{"id":11944,"date":"2015-10-12T14:50:15","date_gmt":"2015-10-12T06:50:15","guid":{"rendered":"http:\/\/westchina.austcham.org\/?p=11944"},"modified":"2015-10-30T16:12:00","modified_gmt":"2015-10-30T08:12:00","slug":"financial-services-talking-points-12-10-2015","status":"publish","type":"post","link":"https:\/\/westchina.austcham.org\/?p=11944","title":{"rendered":"Financial Services Talking Points 12-10-2015"},"content":{"rendered":"

\"fin\"<\/a><\/p>\n

Date: <\/strong>Monday, 12th October 2015<\/em><\/p>\n

 <\/p>\n

Economic and market highlights (English)<\/strong><\/a><\/span><\/p>\n

Source: Macquarie Group, 02 October 2015<\/em><\/p>\n

Macquarie forecasts that the first Federal Reserve interest rate rise will occur in December 2015. Volatility has receded from highs reached in August, but remains elevated. Developed markets lost ground, with the US and Australia shedding around 3%, exceeded by losses in European markets of between 4% and 6%. The deflationary pressures of persistently weak commodities have been a prominent macroeconomic theme since a rather dramatic sell-off commenced in mid-2014.<\/p>\n

 <\/p>\n

The top six reasons the RBA should not cut rates (English)<\/strong><\/a><\/span><\/p>\n

Source: NAB, 05th<\/sup> October 2015<\/em><\/p>\n

    \n
  1. Improvement in the non-mining economy.<\/li>\n
  2. Mining investment, business investment and commodity prices are not interest sensitive.<\/li>\n
  3. Still lower interest rates would boost the rate sensitive sectors of the economy and increase financial risks.<\/li>\n
  4. Rates are already very low and the full impact of the cuts to 2% in H1 2015 is still to flow through.<\/li>\n
  5. The $A is now more clearly supporting growth.<\/li>\n
  6. The RBA only has 200bps of rate cuts left<\/li>\n<\/ol>\n

     <\/p>\n

    SAFE released 41.8 billion RMB to assist A-share (Chinese)<\/strong><\/a><\/span><\/p>\n

    Source: China daily, 08 October 2015<\/em><\/p>\n

    During September, SAFE accelerated the licensing process of QFII and RQDII, with quota of 40.6 billion and 11 billion specifically. Since analysts believed it is a great opportunity for value investors to open a position, the money is supposed to be in the investing pool quite soon. In addition, after waiting for almost 2 months, fund managers are seeking opportunities in the securities market as well.<\/p>\n

     <\/p>\n

    This Analyst Says China’s Stock Rally-to-Rout Is About to Repeat (English)<\/strong><\/a><\/span><\/p>\n

    Source: Bloomberg, 12 October 2015<\/em><\/p>\n

    In August, Thomas Schroeder correctly predicted that a rebound in Chinese stocks wouldn\u2019t last, whereas now he offers that the benchmark equity gauge will plummet to new lows as a bear-market rally fails. The Shanghai Composite Index will climb to 4,100 in the next three months before slumping as much as 41 percent to 2,400 in early 2016.<\/p>\n

    \u00a0<\/em><\/strong><\/p>\n

    Other Financial Services Working Group Members\u2019 market updates<\/em><\/strong>:<\/strong><\/p>\n

    Australian Markets Weekly<\/a><\/span> by National Australia Bank<\/p>\n

    Australian Economic Perspective<\/a><\/span> by Commonwealth Bank<\/p>\n

    Australian Economic Reports<\/a><\/span> by Westpac Banking Corporation<\/p>\n

    ANZ Bluenotes<\/a><\/span> by ANZ Bank<\/p>\n

    Market Insights<\/a><\/span> by Macquarie Group<\/p>\n

     <\/p>\n

    This brief\u00a0summarises a range of publicly available news articles in both Chinese and English and AustCham\u00a0takes no responsibility for the\u00a0accuracy of the information in these articles. In\u00a0addition, the views and opinions reflected in these articles\u00a0are\u00a0not necessarily representative of AustCham.<\/em><\/p>\n

    \u00a0<\/em><\/p>\n

    AustCham Beijing\u2019s Financial Services Working Group is chaired by Zhongmin Zha (Westpac Banking Corporation). For more details on how to get involved in the AustCham Beijing Financial Services Working Group, please contact <\/em>Andrew Britz<\/em><\/a><\/span><\/strong>.<\/em><\/p>\n

     <\/p>\n

    Click here<\/a><\/strong><\/span> to get a PDF version.<\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Date: Monday, 12th October 2015   Economic and market highlights (English) Source: Macquarie Group, 02 October 2015 Macquarie forecasts that the first Federal Reserve interest rate rise will occur in …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[32,26,33],"tags":[],"class_list":["post-11944","post","type-post","status-publish","format-standard","hentry","category-financial-services","category-news","category-others"],"acf":[],"_links":{"self":[{"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/posts\/11944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11944"}],"version-history":[{"count":2,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/posts\/11944\/revisions"}],"predecessor-version":[{"id":12006,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=\/wp\/v2\/posts\/11944\/revisions\/12006"}],"wp:attachment":[{"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/westchina.austcham.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}