Z-Ben Advisors

Today’s China Top Five: 💡 𝗛𝗶𝗴𝗵-𝗟𝗲𝘃𝗲𝗹 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 | 𝗜𝗻𝘃𝗲𝘀𝗰𝗼 He Lifeng, Vice Premier of the State Council, met with Andrew Schlossberg, President and CEO of Invesco Ltd., on November 12 in Beijing. He emphasized China's ongoing efforts to implement the decisions from the Third Plenum, focusing on deepening capital market reforms and expanding institutional openness in the financial sector. 💡 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝘃𝘀. 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 | 𝗛𝗼𝘂𝘀𝗲𝗵𝗼𝗹𝗱 𝗗𝗲𝗽𝗼𝘀𝗶𝘁𝘀 In October, Chinese household deposits fell by RMB570bn, reversing the growth trend seen in previous months. This shift is attributed to increased investment in equities and asset management products, indicating rising risk appetite among investors. A significant portion of the withdrawn deposits moved to non-bank financial institutions, such as brokerages, funds, and trusts. 💡 𝗕𝗮𝗻𝗸 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 | 𝗔𝗨𝗠 Total bank wealth management assets reached approximately RMB29.7tn by the end of October, growing only RMB360bn compared to the previous month. From late September, as the stock market rebounded and bond market adjustments led to losses in fixed-income products, many investors shifted their funds from deposits and low-risk financial products towards equities. 💡 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗖𝗵𝗮𝗻𝗴𝗲 | 𝗖𝗜𝗖  On November 13, the Central Organization Department appointed Zhang Qingsong as the new Party Secretary of China Investment Corporation, replacing Peng Chun. Zhang has held key positions such as Vice President of PBoC, President of Export-Import Bank of China, and President of ABC. 💡 𝗔𝗰𝘁𝗶𝘃𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 | 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 Large active equity funds have shown notable performance improvement since late September, driven by a significant rise in the A-share market. As of November 11, 28 active equity funds with over RMB10bn in assets saw strong gains, with 15 funds posting returns above 10% for the year.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗡𝗲𝘄 𝗦𝗵𝗮𝗿𝗲𝗰𝗹𝗮𝘀𝘀𝗲𝘀 | 𝗙𝗠𝗖𝘀 Since the start of November, eight fund companies, including Guotai, Tianhong and ChinaAMC, have added new share classes to over 30 products. Guotai added E-class shares that do not charge subscription fees but include a 0.30% annual sales service fee. 💡 𝗣𝗕𝗼𝗖 𝗪𝗼𝗿𝗸 𝗥𝗲𝗽𝗼𝗿𝘁 | 𝗡𝗣𝗖 PBoC Governor Pan Gongsheng emphasized maintaining a supportive monetary policy stance, increasing the intensity and precision of monetary policy adjustments to bolster economic stability. He also expressed a desire to improve policy tools aimed at addressing abnormal stock market volatility. 💡 𝗙𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲𝗿𝘀 | 𝗖𝗦𝗥𝗖 Local securities regulators have issued notices to investment advisory firms, requiring comprehensive management of corporate and employee social media accounts and compliance checks on live-stream content, with a strict ban on stock recommendations during live sessions. 💡 𝗡𝗲𝘄 𝗟𝗮𝘂𝗻𝗰𝗵 | 𝗖𝗦𝗜 𝗔𝟱𝟬𝟬  On November 11, E Fund Management Co.,LTD.'s CSI A500 Index Fund was officially established, having raised RMB7.987bn. It became the second largest among CSI A500-linked funds, following the GF CSI A500 Index Fund. 💡 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 | 𝗕𝗮𝗻𝗸𝘀 China's six largest state-owned banks, including ICBC and CCB, announced a reduction in deposit rates, dropping below 2%. This marks the second cut this year and the sixth since September 2022. Many smaller banks followed suit, narrowing the interest rate gap with major banks.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

Today’s China Top Five: 💡 𝗣𝗿𝗼𝗽𝗿𝗶𝗲𝘁𝗮𝗿𝘆 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 | 𝗙𝗠𝗖𝘀, 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗙𝘂𝗻𝗱𝘀 Fund management companies and private fund managers have made proprietary investments of almost RMB3bn this year, signaling confidence in the future performance of the A-share market. Fund managers have particularly favored CSI A 500 index products. 💡 𝗙𝘂𝗻𝗱 𝗦𝗮𝗹𝗲𝘀 | 𝗔 𝟱𝟬𝟬 𝗘𝗧𝗙𝘀 Following the recent policy relaxation in September, distribution platforms have seen significant growth among younger investors, with the CSI A 500 ETFs proving popular among the cohort. Major banks have introduced significant fee discounts for fund purchases, offering rates as low as 10% of the standard fee to attract new clients. 💡 𝗠𝗼𝗻𝗲𝘆 𝗦𝘂𝗽𝗽𝗹𝘆 𝗗𝗮𝘁𝗮 | 𝗣𝗕𝗼𝗖 PBoC is actively working on a plan to revise how it calculates money supply statistics. The revisions will aim to improve the accuracy and relevancy of the central bank’s economic measurements. 💡 𝗘𝗧𝗙 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻𝘀 | 𝗕𝗿𝗼𝗸𝗲𝗿𝘀 Domestic brokers are increasingly hosting ETF competitions to promote ETF investments and boost customer engagement. This has resulted in higher trading volumes, improved customer retention and a surge in new account openings – Haitong Securities has seen a fivefold increase in new account registrations this year. 💡 𝗗𝗲𝗯𝘁 𝗦𝘄𝗮𝗽 | 𝗠𝗼𝗙 On November 8, MoF announced a package which will raise local governments’ debt quota by RMB6tr over the next three years, with the new funds to be used to reduce hidden debts. The policies will aim to reduce total local government hidden debt from RMB14.3tr to RMB2.3tr by 2028.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

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