOVESPA News August 2011 Nr 29

BM&FBOVESPA International Financial and Capital Markets Conference features Robert Skidelsky and Michael Pettis

The biennial meeting held as of Thursday (August 25) in the town of Campos do Jordão in the state of São Paulo will host debates on current economic and global financial market issues, including challenges for the derivatives and capital markets, the future of financial intermediation, and algorithmic trading strategies. BM&FBOVESPA Chief Executive Officer Edemir Pinto and Chairman of the Board of Directors Arminio Fraga will receive, for lectures and debates, some of the world’s most influential experts about the matters on the agenda. Among their number are Robert Skidelsky, Emeritus Professor of Political Economy at the University of Warwick, and a specialist on the work of the economist John Maynard Keynes. Michael Pettis, a professor at Peking University’s Guanghua School of Management and expert on the Asian markets will take part in a discussion about the challenges that the Brazil-China relationship will face over the coming years.

> Full agenda of the event

BM&FBOVESPA launches eight new currency derivatives

BM&FBOVESPA launched eight new currency futures contracts this week (August, 15). They are six futures contracts and two mini futures contracts. The regular futures contracts are for the Brazilian Real against the South African Rand (ZAR), Turkish Lira (TRY), New Zealand Dollar (NZD), Chilean Peso (CLP), Chinese Yuan (CNY) and Swiss Franc (CHF). The contracts will be authorized for trading as of the September 2011 maturity, between 9:00 a.m. and 6:00 p.m. Each futures contract is sized and formatted so that it is equivalent to the USD 50,000 size of U.S. Dollar futures contract. The sizes of the respective contracts are 350,000 South African Rands; 350,000 Chinese Yuan; 75,000 Turkish Lira; 75,000 New Zealand Dollars; 50,000 Swiss Francs; and 25 million Chilean Pesos. The Mini U.S. Dollar Futures Contract (WDO) is sized USD 10,000, which represents 20% of the size of the regular U.S. Dollar Futures Contract. The Mini Euro Futures Contract (WEU) is sized €10,000, representing 20% of the size of the regular Euro Futures Contract .

> More info

International partnerships mark the expansion of the BM&FBOVESPA Institute of Education

The BM&FBOVESPA Institute of Education has been known as the “Escola para os Mercados Financeiro, de Capitais e de Derivativos” (Financial, Capital and Derivatives Markets School) since its foundation in 1986. Growing demand for professional training, however, means it has broadened its scope since 2010 and it has also begun operating as the “Escola do Investidor” (School of the Investor) and the “Escola de Empresas e Empreendedores” (Enterprises and Entrepreneurs’ School). In the first half of 2011 the Institute of Education signed cooperation agreements with internationally renowned business schools, among which the Endeavor Institute, Babson College and Chicago Booth:

  • Endeavor Institute – the “Bota pra fazer” (Sow to Reap) program of courses aimed at startup companies, in business incubators. This methodology was developed by Endeavor Brazil in partnership with the Kauffman Foundation. The Institute of Education was the first institution in Brazil to apply this methodology for qualifying entrepreneurs.
  • Babson College – Through this partnership, the BM&FBOVESPA Institute of Education offers the “Gestão e Crescimento Empresarial de Alto Impacto” (High Impact Business Management and Growth) program of courses, hand-tailored to enable Brazilian entrepreneurs to lead their companies’ growth. The second group begins in October this year.
  • Chicago Booth – The business school of the University of Chicago. This partnership has resulted in the development of a three-module academic program, focused on the capital and derivatives markets and with an international approach.  Next course in December.

BM&FBOVESPA’s options and capital raising activity

According to the World Federation of Exchanges (WFE) BM&FBOVESPA is ranked as #1 in volume of Equity Option trades and #4 (Capital Raised) in terms of newly listed companies (IPOs). These and other regulated exchange industry numbers are available at:
http://www.world-exchanges.org/statistics

Market Makers for Options on the Stock of BM&FBOVESPA, Usiminas and BOVESPA Index

BM&FBOVESPA announced on August 3 the start of the selection process for up to three market makers for options on the stock of BM&FBOVESPA S.A (BVMF3) and Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas (USIM5) and for options on the BOVESPA Index (IBOV). This is the second stage of the Bidding Program to select market makers in equity options and BOVESPA Index options, developed by the Exchange. Institutions that are interested in taking part – including nonresidents – have until September 26, 2011 to deliver proposals. The winners will be announced on October 11, 2011.

> More information about the Market Makers for Options

Bradesco wins BM&FBOVESPA selection process as Depositary Institution for 10 Unsponsored Level I BDR Programs

Bradesco has won the sixth selection process for depositary institutions authorized to request registration for trading 10 Unsponsored Level I Brazilian Depository Receipt (BDR) programs, backed by shares issued by publicly traded companies with headquarters overseas. Bradesco should simultaneously present BM&FBOVESPA and the Brazilian Securities and Exchange Commission (CVM), within 60 calendar days, with the necessary documentation for submission to register the 10 Unsponsored Level 1 BDR programs. The programs should include foreign companies that do not yet have BDRs traded on BM&FBOVESPA and which are headquartered in the United States and listed on U.S. stock exchanges.

