Financial Policy
  • S&P/JPX JGB VIX update - January 2019

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 15 Feb 2019
    Views: 1
    Downloads: 0
    After a turbulent year-end panic that sent the S&P/JPX JGB VIX to highs not seen since last summer, global sentiment seemed to improve in the first month of 2019, indicated by the index's gradual retreat. 
  • ASEAN green financial instrument guide

    Source: Climate Bonds Initiative
    Date Submitted: 11 Feb 2019
    Views: 10
    Downloads: 1
    Several financial instruments and mechanisms are available for public and private entities in ASEAN that look to fund green assets through equity, debt and partnerships. This step-by-step guide gives an overview of the financing process and its implementation.
  • Indian budget, macro and market outlook

    Source: Navneet Munot
    Date Submitted: 10 Feb 2019
    Views: 8
    Downloads: 1
    From the equity market perspective, India's Interim Budget 2019 can be seen as a positive event, given the continued focus on income enhancing measures. Structural reforms undertaken over the last few years should start yielding returns over a medium term.
  • S&P/JPX JGB VIX update - December 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 23 Jan 2019
    Views: 23
    Downloads: 1
    In December 2018, the S&P/JPX JGB VIX rose to levels not seen since July 2018, as global risk aversion gripped Japan’s bond markets. Investors rushed to safe haven assets, which sent global bond yields tumbling lower.
  • The abnormal return around cross-listing between emerging and developed markets

    Source: Fan John Zhang, Jun Chen, Bart Frijns, Alireza Tourani-Rad
    Date Submitted: 17 Jan 2019
    Views: 475
    Downloads: 12
    A study of Chinese firms cross-listed on Chinese and Hong Kong stock markets shows abnormal positive stock returns at the times of an announcement of a cross-listing and its launch.
  • Indonesia property: 2019 outlook

    Source: Lakshmanan R, Rohan Kapur
    Date Submitted: 13 Jan 2019
    Views: 25
    Downloads: 0
    What are the key drivers that will shape the course of Indonesian property market in 2019? CreditSights provides a credit outlook for the Indonesian property market and individual company recommendations.
  • Equity note on Nahee Aluminum Composite Panel Limited

    Source: Asaduzzaman Ashik
    Date Submitted: 01 Jan 2019
    Views: 51
    Downloads: 10
    Nahee Aluminum Composite Panel Limited debuted on Dhaka Stock Exchange in December 2017. It manufactures and sells aluminum composite panel (ACP) products in Bangladesh's domestic market. EBL Securities Limited offers an updated equity analysis report on the company.
  • S&P/JPX JGB VIX update - November 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 16 Dec 2018
    Views: 86
    Downloads: 2
    Anxiety around global markets provided a boost to S&P/JPX JGB VIX levels heading into the end of the month.
  • Informal short-term borrowings and SMEs' performance in a credit crunch: Evidence from Vietnam

    Source: Thang Bach, Thanh Le, Yen Bui
    Date Submitted: 13 Dec 2018
    Views: 362
    Downloads: 15
    Informal short-term borrowings, supplied mainly by family and friends, are a crucial liquidity source for SMEs in Vietnam's transitional economy, especially during a credit crunch. 

    This paper was presented at the Conference on Politics, Stock Markets and the Economy held at University of South Australia in early 2018.
  • Are equity markets really casinos?  When the timing is right

    Source: Tanakorn Likitapiwat, William F. Johnson
    Date Submitted: 07 Dec 2018
    Views: 593
    Downloads: 15
    Trading volatile stocks is akin to gambling. Risk-seeking investors turn to gambling when market volatility subsides and and jump back into stock trading when it rises.
  • Do customers’ government subsidies have spillover effects on the innovation of their suppliers? Evidence from China [UniSA 2018]

    Source: Yong Wang, Erwei Xiang, Adrian (Wai Kong) Cheung, Wenjuan Ruan
    Date Submitted: 22 Nov 2018
    Views: 369
    Downloads: 5
    An investigation of the spillover effects of government subsidies received by customer companies on the innovation of their suppliers, based on data of top five customers of Chinese listed companies.  

    This paper has been submitted to the conference Politics, Stock Markets and the Economy, held at the Centre of Applied Finance and Economics, University of South Australia Business School on 4-5 December 2018.
  • S&P/JPX JGB VIX update - October 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 15 Nov 2018
    Views: 99
    Downloads: 2
    Although the implied volatility of Japanese government bonds remained below the July and August highs, the JGB market was sensitive to rumors of possible changes to the Bank of Japan (BoJ) JGB purchases.
  • Building the technological and regulatory infrastructure of a 21st century international financial centre: Digital ID and KYC utilities for financial inclusion, integrity and competitiveness

    Source: FSDC
    Date Submitted: 05 Nov 2018
    Views: 1010
    Downloads: 0
    Customer identification and due diligence are essential tools in maintaining confidence and trust in the financial system. The regulatory requirements that govern them must be balanced against objectives of financial inclusion, overall customer experience, financial competitiveness and economic growth.

    The FSDC outlines a strategy for technological and regulatory infrastructure of digital identification and eKYC that will support Hong Kong’s role as a leading 21st century international financial centre.
  • Drivers and policies affecting China's cross-border investment and financing in aviation

    Source: David Yu
    Date Submitted: 24 Oct 2018
    Views: 172
    Downloads: 15
    Chinese outbound M&A deals have grown exponentially over the past five years. 
    Aviation, including airports, leasing and technology, as well as tourism are favoured industries that are promoted because of policy considerations and strong underlying stability and economics. 
  • Policy uncertainty and stock liquidity [UniSA 2018]

    Source: My Nguyen, Huu Nhan Duong, Chandrasekhar Krishnamurti, Justin Hung Nguyen, S. Ghon Rhee
    Date Submitted: 21 Nov 2018
    Views: 1330
    Downloads: 29
    Policy uncertainty has a strong negative effect on stock market liquidity, as investors hold back on trading risk-sensitive securities during periods of uncertainty. The paper explores three factors affecting liquidity: information asymmetry, cash flow risk and funding constraints. 

