Magazine issues » December 2019

Clearstream Event: Three of a kind

SG_HK_SHFunds Global Asia reports from Clearstream’s Annual Asia Summit, held in Singapore, Hong Kong and Shanghai. Clearstream’s events bring together participants from its business investment funds, global custody and securities financing universe, giving business partners a chance to share experiences and develop a better understanding of the market. Tilman Fechter, head of banking, funding and financing at Clearstream and a member of the firm’s executive board, hosted the three events, which took place from October 21-25. Each saw a presentation from Clearstream’s product segment, comprising:
  • Thilo Derenbach, executive director, head of European custody product, on European custody and opportunities for all customers;
  • Thuy-Van Nguyen, vice president, global markets, on accessing international capital markets in a changing global landscape; and
  • Fechter himself on how to comply with regulatory changes impacting cash management, credit, securities lending and collateral and staying competitive.
The Singapore event at the Fullerton Hotel included a keynote address on China from Tommy Xie, head of Greater China research at OCBC Bank. In Hong Kong, Aidan Yao, senior emerging Asia economist at Axa Investment Managers, delivered a second keynote speech on China, its economic model, future growth and the outlook for the world’s markets. Shanghai’s Westin Bund Center played host to two keynote addresses. The first, from Ming Qian, senior vice president, global business development department at the Shanghai Stock Exchange, explored new initiatives between that exchange and Deutsche Borse. Qian looked at the D-Shares class of Chinese shares listed in Frankfurt, as well as the mutual listing of depositary receipts in the form of GDRs [Global Depositary Receipts] and CDRs [Chinese Depositary Receipts]. Growth sectors
Next came an introduction to the Shanghai Stock Exchange’s STAR Market [the Science and Technology Innovation Board] from Weiyu Xu, vice president of the exchange’s global business development department. Xu examined the new areas of listing, technologies, renewables and biodynamics – the new Chinese growth sectors. Fei Tao, lead relationship manager at the Collateral Management Center, China Central Depository & Clearing, spoke about renminbi bond collateral management and cross-border applications in Shanghai. Zhaojia Zhang, senior manager at the risk management department of Shanghai Clearing House, discussed the China Credit Bond Index development and innovation, and Mezhgan Qabool, Eurex’s head of market development for Asia-Pacific, gave a presentation on key market developments. At all three events, visitors and guests alike came away with a better understanding of the business opportunities in a changing market and regulatory landscape. Preview
In the funds area, Dr Bob Currie, research editor of Funds Europe and Funds Global Asia, presented the findings from the joint survey with Clearstream on ‘Fund Platforms and Distribution of Investment Funds’. This was a preview of the results, available from December 2019. In each location, the results of the survey formed the basis of a panel debate chaired by Funds Europe publisher Alan Chalmers. In attendance in Singapore were Margaret Harwood-Jones, managing director, global head, securities services, transaction banking at Standard Chartered Bank; Steven Billiet, chief executive at JPMorgan Asset Management (Singapore); Armin Choksey, partner – asset management at PwC; and Stanley Poon, head of sales for Asia, Middle East and Africa, investment funds services at Clearstream Banking. In Hong Kong, experts included King Lun Au, president at Value Partners; Rex Lo, managing director, business development at BEA Union Investment Management; Stewart Aldcroft, senior adviser, Asian fund management industry, managing director at Citi Markets & Securities Services and chairman at Cititrust; and Clearstream Banking’s Poon. The line-up in Shanghai included Poon, Currie and Patrick Liu, chief executive for China at Neuberger Berman. While looking at the global market, it was noted that all of these individual markets had unique characteristics, be it concentration on retail channels, platforms or wealth managers. The general feeling is that the number of platforms will grow, but that there will also be consolidation. In addition, technology companies and new entrants pose a general threat. The message as far as attendees were concerned was to expect change – even if we don’t know what it will be. The good news is that all of the panellists are optimistic about the future. The full results of the survey will be published by both Clearstream and Funds Europe and available online from December 2019. ©2019 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.


Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Why rising demand for healthcare is creating investment opportunities in China

rising demand, healthcare, investment, opportunities, China, Robert St Clair, Investment Strategy, Fullerton Fund ManagementRobert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.

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