There are currently 30 Unsponsored Level 1 BDR programs available for trading on BM&FBOVESPA, which have Deutsche Bank S.A., Citibank DTVM S.A. and Itaú Unibanco S.A. as their depositary institutions. Another three lots of ten programs shall be presented to the market soon by Banco Bradesco S.A., Citibank DTVM S.A. and Deutsche Bank S.A.

> More info

Up to USD 10 billion in public offerings and follow-ons in 2011

In the year to August 15, BM&FBOVESPA registered USD 10.1 billion in public offerings and follow-ons. There were eleven Initial Public Offerings (IPOs) in 2011: AREZZO&CO (ARZZ3), SIERRA BRASIL (SSBR3), AUTOMETAL (AUTM3), QGEP PART (QGEP3), IMC HOLDING (IMCH3), TIME FOR FUN (SHOW3), MAGAZINE LUIZA (MGLU3), BR PHARMA (BPHA3), QUALICORP (QUAL3), TECHNOS (TECN3) and ABRIL EDUCAÇÃO (ABRE11). At the end of July, the 181 companies that are part of the BM&FBOVESPA’s special corporate governance levels represented 64.96% of market capitalization, 79.04% of financial volume, and 76.84% of trades in the spot market. At the end of June, there were 177 companies, representing 65.56% of market capitalization, 75.42% of financial volume, and 77.57% of spot market trades.

Number of ETF trades grows 25% from June

The financial volume registered in July by the eight BM&FBOVESPA Exchange-Traded Funds (ETFs) reached BRL 667.75 million in 31,997 trades, from BRL 598.43 million and 25,701 the previous month. In July the ETF with the highest financial volume was BOVA11 with BRL 573.83 million and 26,915 transactions.

2011 EVENTS

BM&FBOVESPA 5th International Financial and Capital Markets Conference

The city of Campos do Jordão will once again be the site of one of the year’s most important financial market events, hosted by BM&FBOVESPA. The 5th edition of the International Financial and Capital Markets Conference will have national and international guest speakers, round-table discussions, social activities and an exhibition area providing an excellent venue for participants to debate some of the most significant financial topics. Speakers include: Maria Helena Santana (Securities and Exchanges Commission of Brazil – CVM), Robert Engle (2003 Nobel Prize), Joe Gawronski (COO of Rosenblatt Securities) and Ilan Goldfajn (Chief Economist, Itau Unibanco).

Location: Campos do Jordão, SP, Brazil
Date: August 25-27, 2011

> Full agenda of the event

*Nonresident investors can apply for an exclusive 50% discount for registration at the event. Please contact the International Business Development team to request your coupon, by email to ysilva@bvmf.com.br or drodrigues@bvmf.com.br

BM&FBOVESPA at Chicago’s FIA EXPO

BM&FBOVESPA will exhibit at FIA EXPO 2011. The event attracts approximately 5,000 people from more than 30 countries, from senior staff at brokerage firms and exchanges, to floor traders, pension fund managers, corporate treasurers, CTAs and CPOs, and individual investors. BM&FBOVESPA staff will present the Exchange’s products, connectivity, DMA access via Globlex, etc.

Location: Hilton Chicago, USA
Date: October 10-12, 2011

> More info

Family Office Summit – Latin America

BM&FBOVESPA is currently sending invitations for this event promoted by the World Research Group and which will be held in São Paulo September 26-28. A BM&FBOVESPA representative is scheduled to talk about alternative investments. The summit will present current Trends for Optimizing Effective Strategies and Alternative Methods to Produce Investments for Single and Multi Family Offices in the Brazilian capital market. There will be a special networking session bringing together managers, single and multi family offices, advisors and consultants.

Location: Intercontinental São Paulo – Alameda Santos, 1123, São Paulo , SP.
Date: September 26-28, 2011.

> Full Agenda and Registration

2nd FX Growth Markets Series: Brazil – Profit & Loss

BM&FBOVESPA will join the Profit & Loss FX Growth Markets conference on October 20, 2011 at the Tivoli Hotel in São Paulo. Profit & Loss has been operating its highly successful series of Forex Network and FX Growth Markets conferences for more than 10 years, with regular annual events held in London, New York, Chicago, Singapore, Brazil, Mexico, Colombia, Chile, Shanghai and Toronto, and comes to Brazil for the second time. A BM&FBOVESPA representative will talk at the event.

Location: Tivoli Hotel São Paulo, São Paulo, Brazil
Date: October 20, 2011.