    This paper has been submitted to the conference Politics, Stock Markets and the Economy, held at the Centre of Applied Finance and Economics, University of South Australia Business School on 4-5 December 2018.
  • Mutual fund industry, high time to harness opportunities and overcome challenges.

    Source: CFA Society Bangladesh
    Date Submitted: 17 Oct 2018
    Views: 3026
    Downloads: 163
    This article qualifies for 0.5 CE under the guidelines of the CFA Institute Continuing Education Program. 
    We encourage CFA Institute members to login to the CE tracking tool to self-document these credits. 

    This is a short paper written by CFA Society Bangladesh member on the topic "The asset management industry in Bangladesh". The paper addresses the challenges that prevent growth of the industry and provide solutions to those challenges. The paper was published by the Bangladesh Securities and Exchange Commission, as part of their Silver Jubilee celebration.
  • Proactive Fiscal Policy to Be More Proactive: Takeaways From China’s State Council Executive Meeting on July 23, 2018

    Source: Jack Jiang
    Date Submitted: 14 Sep 2018
    Views: 439
    Downloads: 0

    Takeaways From China’s State Council Executive Meeting on July 23, 2018

  • S&P/JPX JGB VIX Update - August 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 13 Sep 2018
    Views: 176
    Downloads: 3
    JGB VIX Drops as BoJ Tries to Regain Control
  • Request for Comments - Industry Credit Guidelines: Chinese Homebuilders and Property Developers

    Source: Winnie Guo, Tony Tang
    Date Submitted: 05 Aug 2018
    Views: 626
    Downloads: 11

    HONG KONG, 3 August 2018. Pengyuan International (“PENGYUAN”) has today released its  Industry Credit Guidelines for the Chinese Homebuilders and Property Developers for public consultation.


    These criteria will be effective immediately on the date of final publication. We intend to complete a review of all affected ratings, if any, within the next six months. We expect no impacts on our current rating portfolio. We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment versions of these reports are available via the links below.



    Our Industry Credit Guidelines: Chinese Homebuilders and Property Developers describe our analytical approach to assessing the credit risks of companies that have more than 50% revenue generated from China homebuilder and property developer industry. These criteria are developed within the framework of PENGYUAN’s General Corporate Rating Criteria and are supplementary to our General Corporate Rating Criteria. In addition to the credit ratios that are used in the Corporate Rating Criteria, PENGYUAN considers specific credit factors that capture the risks from China homebuilder and property developer industry, which are assessed to derive a company’s indicative credit score. 

  • Request for Comments - Government-Related Entities Criteria

    Source: Stanley Tsai, CFA, Liang Zhong, Tony Tang
    Date Submitted: 05 Aug 2018
    Views: 792
    Downloads: 7

    HONG KONG, 3 August 2018. Pengyuan International (“PENGYUAN”) has today released its Government-Related Entities (GRE) Rating Criteria for public consultation.


    These criteria will be effective immediately on the date of final publication. We intend to complete a review of all affected ratings, if any, within the next six months. We expect no impacts on our current rating portfolio. We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment versions of these reports are available via the links below.


    Our Government-Related Entities Rating Criteria set forth PENGYUAN’s approach to rating GREs in the corporate (including project finance), financial institution, insurance and public finance sectors globally. In our opinion, an issuer’s affiliation with the government may have a positive, negative or neutral impact on its overall creditworthiness. One of our primary considerations in analyzing a GRE is whether its credit profile may be enhanced by potential extraordinary support from the government in the event of financial distress, or conversely, impaired by potential extraordinary adverse interventions from the government should the government experience financial difficulties.

  • Overview of Uzbek Cement Sector

    Source: Kenneth Lai, Veysal Usmanov, Shawn Abdurakhimov
    Date Submitted: 21 Jul 2018
    Views: 657
    Downloads: 9
    Cement sector is concentrated with top 4 players producing 93% of the total cement (9.2 MT/year as of 2018) in Uzbekistan. Qizilqum Cement (3.6 mln MT/year as of 2017), Akhangarancement (owned by Russia's Eurocement; 2.2 mln MT/year as if 2017), Bekabad Cement (1.1 mln MT/year) and Almalyk (1.0 mln MT/year) are the top 4 cement companies in Uzbekistan. New entrants to the industry with smaller production capacity are Djizzakh Cement, Karakalpak (Titan) Cement and Turon Eco Cement. Very large portion of cement produced in the country serves the internal demand of Uzbekistan while small portion is exported to Central Asian countries and Afghanistan.
  • Does FV Measurement contradict long-term investment?  -- Discussion EC consultation Fitness Check

    Source: Chie Mitsui
    Date Submitted: 11 Jul 2018
    Views: 380
    Downloads: 21
    The European Commission(EC) published consultation ”Fitness Check” asking people with comprehensive view for the fitness of the EU reporting framework for public company to EU strategy of enhancing environmental investment. Recently EU issued a report which discusses sustainable finance by "High-level experts group(HLEG)" and announced its’ action plan.
    This consultation is one of them. It asks people to possibility to amend IFRS 9 FV measurement for long-term investment. This is not issue only for EU. We discussed this consultation and summarize what we learned.
  • S&P/JPX JGB VIX Update - June 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 10 Jul 2018
    Views: 82
    Downloads: 4
    JGB VIX Finishes Month at Historic Lows
  • Overview of Hong Kong Financial Services Industry

    Source: Financial Services Development Council (FSDC)
    Date Submitted: 12 Jun 2018
    Views: 1465
    Downloads: 106
    The Financial Services Development Council (FSDC) released an updated version of the “Overview of Hong Kong Financial Services Industry” in May 2018 which aims to facilitate industry practitioners and the wider public to understand and promote the strengths of Hong Kong as an international financial centre. The report covers the below sessions:

    Why Hong Kong?
    Being one of the world's most competitive and freest economy, Hong Kong possesses advantages like the strategic location and gateway to Mainland China, key conduit for investment and trade linked exchange rate system, bilingual legal system and simple tax regime, deep pool of talent and centre of expertise.

