No major outflow from A-share ETFs
Despite the yuan devaluation, no major outflows have been reported from RQFII ETFs. iShares FTSE A50, the largest A-share ETF and the most anemic among all A-share ETFs, lost HK$10bn ($1.29bn), or 2.4% of its AUM since the beginning of the month.
The size of the top two RQFII ETFs by AUM, managed by CSOP and China AMC, dwindled to 30 million yuan by August 20.
Shanghai Securities Times, August 21
IPO registration unlikely to happen this year
Registration of IPOs is unlikely to happen this year as China’s congress postponed the revision of the securities law. Currently companies need the approval from the China Securities Regulatory Commission before going public. IPOs were halted by the CSRC after the stock rout in late June and have yet to be resumed.
Caixin.com, August 20
Equity funds yield negative in July
Fund sales in July dropped to a 13-month low of 22.6bn yuan ($3.5bn) as 99% of equity funds yielded negative.
The worst performers saw their net asset value shrink more than 30% in July, when the Shanghai market was down 14.3%. In the month, 31 new products prolonged their fund-raising period but still struggled to meet the sales target.
By the end of July, net values of all equity funds dropped 26.9% from a month ago to 1.3trn yuan, while net values of money market funds grew 33.6% to 3.22trn yuan and bond funds grew 12.4% to 40.6bn yuan.
Time Weekly, August 18
QFIIs increase exposure to A-shares
Major QFIIs like Norges Bank and Kuwait Investment Authority raised their exposure to China A-shares in the second quarter.
Norges Bank is among the top 10 shareholders in 11 companies, after increasing its total A-share holdings to 2.3bn yuan at the end of June.
Kuwait Investment Authority raised its A-share holdings to 1.3bn yuan at the end of June to be the top 10 shareholder in 10 companies.
NHU, a producer of pharmaceutical chemicals and food additives based in Zhejiang in eastern China, is a favourite of many QFII users. The company’s top 10 shareholders consist of six QFII licencees, including Bill & Melinda Gates Foundation Trust, British Columbia Investment Management Corporation and SUVA.
In July, QFII holders opened 29 A-share trading accounts, a high this year, and RQFII holders opened 57 accounts, also a new high.
China Fund, August 17
MRF application accepted for 12 HK funds
The CSRC said it had accepted applications for the Mutual Recognition of Funds scheme from 12 Hong Kong-domiciled funds, without identifying the applicants. According to a report by 21st Century Business Herald, about 16 China-domiciled funds have submitted their applications to Hong Kong’s Securities and Futures Commission for MRF approval.
csrc.gov.cn, August 14