> Full Agenda

Volumes and trades by Direct Market Access (DMA)

BM&F Segment
In July, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 20,009,841 contracts traded and 2,417,398 trades. In June, the volume reached 20,409,252 contracts traded and 2,105,981 trades.

The volumes registered by each access modality in the BM&F segment were as follows:

  • Traditional DMA – 7,440,774 contracts traded, in 797,002 trades, in comparison to 8,168,492 contracts and 775,388 trades in June;
  • Via DMA provider (including orders routed via the Globex System) – 7,040,432 contracts traded, in 258,881 trades, compared to 7,365,306 contracts and 260,441 trades in June;
  • DMA via direct connection – 3,691 contracts traded in 977 trades, against 8,995 contracts and 1,376 trades in June;
  • DMA via co-location – 5,524,944 contracts traded, in 1,360,538 trades, compared to 4,866,459 contracts and 1,068,766 trades in June.

In July, transactions carried out by foreign investors presented by CME to BVMF (who use the Globex-GTS order routing system or access BVMF markets via co-location) totaled 2,897,744 contracts traded, in 688,862 trades, compared to 2,658,361 contracts and 623,653 trades in June.

BOVESPA Segment
In July, order routing via DMA in the BOVESPA* segment totaled BRL 95,030,778,000.00 and 11,225,193 trades, from BRL 88,977,494,000.00 and 10,244,578 trades the previous month.

Trading volumes per type of DMA in the BOVESPA segment:

  • Traditional DMA – Volume of BRL 87,674,861,000.00 and 10,091,956 trades from BRL 82,843,187,000.00 and 9,287,652 in June;
  • DMA via co-location – Volume of BRL 6,381,361,000.00 and 1,007,081 trades from BRL 5,206,388,000.00 and 856,246 in June;
  • DMA via provider – Volume of BRL 974,556,000.00 and 126,156 trades from BRL 927,919,000.00 and 100,680 in June.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4. In model 1 or traditional DMA, the client accesses the GTS or Mega Bolsa through technological intermediation of a brokerage house. In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. In model 3, the client connects to the system through a direct connection. In model 4 or via co-location, the client installs its own computer within the Exchange’s facilities. 

Notes:

The volumes registered by access modality include both buy and sell sides of a trade.

The volumes by access modality for both the BM&F and the BOVESPA market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

MARKET RESULTS

BM&F Segment July 2011

In July, derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 44,199,125 contracts and BRL 3.35 trillion in volume, compared to 51,023,956 contracts and BRL 3.25 trillion in June. The daily average of contracts traded in the derivatives markets in July was 2,104,720, in contrast to 2,429,712 in June.

BOVESPA Segment July 2011

In July 2011, equity markets (BOVESPA segment) traded BRL 119.63 billion, in 11,016,993 trades, with daily averages of BRL 5.69 billion and 524,619 trades, in comparison to June when total volume reached BRL 124.19 billion, in 10,187,883 trades, with daily averages of BRL 5.91 billion and 485,137 trades.

Filed under: BM&FBOVESPA, Brazil, China, Events, Exchanges, News, Risk Management, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

Mexico exchange lists first REIT after delays

Local pension funds took big stakes

MEXICO CITY, March 21 (Reuters) – Mexico‘s stock exchange listed the country’s first real estate investment trust last week, allowing investors to make big bets on the local property market.

The sale of shares in the first real estate investment trust (REIT) in Mexico came after years of frustration that saw the current deal stumble last month before finally reaching investors.

If Mexico’s REITs prove to be successful, the securities could give local property markets a big capital injection.

Fibra UNO (FUNO11.MX), the maiden REIT named for its acronym in Spanish, was rebuffed in February by investors unwilling to pay the asking price, but the deal was retooled and listed on the local exchange on Thursday.

“Mexico is taking on a new life, becoming more dynamic,” Luis Tellez, head of the Mexican Stock Exchange (BOLSAA.MX), told Reuters shortly after the security was listed.

Mexico financial markets are not as vibrant as those in Brazil where REITs have deep roots but Tellez said this week’s REIT listing was a sign of things to come.

“We are not at the level of Brazil but we are much more dynamic than we were,” he said.

The REIT sold roughly $300 million worth of shares with about a third bought by foreigners and the rest by domestic investors. The February book was roughly split between foreign and domestic investors.

Investors took hold of 43.7 percent of the trust – or 185,385,543 shares valued at 19.5 Mexican pesos each. The fund will hold a basket of 16 properties located in several states across the country.

REITs are seen as an efficient way to inject capital into property markets because they spread the risk and costs of long-term building projects across many tradeable shares.

Mexico’s 15 private pensions and their $115 billion in assets are likely to continue to be a source of funding for REIT investments. For an analysis on the Mexico pension funds and REIT

REIT AND RE-REIT

The local advisors behind the deal, Protego Asesores, went back to the drawing board after the first offer was rejected and eventually enticed investors with a 10 percent discount.