    Asset and Wealth Management 
    As the leading fund management centre in Asia Hong Kong has a diversified distribution of fund management and advisory business, an active ETF market and a sizable pension fund market. The soon-to-be-introduced open-ended fund companies structure will further promote Hong Kong as the Asian asset management centre for both conventional funds and PE funds.

    Hong Kong has a robust banking industry by international standards and is regarded as the global offshore RMB hub. The Hong Kong Government is exploring with the Mainland authorities ways to open up more channels for two-way cross-border RMB fund flows.

    Capital Markets
    With HKEX being the leading stock exchange in fundraising (2015-2017) and diversified listed companies and investors, Hong Kong is looking to increase connectivity with Mainland investors and the Mainland market.

    Hong Kong ranks 1st in Asia in insurance density and 2nd in Asia in insurance penetration in 2016. Government has recently taken a number of initiatives to promote the insurance sector which includes the establishment of insurance authority, HK$100mn 3-year pilot programme for talent development and the adoption of FinTech on the development of personalized products.

    Fintech and Green Finance
    FinTech cooperation agreements signed with partners such as Australia, Dubai, Gibraltar, Singapore, Switzerland and the UK. On the other hand, HKMA, Cyberport in Hong Kong and the the Office of Financial Development Service of Shenzhen (OFDS) are exploring the feasibility of establishing cross-border soft-landing facilities in Shenzhen, encouraging Hong Kong FinTech firms to expand their businesses, and Mainland firms to establish themselves in Hong Kong.

    Professional Services & Financial Infrastructure
    Half of the Global 100 law firms and 1,400 regional headquarters of consultancy firms are set up in Hong Kong. With a well-established payment & settlement system and bilingual legal system, Hong Kong has the increasing prevalence of being the Alternative Dispute Resolution (ADR) forum. Meanwhile the Belt and Road Initiative will drive significant demand in Hong Kong’s world-class professional services.
  • AsianFA: Off-Balance Sheet Securitization, Bank Lending, and Corporate Innovation

    Source: Yiwei Dou, Zhaoxia Xu
    Date Submitted: 31 May 2018
    Views: 188
    Downloads: 7
    We investigate how corporate innovation is influenced by banks' off-balance sheet securitization. Exploiting a recent mandate that removes the off-balance sheet status of some securitized assets, we find a reduction in innovation for firms  borrowing from affected banks. The reduction is concentrated among firms whose banks experience more downward pressure on regulatory capital ratios and greater market discipline, and firms more dependent on external financing. Affected banks raised loan spreads and cut loan amounts after the mandate. The results suggest that off-balance sheet treatment of securitization has a real effect on firm innovation through bank lending.
  • Requests for Comments: Chinese Local Government Rating Criteria

    Source: Liang Zhong
    Date Submitted: 24 May 2018
    Views: 218
    Downloads: 8

    HONG KONG, 23 May 2018. Pengyuan International has today released its Chinese Local Government Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio.

    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:

    Chinese Local Government Rating Criteria:

    Our Chinese Local Government Rating Criteria describe our top-down approach to assessing the credit risks of all local governments (LGs) and assigning issuer credit ratings (ICRs) and issuance credit ratings to LGs in China. We explain how we assess the key rating factors (namely a LG’s economic strength, budgetary strength, debt burden, liquidity, and governance and financial management) that together drive a LG’s relative credit strength compared to peer LGs reporting directly to the same higher-level government. We combine the relative strength score of the LG with the rating on its higher-level government and our other analytical considerations to determine ICR on the LG. 



    Chief Analytics Officer
    Tony Tang
    +852 3615 8278

    Sovereign and Public Finance
    Liang Zhong
    +852 3615 8341

  • Safeguards against the Introduction of a Dual-Class Shares Structure

    Source: Rocky Tung, Mary Leung, CFA
    Date Submitted: 17 May 2018
    Views: 3462
    Downloads: 80

    Safeguards against the Introduction of a Dual-Class Shares Structure
    As revealed in a survey conducted in Asia Pacific by CFA Institute in March, a majority (60%) of the 450-plus respondents have not had any experience investing in firms with a DCS structure, which signalled the urgency for and need to educate investors and the general public on the implications of DCS structures.

    The survey, “Dual-Class Shares and the Demand for Safeguards,” revealed that respondents in the region were divided when asked whether DCS structures should be introduced to the market, with 53% opposing the introduction and 47% in favour. Regardless of their position on DCS, almost all (97%) respondents considered it necessary to enact additional safeguards if DCS structures are permitted.

    Among different possible safeguards, more than 90% of respondents considered it appropriate to implement enhanced mandatory corporate governance measures as well as time- and event-based sunset provisions, such as automatic conversion of shares with super voting rights to ordinary voting rights. Specifically, 94% of respondents considered it appropriate to introduce a time-based sunset provision; among which, 91% of such respondents considered it appropriate to convert shares with super voting rights to ordinary shares within 10 years. Separately, 93% of respondents considered introducing a maximum voting differential appropriate; 63% of these respondents found a 2:1 maximum voting differential optimal.

