The long awaited “Bond Connect” program linking the Hong Kong and mainland Chinese markets has finally launched. Even though it was initially received with warm welcome by investors, some experts believe that on its own it won’t be enough to make global players give the local Chinese markets the desired recognition.
City Developments Limited (CDL), the Singapore-listed real estate giant with a global presence spanning 97 locations in 26 countries, has been praised for its sustainability efforts, which place it top among Singapore corporates in the Global 100 Most Sustainable Corporations in the World 2017 rankings. We speak to the company’s Chief Sustainability Officer Esther An about challenges associated with issuing green instruments in the region and CDL’s strategy going forward.
The state-owned company, which finances and promotes power sector projects in India, successfully launched its inaugural green bond, becoming the first Indian public sector corporate to issue USD-denominated “green” debt and supporting the central government’s sustainability drive.
In constitution and performance, indexes are in large part designed to act as a mirror to the markets they reflect, with investors largely vying for ways to exploit information deficiencies and fleeting hunches to beat them. But in emerging markets, there is a huge discrepancy between the assets that compose these indexes and the actual asset class, raising fundamental questions about the purpose these tools serve.
Strengthening the Reserve Bank of India’s hand in resolving the country’s US$150bn distressed asset problem is a step in the right direction, but anyone looking for a quick-fix is in for a rude awakening: it’s going to get worse before it gets better, analysts suggest.
A weak dollar and stifling policies at home are making the Chinese corporate sector look increasingly towards dollar funding in 2017.
For a country facing several years of economic pressure, Malaysia showed tremendous discipline in eliminating fiscal imbalances and managing the country’s volatile currency. But for Prime Minister Najib Razak, once a focal point of a massive scandal involving state-run wealth fund 1Malaysia Development Bhd (1MDB), winning back the country’s hard earned reputation and credibility will be difficult at best.
China is making good on its promise of opening up its onshore markets to foreign investors, which only own about 2% of the country’s domestic bonds. With broad index inclusion on the horizon and the introduction of new rules aimed at easing investor access to the market paying off, analysts are turning their attention to concerns over monetary tightening and slower than anticipated growth for 2017.
India’s efforts to curtail the shadow economy and go cashless, coupled with fresh measures introduced by the country’s securities regulator and contained within the latest government budget, are likely to give a big boost to India’s bond market in 2017 despite a number of headwinds that could continue to challenge emerging markets. The development of a viable secondary market could be within reach.
The real estate sector in China is set to cool off in 2017 after the Chinese government enacted a series of measures to prevent a bubble following skyrocketing housing prices seen over the past two years.
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