The property owners also agreed to swap some of their properties for equity in the REIT rather than get paid in cash, as another way to smooth the deal, Protego Asesores said.

Turmoil in North Africa and the earthquake in Japan made this a difficult time for the deal but the advisors wanted to conclude it quickly to put an end to 18-months of work.

“We’ve always said that the real estate market in Mexico cannot grow as it should without investment from the private market,” said Augusto Arellano, director of Protego Asesores.

“You cannot have healthy real estate growth if you simply rely on private funding, and we knew that was on our side.”

Source: Reuters 21.03.2011 by Patrick Rucker, additional reporting by Michael O’Boyle, Elinor Comlay

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, , , , , , ,

China: Governor of the Shanghai Stock Exchange (SSE) Geng corrects three Misunderstandings on International Board

Geng Liang, member of the CPPCC National Committee and Governor of the Shanghai Stock Exchange (SSE), clarified ambiguous and incorrect assumptions in development of International Board in Beijing yesterday.

According to Geng, the introduction of International Board would benefit both the development of domestic capital market and the building of Shanghai into an international financial hub and would by no means reduce itself into a global ATM machine as some concerned.

Three Major Positive Effects of Int’l Board

“The decision of listing eligible overseas companies on domestic market, or introducing International Board, is made based on the consensuses reached through the Sino-US strategic economic dialogues and Sino-UK economic and trade dialogues. For China’s capital market, the launch of International Board will bring about benefits in three aspects,” said Geng. First of all, the launch of International Board, a milestone in China’s opening-up of its capital market, offers domestic investors a new channel to purchase shares of large overseas companies with RMB, which is by all means a progress.

Relevant insiders also hold that the opening of International Board is especially conducive to the investment in overseas enterprises by investors who are inexperienced in overseas investment and unfamiliar with foreign law and accounting systems.

Besides, the development of International Board will exert positive influence on the construction of blue-chip market, thus promoting the growth of China’s capital market. “The ultimate goal of the SSE is to build a blue-chip market, which includes high-quality Chinese and foreign listed companies,” added Geng.

Finally, International Board means a lot to building Shanghai into a global financial center. “The listing of overseas companies on domestic market will help pool human resources, capital and institutions to Shanghai,” noted Geng.

No Possibility for “Int’l ATM machine”

As to the concern about misusing International Board as “a global ATM machine”, Geng explained that under the arrangement that free exchange is forbidden under the RMB capital account, the A shares on the future International Board can’t be exchanged freely with the shares issued overseas. Thus, there is no possibility for “a global ATM machine”. Furthermore, “the large international companies, who apply for going listed on the SSE, have already got listed on overseas stock exchanges. Their listing on Chinese market is actually a behavior of refinancing. According to internationally accepted practices, the prices for refinancing generally shouldn’t exceed those on local secondary market.” Therefore, it is not qualified to be “a withdrawing behavior” in terms of scale.

Geng also stated that the launch of International Board would not impact Hong Kong’s position as an international financial center. “The support to Hong Kong market instead of affecting its construction of international financial hub by the return of H shares to A shares is a case in point. During the 20 years’ development of China’s capital market, 60 domestic enterprises went listed in Hong Kong, which vividly proved that the development of domestic capital market boosted Hong Kong market and exchange.”

Substantial Benefits of Int’l Board

Insiders hold that the benefits of initiating International Board are substantial. Apart from those mentioned by Geng, there are at least five more major benefits.

First, the new board will relieve the pressure from foreign exchange reserve, which accords with the development transition of national economy from capital attraction to technical, managerial and human resources introduction. Second, the new board will attract overseas natural resources and energy enterprises to get listed in China, thus helping break their capital barrier towards China’s capital by counteracting the increase in international commodity prices with equity income. Third, the new board provides a channel for Chinese investors to share the income from business conducted by multinational companies in China while changing the situation that multinational companies can only offer job opportunities to Chinese. Fourth, the corporate governance of domestic listed companies will be improved thanks to the model effect of overseas companies listed in China. Last but not least, the new board will help multinational companies integrate themselves with China’ economy to make greater contribution to the development of China’s economy.

Source: MondoVisione, 11.03.2010

Filed under: China, Exchanges, News, , , , , , ,

The bumpy road to the international A-share trading board

While government officials and listing candidates are enthusiastic about the launch of the planned trading board, there are several hurdles that remain unresolved.

Designed to allow overseas companies to list shares on China’s major stock exchange, Shanghai’s highly anticipated international trading board is being heralded as a way to provide a powerful lift to the country’s equity markets in the year of the tiger, but it is turning into a paper tiger, experts say.

The planned board, which has been under discussion for years without tangible progress, was brought into the spotlight again last summer after government officials revealed the Chinese authorities’ determination to launch it. However, key issues such as share sale limits, the use of funds raised through share sales, accounting standards, and listing requirements remain unresolved.