  • China in Brief: Some Debts Good, Some Debts Bad

    Source: Sandra Chow, CFA, Ang Ben You, Cheong Yin Chin, CFA
    Date Submitted: 07 May 2018
    Views: 271
    Downloads: 0
    • Chinese banks and corporates have now released their full FY17 financial statements, following preliminary results in March.  The reports revealed how China's clampdown on leverage is starting to affect individual issuers in different ways.
    • Chinese banks' FY17 operating metrics showed the larger banks (the big six and larger joint stock banks) emerging stronger than the smaller banks from the government's deleveraging campaign, in terms of profitability and asset quality.   Because larger banks have been net interbank lenders, profitability has benefited from higher interbank rates. Asset quality also showed positive trends with special mention loan ratios falling and NPL (non-performing loan) classification actually becoming more conservative. On the other hand, the weaker joint stock and city commercial banks have seen profitability take a hit due to more expensive interbank funding costs. Their deteriorating asset quality shows them as being disproportionately affected by China's deleveraging campaign. 
    • Asset growth showed broad moderation at the banks in FY17, though growth rates were still higher at the smaller ones. The big six banks reported broadly lower asset growth rates compared to FY16. This trend can be extrapolated to the joint stock and city commercial banks, though here the picture was more mixed, with a few still seeing expansion. Slower asset growth was driven mainly by investment receivables, which fell as a % of assets at many banks. Banks' exposure to shadow loans should continue to shrink this year given the emphasis on fighting financial risks; we expect more regulations targeted at these items. 
    • Chinese real estate firms' liquidity weakened during FY17, despite robust contracted sales.  Slower mortgage approvals amid China's credit tightening delayed the companies' cash collections.  Undeterred, the developers continued heavy land acquisitions and most surpassed their FY17 land purchase budgets. All of the developers we cover aside from Greenland Hong Kong posted negative free cash flow last year. We see more bond supply risk from the China property sector as the developers plug their funding gaps with fresh onshore and offshore debt. The authorities do not seem to be clamping down heavily on developers' funding sources: onshore bond issuance among the Chinese high yield developers we track soared by 76% up to 20 April this year, compared to the same period in 2017. Offshore bond issuance has also remained steady, although rising risk aversion among $ bond investors is crimping appetite for Chinese property bonds and prompting more issuance of short-dated paper.
    • The Chinese industrial companies we track posted solid FY17 results overall, with companies ranging from car maker Geely Auto, piped gas provider China Oil & Gas and infant formula provider Health & Happiness reporting improving operations and stable or stronger credit metrics. With more prudent capex plans than the property developers, funding needs are generally lower. But regulatory approval for bond issuance seems to be on a case-by-case basis and issuers from overcapacity industries may find it harder to gain approval. Aluminium producer China Hongqiao, for instance, issued a 363-day bond in April, suggesting that investors were taking a cautious view of Hongqiao's long-term credit outlook, or that the company struggled to obtain an issuance quota from China's National Development and Reform Commission (deals of under 1 year maturity are not subject to NDRC approval). Yet the authorities are also supporting new funding channels selectively, presumably to ease the impact of credit tightening. West China Cement reported that it enjoys tax-free income from its new finance lease business, for instance.
    • We expect China will continue to tweak credit restrictions selectively, in order to rein in excessive leverage without causing a credit crunch.  Regulatory approval can be forthcoming to fund projects that are in line with government policies. For example, despite the general credit tightening, Chinese developers can obtain large quotas for China's new 'Rental Apartment Special Bonds' (长租公寓REIT), as the government tries to tackle the problem of housing affordability.  Amid the deleveraging campaign, it seems that not all debt is bad after all.
  • How Are International Trade Issues Influencing Global Markets?

    Source: Sam Tsui, Blu Putnam
    Date Submitted: 04 May 2018
    Views: 647
    Downloads: 0
    The fear of trade war has been intensified with announcement of import tariff by the U.S. S&P DJI’s Sam Tsui sits with CME Group’s Blu Putnam to discuss the international trade issues and the impacts on the economies.
  • Request for Comments: Sovereign Rating Criteria

    Source: Liang Zhong
    Date Submitted: 25 Apr 2018
    Views: 447
    Downloads: 6

    HONG KONG, 25 Apr 2018. Pengyuan International has today released its Sovereign Rating Criteria for public consultation. These criteria will be effective immediately on the date of final publication, and we intend to complete the review of all affected ratings, if any, within six months thereafter. We expect no impact on our current rating portfolio. 


    We would appreciate comments on these draft criteria from investors and other market participants. The request-for-comment version of the Criteria and analyst contact details are available via the following link:


    Sovereign Rating Criteria: 


    Our Sovereign Rating Criteria describe our analytical approach to assessing the credit risks of all sovereigns and assigning issuer credit ratings (ICRs) and issuance credit ratings to sovereigns. We explain in detail how we assess the key rating factors (namely a sovereign issuer’s debt burden, stage of economic development, economic fundamentals, institutions and policies and distinctive movers of underlying liquidity risk) that together drive a sovereign’s indicative credit score (ICS). We also outline our other analytical considerations, which, together with the ICS, will determine an entity’s Issuer Credit Rating.  

    For these criteria, we define a sovereign as a member state of United Nations or a state that runs its own government, enjoys fiscal independence and determines its own monetary regime.


  • S&P/JPX JGB VIX® Update March 2018

    Source: Applied Academics, S&P Dow Jones Indices
    Date Submitted: 10 Apr 2018
    Views: 91
    Downloads: 1
    JGB VIX Spikes After BoJ Comments.
  • 'AsianFA' Financial Flexibility Beyond Earnings Management: Do Pension Accounting Assumptions Create Shareholder Values?

    Source: Shingo Goto, Noriyoshi Yanase
    Date Submitted: 01 Apr 2018
    Views: 39
    Downloads: 4
    While firms often use pension return assumptions to manage earnings, they may also use high return assumptions to signal lower pension contributions to increase internal cash flows available for profitable investments. Benefits of such internal funding can overweigh forgone tax benefits. Our cross-sectional evidence suggests that pension return assumptions can exert real effects beyond earnings management, as they predict significant increases in operating cash flows, fixed capital investments, and R&D expenditures. The stock market places significant values on pension return assumptions beyond the valuation of management forecasts of earnings, especially among firms with low profitability or large pension underfunding.
  • NZFC - Share Repurchases in Different Taxation Systems

    Source: Rhys Allan, Michael O’Connor Keefe
    Date Submitted: 27 Mar 2018
    Views: 45
    Downloads: 1
    This paper examines whether tax policy influences a firm share repurchase decision. Using firm-level data from single and double dividends taxation system, we find that firms in a single dividend taxation system repurchase fewer shares than those in a double. We find that repurchases by firms in a single dividends taxation system are less sensitive to cash flow than firms with a double taxation system. We find that firms in a single dividends taxation system use share repurchases to distribute non-operating income, however, do not use repurchases to distribute operating income. In contrast to past literature, we find that firms in a double dividends taxation system use share repurchases to distribute both operating and non-operating income. We also find evidence consistent with past literature that suggests share repurchases are complements rather than substitutes to cash dividends. 
  • Commodities Are Like a Box of Chocolates, if You Only Factor in Interest Rates and the U.S. Dollar

    Source: Marya Alsati
    Date Submitted: 16 Mar 2018
    Views: 280
    Downloads: 0
    The Dow Jones Commodity Index (DJCI) was down 1.9% for the month and up 0.7% YTD, and the S&P GSCI was down 3.3% and flat YTD.
  • NZFC - Policy Uncertainty and Market Liquidity

    Source: My Nguyen, Huu Nhan Duong, Chandrasekhar Krishnamurti , Justin Hung Nguyen , S. Ghon Rhee
    Date Submitted: 15 Mar 2018
    Views: 48
    Downloads: 1
    We examine the effect of policy uncertainty on firm level stock market liquidity. We posit three channels through which policy uncertainty may affect firm level liquidity. First, policy uncertainty could affect firm level liquidity through the information asymmetry channel. During periods of heightened policy uncertainty, managers have incentives to delay their communication of these decisions to the public due to adverse effects on their stock prices. We expect higher levels of information asymmetry leading to lower levels of market liquidity. Second, we suggest that a firm’s liquidity would be more adversely affected if it faces higher levels of cash flow risk during periods of high policy uncertainty. Finally, we postulate that policy uncertainty affects a firm’s market liquidity by affecting a firm’s funding liquidity – defined as the ease with which a trader can obtain financing. Our empirical results suggest that policy uncertainty indeed affects firm level market liquidity through the three channels posited. Our results are robust to controls for macroeconomic variables and potential endogeneity.
  • Searching for Growth in the New China Economy

    Source: Craig Lazzara, Simon Lee
    Date Submitted: 02 Mar 2018
    Views: 387
    Downloads: 0
    What’s driving the growth of China’s equity market? Simon Lee of CSOP Asset Management joins S&P DJI’s Craig Lazzara to discuss the forces driving economic growth in China and how they are influencing equity sectors in China’s “new economy”.
  • IFA - Does Employees’ Interest Matter More than Shareholders’ Interest in Determining Cash Management Policy?

    Source: Kartick Gupta
    Date Submitted: 09 Feb 2018
    Views: 47
    Downloads: 1
    Extant literature suggests that firms that follow good corporate governance (CG) practices maintain lower cash holdings. However, emerging literature suggests that employee-friendly firms maintain higher cash holdings. Thus, the firm’s commitment towards employees, considered as a key stakeholder, seems to contradict with the good CG practices. Our study finds that the cash ratio is negatively related to good CG practices but not to employee-friendly practices. However, employee-friendly firms maintain lower cash holdings in the countries that have strong labour laws and regulations. This suggests that benefits provided at the country-level complement the benefits provided by the firm.
  • Sex, drugs, and bitcoin: How much illegal activity is financed through cryptocurrencies?  