Companies aiming for the international board first need to comply with Chinese accounting standards. However, it is very unrealistic to require companies with assets all over the world to comply with Chinese book-keeping rules and auditing standards, industry experts say.

Every year, the translation of an audit report based on general international standards into the Chinese accounting format could cost a typical company from $5 million to more than $10 million extra — an expense that all cost-conscious financial executives would want to avoid, experts say.

Another issue is that the nation’s corporate and securities laws currently only apply to domestic companies, and Chinese lawmakers are not ready to restructure the legal framework and make it more adaptable for foreign companies that want to offer A-shares.

The preparation of HSBC’s highly anticipated Shanghai share sale is suspended for “at least six months”, sources familiar with the deal said last week, citing technical problems in the listing process.

Also, with China running a top-down, command-and-control economy, the current review and approval procedure for the country’s equity capital market is an obstacle for foreign companies, strategists argue.

“Listings in China receive too much intervention by the government,” said Lou Gang, a China strategist at Morgan Stanley. “Launching an international board would test the current system for launching IPOs (initial public offerings),” he said.

Even so, apart from HSBC, other global players such as Standard Chartered Bank and the New York Stock Exchange have also expressed their enthusiasm for listing on the international trading board.

While overseas issuers are concerned about China’s listing regulations, Chinese investors and regulators are worried the outsiders will soak up too much liquidity from the country’s equity market.

The cautious sentiment among investors is evident in online forums in China, where the planned international trading board is hotly debated. Some say the foreign companies will take advantage of the Shanghai market’s high offering prices and valuations and make use of the stock exchange as an automatic teller machine.

Others warn that HSBC’s listing will absorb funds worth as much as 20 Nanpu Bridges in Shanghai — one of the longest highway bridges in the world, with a total construction cost reaching Rmb820 million ($120 million).

“HSBC will take 20 Nanpu Bridges away from us,” one forum participant wrote. “Don’t let the irrigation fertilise others’ fields,” wrote another.

Analysts suggest the authorities should require foreign companies to re-invest the proceeds from their share sales exclusively in China or give approval only to red-chip companies, which are registered overseas but with most of their assets and operations on the Chinese mainland.

Generally, regulators and market observers concur that the introduction of foreign company listings is a must and will help improve the country’s equity markets and accelerate the process of making the Chinese yuan freely convertible.

“Foreign company listings will set a good example for domestic companies in China,” said Wei Sun, Morgan Stanley’s China CEO.

Tu Guangshao, Shanghai’s vice mayor and a former vice-chairman of the China Securities Regulatory Commission, said at the Asian Financial Forum in Hong Kong last month that the municipal government strives to build the city into an international financial centre and that the creation of the planned board is in progress.

The international trading board was first brought to the table by Unilever Company in 2000 when the US retailer of personal care products expressed its interest in an A-share listing in a bid to strengthen its network and brand-name penetration in China. Discussion about the board has been under way ever since, but a concrete plan has yet to be made.

Commerce minister Chen Deming said at an investment conference in Xiamen last September that China will certainly allow listings by qualified foreign invested companies on the mainland stock exchange.

PricewaterhouseCoopers predicted last month that the board will start trading in the second half of this year. The new board may help the Shanghai Stock Exchange (SSE) to raise up to Rmb300 billion ($44 billion) through IPOs this year, overtaking its Hong Kong counterpart, which is forecast to raise HK$300 billion ($39 billion), the international accounting firm said.

Source: FinanceAsia.com,19.02.2010 by Lillian Liu

Filed under: China, Exchanges, News, , , , , , ,

HKEx And Shanghai Stock Exchange Agree On New Cooperation Initiatives

Hong Kong Exchanges and Clearing Limited (HKEx) and Shanghai Stock Exchange (SSE) have met today to discuss the Closer Cooperation Agreement they signed in January of last year.  The agreement commits the two organisations to work together more closely towards the common goals of mutual prosperity and contributing to the greater development of China’s economy.

“Through cooperation and exchanges with our friends at SSE, we can learn more about the behaviour and needs of Mainland investors and how we can further support the QDII (Qualified Domestic Institutional Investor) scheme,” said HKEx Chairman Ronald Arculli.  “We can also learn from each other about the market dynamics created by the growth and development of SSE and HKEx, and the latest market trends in the Mainland and Hong Kong.

“According to an old Chinese saying, a single tree cannot make a forest,” Mr Arculli added.  “Jointly with our Mainland counterparts, we can accelerate China’s growth and financial development in a prudent manner.”

As a result of recent discussions, HKEx’s Listing Division and SSE’s Company Management Department will establish a mechanism for regular exchanges, in order to more effectively regulate companies and securities listed in both Shanghai and Hong Kong and better protect shareholder interests.  Views will be exchanged every two months, with the focus on operational issues, including information disclosure by listed issuers.  The two organisations will take turns organising the meetings.