    Source: Sean Foley, Jonathan R. Karlsen, Talis J. Putnins
    Date Submitted: 02 Feb 2018
    Views: 423
    Downloads: 0
    Cryptocurrencies have grown rapidly in price, popularity, and mainstream adoption. The total market capitalization of bitcoin alone exceeds $250 billion as at January 2018, with a further $400 billion in over 1,000 other cryptocurrencies. Over 170 “cryptofunds” have emerged, attracting around $2.3 billion in assets under management. What was once a fringe asset is quickly maturing.
    The rapid growth in cryptocurrencies and the anonymity that they provide users has created considerable regulatory challenges, including the use of cryptocurrencies in illegal trade (drugs, hacks and thefts, illegal pornography, even murder-for-hire), potential to fund terrorism, launder money, and avoid capital controls. There is little doubt that by providing a digital and anonymous payment mechanism, cryptocurrencies have facilitated the growth of “darknet” marketplaces that trade illegal goods and services.
    In a recent research paper, we quantify the amount of illegal activity that involves the largest cryptocurrency, bitcoin. As a starting point, we exploit several recent seizures of bitcoin by law enforcement agencies to construct a sample of known illegal activity. We also identify the bitcoin addresses of major illegal darknet marketplaces. The public nature of the blockchain allows us to work backwards from the law enforcement agency bitcoin seizures and the darknet marketplaces through the network of transactions to identify those bitcoin users that were involved in buying and selling illegal goods and services online. We then apply two econometric methods to the sample of known illegal activity to estimate the full scale of illegal activity.
    We find that illegal activity accounts for a substantial proportion of the users and trading activity in bitcoin. For example, approximately one-quarter of all users (25%) and close to one-half of bitcoin transactions (44%) are associated with illegal activity. The estimated 24 million bitcoin market participants that use bitcoin primarily for illegal purposes (as at April 2017) annually conduct around 36 million transactions, with a value of around $72 billion, and collectively hold around $8 billion worth of bitcoin.
    To give these numbers some context, the total market for illegal drugs in the US and Europe is estimated to be around $100 billion and €24 billion annually. Such comparisons provide a sense that the scale of the illegal activity involving bitcoin is not only meaningful as a proportion of bitcoin activity, but also in absolute dollar terms. The scale of illegal activity suggests that cryptocurrencies are transforming the way black markets operate by enabling “black market e-commerce”. In effect, cryptocurrencies are transforming the black market much like PayPal and other online payment mechanisms revolutionized the retail industry through online shopping.
    In recent years (since 2015), the proportion of bitcoin activity associated with illegal trade has declined. There are two reasons for this trend. The first is an increase in mainstream and speculative interest in bitcoin (growth in the number of legal users), causing the proportion of illegal bitcoin activity to decline, despite the fact that the absolute amount of such activity has continued to increase. The second factor is the emergence of alternative cryptocurrencies that are better at concealing a user’s activity (e.g., Dash, Monero, and ZCash). Despite these factors and numerous darknet marketplace seizures by law enforcement agencies, the amount of illegal activity involving bitcoin remains close to its all-time high.
    In shedding light on the dark side of cryptocurrencies, we hope this research will reduce some of the regulatory uncertainty about the negative consequences of cryptocurrencies. Hopefully, more informed policy decisions that assess the costs and benefits will contribute to these technologies reaching their potential. Our paper also helps understand the intrinsic value of bitcoin, highlighting that a significant component of its value as a payment system comes from its use in illegal trade. This has ethical implications for bitcoin as an investment. Third, the techniques developed in this paper can be used in cryptocurrency surveillance in a number of ways, including monitoring trends in illegal activity, its response to regulatory interventions, how its characteristics change through time, and identifying key bitcoin users, such as “hubs” in the illegal trade network.
    For more information, download the paper at
  • Rising Rate Implications for Japanese Investors

    Source: Michele Leung,
    Date Submitted: 29 Jan 2018
    Views: 311
    Downloads: 0
    The outperformance of U.S. Treasuries this year reversed the previous trend, wherein Japanese sovereign bonds delivered higher risk-adjusted return in three- and five-year timeframes due to the better returns and lower volatility.
  • IFA - Trust based origins of disagreement in financial markets

    Source: Anmol Sethy
    Date Submitted: 29 Jan 2018
    Views: 1019
    Downloads: 6
    The fact that disagreement (herding) affect asset returns is now well established in the literature. However, not much attention has been paid to the source of this disagreement. This article presents evidence that one such source is the _trust structure. The article establishes that trust level has a direct bearing on disagreement as measured through dispersion in analyst earnings estimates. Disagreement decreases as trust increases. Other way to put it is that herding increases as trust increases. The article also advocates that a new trust metric, called trust radius, has a significant bearing on disagreement.
  • The Investment Opportunity in China’s “New Era”

    Source: Vania Pang
    Date Submitted: 08 Jan 2018
    Views: 448
    Downloads: 0
    A long-term economic roadmap for China has been set at the 19th Party Congress of China for the new era.
  • CFA Societies Australia: Submission to the Australian Investment Securities Commission on the National Financial Literacy Strategy

    Source: Susan Morey
    Date Submitted: 11 Dec 2017
    Views: 12778
    Downloads: 28
    CFA Societies Australia: Submission to the Australian Investment Securities Commission on the National Financial Literacy Strategy
  • Asset pricing implications of your mutual fund manager's constraints

    Source: Pratish Patel, Brian Ayash, Ziemowit Bednarek
    Date Submitted: 26 Nov 2017
    Views: 253
    Downloads: 4
    By the end of 2015, U.S. mutual funds managed $15 trillion in assets. These funds control about 25% of the equity and 40% of the commercial paper market. As a result, regulations affecting these funds have asset pricing implications. In this paper, we analyze the liquidity management constraint imposed on these funds by the Investment Company Act of 1940. Due to the Act, some funds do not trade illiquid stocks. The non-tradability of these stocks leads to sub-optimal risk sharing. In a competitive equilibrium, we show that this constraint generates the ``betting against beta'' phenomenon. Moreover, because of this constraint, alpha is non-zero in general. Adding factors to eliminate alpha is therefore a futile exercise. Lastly, we empirically corroborate the theory by offering an alternate explanation of the distress risk anomaly. 
  • Japanese Banks: BOJ's Take on Financial Stability

    Source: David Marshall
    Date Submitted: 30 Oct 2017
    Views: 549
    Downloads: 0
    • In its latest financial stability report the BOJ highlights the unusually low profitability of Japanese banks and expresses concerns about the soundness of some lenders and risks to the efficiency of credit allocation
    • Too many lenders are fighting for a shrinking market as the population and the number of firms declines
    • Nevertheless, domestic lending has been growing at around 3%, more strongly at the regional banks than the majors, led by real estate lending to SMEs
    • Overseas funding costs have risen which has led Japanese banks to slow their growth in overseas lending and securities investment to focus more on risk and returns
    • Domestically the banks have shed yen bonds as the BOJ has bought JGBs but holdings by the major banks have picked up recently and all the banks have increased holdings of investment trusts in pursuit of higher returns  
    • As domestic loan growth has exceeded GDP growth, Japan's credit/GDP ratio has been rising, but this comes after a declining trend that has lasted more than 20 years. Before its bubble burst, Japan's ratio peaked at something close to the level that China's corporate debt/GDP is now reaching
    • The BOJ sees Japan's banking system as basically stable, but facing profitability challenges from a shrinking customer base, low lending rates, inefficiency and limited income diversification.
  • Looking Ahead to China’s 19th National Congress

    Source: Vania Pang
    Date Submitted: 20 Oct 2017
    Views: 179
    Downloads: 0
    The reshuffling of the Politburo Standing Committee (PSC) members is crucial to the centralization of power for the new government, as well as the economic and social policies in the coming few years.
  • Policies on Foreign Direct Investments (FDI) towards Economic Development

    Source: Mark Jayson L. Almira
    Date Submitted: 15 Oct 2017
    Views: 220
    Downloads: 10
    This paper characterizes the current Foreign Direct Investments (FDI) in the Philippines and other Southeast Asian nations and proposes some policy that is geared toward the economic development. It also discusses the current laws and regulations directed to FDI in the Philippines. Key policy recommendation includes (1) Improvement of domestic spending; (2) Lower effective tax rate; (3) Targeted infrastructure spending; (4) Stronger financial sector; (5) Effectively enforce contracts; (6) Reducing international transaction costs; and (7) Maintain political stability and eliminate corruption.
  • Lifting Suspension of Usury Laws in the Philippines

    Date Submitted: 15 Oct 2017
    Views: 44
    Downloads: 3
    This paper is about the possibility of lifting Centranl Bank Circular 905, series of 1982 which suspended the application of Usury Laws in the Philippines.
  • Inclusive Business in the Philippines

    Date Submitted: 15 Oct 2017
    Views: 252
    Downloads: 8

    This paper tackles the role inclusive businesses play in our economic growth. We shall also be tackling specific companies and their programs geared towards inclusive business and poverty alleviation. Lastly, we shall seek means on promoting this business model so that more would participate in this initiative. 

  • Unifying Faith and Finance

    Source: Jazzle Eve L. Cruz
    Date Submitted: 14 Oct 2017
    Views: 213
    Downloads: 8
    This policy paper discusses how it is possible to earn competitive returns from socially- responsible investments. The BPI Catholic Values Equity Feeder Fund is the first of its kind in the Philippines which integrates ethical factors in making investments. This hallmark product presents a challenge and an opportunity for other financial institutions to follow the trend of unifying faith and finance.
  • 市值最大的 20 只中国概念股年初至今回报率达 27%

    Source: 新交所
    Date Submitted: 10 Oct 2017
    Views: 339
    Downloads: 0
    值最大的 20 只中国概念股年初至今回报率达 27%
    • 中国 2017 年 GDP 预测已向上修正为按季度增长 6.7%。推动中国经济增长的因素包括一带一路计划、供给侧结构性改革、国有企业改革、不断发展的中产阶级和国内消费以及“中国制造 2025”新经济计划。
    • 新交所接近四分之一(或 180 家)上市公司有至少 20% 收入来自中国,其中 80% 公司有一半或以上收入来自中国。这些公司为投资者提供从中国的经济增长中获得收入的机会。
    • 在市值最大且至少 50% 收入来自中国的 20 只股票中,有 16 只股票年初至今录得上涨。表现最出色的 5 只股票分别是赫比国际有限公司 (Hi-P Intl, +165.7%)、依利安达 (Elec & Eltek Intl Co, +66.4%)、中国尚舜化工控股 (China Sunsine Chem Hldgs, +59.0%)、普洛斯 (Global Logistic Properties, +49.1%) 和仁恒置地 (Yanlord Land Group, +25.0%)。
    中国拥有近 14 亿人口,是全球人口最多的国家以及全球最大的经济体(根据世界银行数据),2016年 GDP 超过 21 万亿美元。摩根士丹利的中国蓝皮书预计中国可以摆脱中等收入陷阱并在 2027 年实现人均国民总收入 (GNI) 超过 12,500 美元(2016 年的人均国民总收入为 8,100 美元)。
  • Central Bank Balance Sheet Policies and Spillovers to Emerging Markets 

    Date Submitted: 29 Sep 2017
    Views: 915
    Downloads: 20

    We develop a theoretical model that shows that in the near future, the monetary policies of some key central banks in advanced economies (AEs) will have two dimensionschanges in short-term policy rates and balance sheet adjustments. This will affect emerging market economies (EMs), especially those with a pegged exchange rate, as these EMs primarily use a single monetary policy tool, i.e., the short-term policy rate. We show that changes in policy rates and balance sheet adjustments in AEs may differ in their respective financial spillovers to pegged EMs. Thus, it will be difficult for EMs to mitigate different types of spillovers with a single monetary policy tool. In that context, we use the model to show how EMs might use additional toolscapital controls and/or macro-prudential policyto complement their monetary policy and financial stability toolkit. We also discuss how balance sheet adjustments that affect long-term interest rates may percolate to influence short-term interest rates via financial plumbing. 

  • Family Affair? - Insider Trading and Family Firms: Evidence from Thailand  

    Source: Rapeepat Ingkasit, Professor Arnat Leemakdej, DBA
    Date Submitted: 18 Sep 2017
    Views: 1081
    Downloads: 31
    Thai insiders can earn significant abnormal returns from trading shares of their firms. The effect is more pronounced when trades occurred prior to earnings announcement. The results provide reasoning for regulation that prohibits the insiders to trade prior to earnings announcement. Both family ownership and control structure affects the magnitude of market reaction. The findings support the entrenchment effect in family firms. The presence of specific categories of blockholder has monitoring effect while some types of blockholder seem to enhance insiders’ signal and strengthen the market reaction. Significant reduction in abnormal returns earned by insiders in the firm with voluntary blackout policy suggest that the policy effectively forbid the insiders to trade when they possess valuable information that is not available to the public.
  • HKSFA's Comment on HKEX Consultation Paper on Review of the GEM and Changes to the GEM and Main Board Listing Rules and New Board Concept Paper

    Source: The Hong Kong Society of Financial Analysts
    Date Submitted: 05 Sep 2017
    Views: 1801
    Downloads: 19
    HKSFA's comment on HKEX's Consultation Paper on Review of the GEM and Changes to the GEM and Main Board Listing Rules and New Board Concept Paper
  • Mergers and acquisitions: how do you view their underlying substance?