HKEx and SSE also agreed to strengthen exchanges and cooperation on information technology that supports business development.  “The Shanghai and Hong Kong exchanges have their own technological advantages.  There is ample room for the technology personnel of both organisations to share expertise, and explore possible ways to develop our respective technology support infrastructure to accommodate further and broader cooperation between the two markets,” HKEx Chief Executive Charles Li said.

In addition, HKEx and SSE have agreed to seek further cooperation in product development and to hold a forum on listed structure products later this year.

Since signing the cooperation agreement in January last year, HKEx and SSE have also started a market data collaboration programme, shared information on the development of Exchange Traded Funds and other products, and arranged for HKEx executives to train at SSE and vice versa.

HKEx believes its cooperation with SSE strengthens the two organisations’ positions in today’s rapidly changing financial market environment.

The management of the SSE and HKEx met in Hong Kong on 21 January 2010.  The following joint statement was issued after the meeting.

1. The management of the SSE and HKEx exchanged views and discussed their experiences regarding information sharing and cooperation in regulating companies and securities listed in both markets, market infrastructure development, product development, information service development, personnel exchanges, and so forth.

2. Both sides agreed to strengthen information sharing and cooperation in regulating companies and securities listed in both markets.  With an increase in A+H share listings, as well as the development of Exchange Traded Funds (ETFs) on A shares and ETFs on Hong Kong stocks, closer ties between the Shanghai and Hong Kong markets have been fostered.  The SSE’s Company Management Department and HKEx’s Listing Division will set up a mechanism for regular exchanges, in order to more effectively regulate enterprises and securities listed in both markets and better protect shareholder interests.  An exchange of views will be held every two months, focusing on the operational issues in the regulation of securities listed in both markets and related information disclosure issues.  The two organisations will take turns organising the meeting.  The same mechanism may be extended to other departments, if proved effective.

3. Both sides agreed to strengthen exchanges and cooperation regarding technology that supports business development.  Information technology development, particularly the development of trading and information dissemination systems, is crucial to the stock exchange business.  Exchanges and cooperation on technology issues between the two organisations can deepen mutual understanding of the merits of each market’s infrastructure and help further the markets’ business development.  The Shanghai and Hong Kong exchanges have their own technological advantages.  The SSE’s new generation trading system has cutting edge technology and advanced capacity, while HKEx’s systems support trading, clearing and information dissemination for a variety of products.  There is ample room for the technology personnel of both organisations to share expertise, and explore possible ways to develop the respective technology support infrastructure to accommodate further and broader cooperation between the two markets.

4. Both sides agreed to strengthen cooperation in respect of the development of products.  ETFs have become the starting point of the two organisations’ cooperation on product development. At present, several Mainland fund management companies are actively making preparations for the issue of ETFs related to Hong Kong stocks.  It is hoped future cooperation on ETFs will be extended on a gradual basis to the development of ETFs on bonds and gold, as well as cross listings.  Besides ETFs, the two organisations may seek further cooperation in products such as securitised assets, warrants, Callable Bull/Bear Contracts and options.  The two organisations jointly participated in a forum on ETF market development last year and agreed to hold a forum in similar format on listed structured products later this year.

5. Both organisations agreed to deepen cooperation in the development of information products.  For example, cooperation in compiling an index comprising securities listed in Shanghai and Hong Kong may be explored to increase the Shanghai and Hong Kong stock exchanges’ influence in the global market.

6. Both organisations support continued exchanges and training involving their personnel.  The management of the two organisations agreed to meet twice a year to review the progress of exchanges and training, and work out plans for the next year’s exchanges and training.  The two organisations will take turns organising the meeting.  Training may take the form of meetings during which each side will be briefed on the other side’s market development, or short educational visits to each other’s offices.  Last year, the two organisations arranged for their executives to train in each other’s related departments, and agreed to continue the activities.

Source: MondoVision, 21.01.2010

Filed under: China, Data Management, Exchanges, Hong Kong, Market Data, News, Reference Data, Risk Management, , , , , , , , , , , , , , , , ,

Mexican IPC Index ETF “iSHARES NAFTRAC” listed on Spain’s LATIBEX

BGI IShares listed it’s Mexican ETF (TRAC) NAFTRAC on the Spanish LATIBEX exchange on November 19th, 2009.

This is the first time a Mexican traded TRAC is listed abroad. It marks a significant recognition of the Mexican financial markets and in particular for BMV – Bolsa Mexicana de Valores (BMV) the Mexican Stock Exchange in it’s international expansion.

The NAFTRAC tracks the top 35 traded Mexican stocks according to the BMV IPC index. The TRAC was listed on April 16th, 2002 and was the first such instrument to be listed in Mexico and Latin America, and has become one of the most traded instruments in Mexico’s Stock Exchange.

Barclays Global Investors (BGI) Mexico, is underwriting and listing the TRAC on LATIBEX in Madrid, Spain.

Note: TRAC (Títulos Referenciados a Acciones) are the Mexican equivalent for ETF’s traded on the stock exchange and issued by BGI IShare Mexico

Note: BMV IPC tracks companies of global influence like WalMex, FEMSA (CocaCola), Telmex, Modelo, CEMEX, Bimbo, AMX, Bolsa and others with global operations and revenues. See latest performance of IPC here.

Source: BMV, 19.11.2009
Summarized translation by FiNETIK from BMV press release 19.11.2009

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, Services, , , , , , , , , , , , , , , ,

Hong Kong: First A-share Industry Sector ETFs to Debut on HKEx

Hong Kong’s Exchange Traded Fund (ETF) market further expands with a series of five Mainland A-share industry sector ETFs setting to debut on Wednesday, 18 November on the Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx).

The new Mainland A-share index ETFs are:

Stock Code Name of ETF Benchmark index
2846 iShares CSI 300 A-Share Index ETF CSI 300 Index
3050 iShares CSI A-Share Energy Index ETF CSI 300 Energy Index
3039 iShares CSI A-Share Materials Index ETF CSI 300 Materials Index
2829 iShares CSI A-Share Financials Index ETF CSI 300 Financials Index
3006 iShares CSI A-Share Infrastructure Index ETF CSI 300 Infrastructure Index

With the listing of these five new ETFs, there will be a total of eight ETFs on Mainland A-share indices listed on the Exchange, and HKEx will be the first exchange with Mainland A-share industry sector ETFs.

All ETFs listed on the Exchange, including these five new iShares listings, are designated for market making and for short selling with tick rule exemption.  The market makers for these five ETFs are Citigroup Global Markets Asia Limited, Credit Suisse Securities (Hong Kong) Limited and UBS Securities Hong Kong Limited.

On 18 November, the Exchange will have listed 42 ETFs.  There are eight ETFs on Mainland A-share indices, seven on Hong Kong equity indices, 22 on other regional and international equity indices, two on commodities and three on bonds and money markets.

The three other Mainland A-share index ETFs are:

Stock Code Name of ETF Benchmark index
2823 iShares FTSE/Xinhua A50 China Index ETF FTSE/Xinhua China A50 Index
2827 W.I.S.E. – CSI 300 China Tracker CSI 300 Index
3024 W.I.S.E. – SSE50 China Tracker SSE50 Index

Investors should note that all A-share ETFs use derivative instruments to synthetically replicate the performance of the underlying benchmarks.  These ETFs are subject to counterparty risk of the derivative instruments’ issuers and may suffer losses if such issuers default or fail to honour their contractual commitments. For a better understanding of the risks involved, investors are advised to read the ETFs’ prospectuses in full prior to making any investment decisions.  Information on the various risks of ETFs and their structures is available on the HKEx website.

Source: MondoVisione 17.11.2009

Filed under: Asia, China, Exchanges, Hong Kong, News, , , , , , , , , , ,

KRX Listing 10 additional Stock Futures on Dec 14, 2009

10 additional single stock futures will be listed on Dec 14, 2009 since the Korea Exchange introduced 15 single stock futures for the first time on May 6, 2008.

Of the stocks that satisfy the selection criteria related to the market share within the industry group and liquidity, the 10 single stock futures to be listed in December have been chosen by taking into consideration the inputs of securities companies, including how frequently the underlying stock has been used in developing equity linked products such as ELWs, ELSs and single stock options.

The issues selected are:

  • Kia Motors(Motor Vehicle),
  • Daewoo Securities(Securities),
  • Korean Air(Transport),
  • Doosan Infracore(Machinery),
  • Samsung C&T(Distribution),
  • Hynix(Semiconductor),
  • Hyundai Steel(Steel),
  • GSE&C(Construction),
  • NHN(Service),
  • SK Energy(Chemical)

As a result, after December 14, 2009, total of 25 single stock futures will be listed on the Korea Exchange.

It is expected that listing of these additional single stock futures will further facilitate new trading strategies to meet the demand of foreign and domestic market participants.

Source:MondoVisione, 17.11.2009

Filed under: Asia, Exchanges, Korea, News, , , , ,

China: ChiNext less then 10% of Accounts active

About 9.6 million investors have opened trading accounts on ChiNext, the growth enterprise market that launched on Oct. 30, but only 920,000 have started trading, Yao Gang, vice chairman of the China Securities Regulatory Commission, said on Friday. Many account holders are still cautious about investing, Yao said during a broadcast on the central government website.

Source: Caijing, 09.11.2009

Filed under: Asia, China, Exchanges, News, , , , , ,

Tokyo Stock Exchange lists Indian ETF – S&P CNX Nifty linked ETF

Today, the Tokyo Stock Exchange approved the listing of the “NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund” managed by Nomura Asset Management Co., Ltd.. The ETF is planned to be listed on Thursday, November 26, 2009.

This is the first ETF linked to Indian stocks to be listed on markets in Japan. The “S&P CNX Nifty Index” to which the ETF is linked is comprised of the 50 premier issues of the National Stock Exchange of India.

Code 1678 (ISIN JP3047100007)
Name NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund
Fund Administrator Nomura Asset Management
Listing Date November 26, 2009
Trading Unit 100 units
Underlying Index S&P CNX Nifty Index

TSE entered into a memorandum of understanding with the National Stock Exchange of India on October 15, 2006. Through this ETF, TSE hopes to supply investors with better access to the Indian securities market and contribute to the development of the markets in both of our countries.

With this listing there will be a total of 69 ETFs listed on the Tokyo market, bringing us closer to the goal of 100 listed ETFs by fiscal year 2010, as laid out in the Medium-Term Management Plan. TSE will continue working to diversify the ETF market and improve the convenience of our market for all investors.

Additional ETF’s listed in Tokyo include Brazil’s IBOVESPA, China A Share CSI300 as well as  ETC (Exchange Trade Commodities) like Gold, Silver, Platinum and Palladium. See also TSE lists Brazilian ETF.

Tokyo Stock Exchange officel ETF site
ETFs on TSE November 2009 (.doc and .cvs)

Source: Tokyo Stock Exchange 06.11.2009

Filed under: Asia, Exchanges, India, Japan, News, , , , , , , , , , , , , , , , , , , , , , , , , ,

China: SZSE – ChiNext Creates 13 Billionaires on Paper on First Trading Day

China’s GEM market has given birth to more than a dozen billionaires due to extraordinary enthusiasm of investors.

Strong gains on the opening day of China’s Growth Enterprise Market, the Nasdaq-style board for high-tech startups, have created 13 paper billionaires, Caijing reported, citing calculations based on their declared holdings in the IPO companies.

The biggest individual shareholder in Lepu Medical Technology (Beijing) Co Ltd. (SZSE 300003), general manager Pu Zhongjie, saw the value of his 14.9 percent stake soar to 3.8 billion yuan (US$556 million). The stock rose nearly 119 percent to 63.4 yuan.

The surge in stocks also saw the value of 116 investors’ holdings rise to more than 100 million yuan, Caijing has calculated. The total includes the 13 billionaires.

The other big gainers on the first day included Wang Zhongjun, chairman of Huayi Brothers Media Corp. (SZSE 300027), whose holding of 26.1 percent was estimated to be worth 3.1 billion yuan at the close of trading. The stock rose nearly 148 percent to 70.8 yuan.

Chairman Wang Ning and general manager Li Li of Beijing Ultrapower Software Co Ltd. (SZSE 300002) saw the value of their holdings rise to 1.8 billion yuan each after the company’s stock rose 77.4 percent to 102.9 yuan. Wang and Li each own 13.9 percent of the company.

The so-called “ChiNext” market, the brand GEM is marketed under, began trading at 9:30 am on Friday. Gains by the first 28 companies to list ranged from 76 to 210 percent at the close of the first day.

However, due to China’s volatile stock market and a lock-up period ranging from one year to three years, the wealth of today’s millionaires could shrink substantially. It is very hard to predict how many of them still possess seven-digit wealth in a few years.

Some Brokers Gain Big as ChiNext Issues Soar
Several brokerage firms appear to have made substantial profits from investments in companies listed on ChiNext, the new growth enterprise board that opened last Friday.
According to the ChiNext companies’ shareholders list, some brokerages invested in the firms before the initial public offerings. The China Securities Regulatory Commission approved applications by 15 brokers to invest directly in the companies ahead of the IPOs. On Friday, the companies saw their shares skyrocket, with the 28 stocks registering gains of 75.84 to 209.73 percent.

Click here for pre-trading news.

Source:Caijing.com.cn, 02.11.2009 by Shen Hu


Filed under: Asia, China, Exchanges, News, , , , , , , , , ,

Shenzhen ChiNext GEM Offline Share Subscriptions Attract 217 Mutual Funds

Offline share subscriptions for the first 28 companies to list on Shenzhen’s Growth Enterprise Market attracted 217 mutual funds. An average of 34 funds participated in each stock listing on the so-called “ChiNext” market, according to data obtained by Caijing.

The biggest single investor was the ICBCCS Enhanced Income Bond Fund, run by ICBC Credit Suisse Asset Management Co., which bought stakes in 23 of the 28 companies.
Full article in Chinese: http://www.caijing.com.cn/2009-10-28/110296927.html

» The GEM, which has been branded “ChiNext,” was officially launched Oct. 23, with the first batch of 28 listed companies to commence trading on Friday 30.10.2009

Source: Caijing, 29.10.2009

Filed under: Asia, China, Exchanges, News, , , , , , , , ,