    Source: Hong Kong Institute of Certified Public Accountants
    Date Submitted: 30 Aug 2017
    Views: 3092
    Downloads: 79
    Are you a shareholder or analyst with an interest in mergers and acquisitions? 
    The accounting standard-setters need your expertise. 

    We are aware that M&As are common and can take the form of group restructurings or third party acquisitions. There is usually no question that there is underlying substance to acquisitions with third parties - the transaction price typically represents the fair market value of the acquired business. But M&As within a group might arguably be different.

    The findings of this M&A survey will be published and will help us consider whether all M&As should be accounted and reported in the same way. 

    To participate, click on this link:, or download and email us the attached survey:
  • Systematic risk, government policy intervention, and dynamic contrarian investments

    Source: Jiapeng Liu, Qizhi Tao, Wenxuan Hou, Ting Zhang
    Date Submitted: 17 Aug 2017
    Views: 266
    Downloads: 10
    When systematic risk is high, or the market crashes, most risk-averse investors choose to exit the market; however, there are some contrarian investors who opt to make investments. We model such contrarian behaviors by incorporating investors' expectations of government policies into the conventional risk–return trade-off framework. We show that when policy risk is low and there is a high probability that the market will recover subsequent to government intervention, the optimal solution is for investors to make investments. However, when the policy risk is high and the market has a high probability of deteriorating, the optimal investment decision is to exit. Our simulation results are consistent with the model predictions.
  • Who can get money? Evidence from the Chinese peer-to-peer lending platform

    Source: Qizhi Tao, Ziming Lin, Yizhe Dong
    Date Submitted: 17 Aug 2017
    Views: 103
    Downloads: 8
    This paper explores how borrowers’ financial and personal information, loan characteristics and lending models affect peer-to-peer (P2P) loan funding outcomes. Using a large sample of listings from one of the largest Chinese online P2P lending platforms, we find that those borrowers earning a higher income or who own a car are more likely to receive a loan, pay lower interest rates, and are less likely to default. The credit grade assigned by the lending platform may not represent the creditworthiness of potential borrowers. We also find that the unique offline process in the Chinese P2P online lending platform exerts significant influence on the lending decision. We discuss the implications of our results for the design of big data-based lending markets.
  • HKSFA's Comment on HKEX's Concept Paper on Weighted Voting Rights

    Source: HKSFA
    Date Submitted: 16 Aug 2017
    Views: 526
    Downloads: 12
    HKSFA express its views on whether, in concept, governance structures that give certain persons voting power or other related rights disproportionate to their shareholding (weighted voting right structures or “WVR structures”) should be permissible for companies currently listed or seeking to list on the Exchange.
  • Value at Risk and Expected Shortfall Estimation for China Securities Market

    Source: Yam-wing SIU
    Date Submitted: 07 Aug 2017
    Views: 645
    Downloads: 14
    Financial system stability matters for economic growth.  Instability generates adverse effects on the economy because of their spilled over effects as observed in the recent financial crisis.  Many US and European banks required governments capital injections to stay afloat.  In January 2016, Basel Committee on Banking and Supervision of Bank for International Settlements issued a new revised market risk framework – “Minimum capital requirements for market risk”.  One of the features of the revised framework is a shift to an expected shortfall measure of risk under stress.  In this paper, we performed both value-at-risk and expected shortfall estimations for US and China securities markets.  While we use S&P 500 index, SPX, for US market, we use the time series of iShares China Large-Cap ETF, FXI, as a proxy for the broad market indicator of China securities market.  It is because there is a corresponding volatility index, VXFXI, for this Large-Cap ETF.  In this study, efforts have been made to turn volatility index into a risk management tools in the context of value-at-risk and expected shortfall.  It is found that it would be inappropriate to simply scale up the 1-day volatility by multiplying the square root of time (or the number of days) ahead to determine the risk over a longer horizon of i days.  Instead, empirical constants that are used to multiply the levels of volatility indexes, VIX and VXFXI, for estimating value-at-risk and expected shortfall of various significance levels for 1 to 22 days ahead for SPX and FXI have been statistically determined using 16 years and 4.75 years of daily data respectively.  Results show that the shift to expected shortfall approach with significance level of 2.5% yields an unexpected impact on regulatory capital requirements from the value-at-risk approach with significance level of 1%.
  • The Business of Ethics

    Source: Dr Raymond Madden, CEO
    Date Submitted: 28 Jul 2017
    Views: 1588
    Downloads: 0
    "Restoring the trustworthiness of global business will be a long-haul and there are no short-cuts when it comes to trying to embed ethical behaviour in business DNA.  But the dialogue in global board rooms is beginning to change with the importance of corporate culture, behaviours and the causal links to incentives and rewards gradually being recognised.  Our international businesses will always have responsibilities that go way beyond compliance - you cannot regulate for good behaviour.  Sustainable improvements in culture and behaviour in banking and right across the business landscape can only be achieved if individual institutions, owners, investors and the people leading and managing them step up to the plate.  As Dr Madden's thought provoking book makes clear, responsibility and accountability have to move to the top of every Board agenda".  Dame Collete Bowe, Chairman, UK Banking Standards Board.
  • RMBI Newsletter Issue 13 (Financial Crime Risk: Anti-Money Laundering and The Rise of Text Mining in Financial Markets)

    Source: Tsang Chiu Yu, Derek, Wong Ching Ip, Venice, Chiu Hok He, Angus, Li Chin Wa, Chin
    Date Submitted: 26 Jul 2017
    Views: 711
    Downloads: 0
    In the latest issue (Issue 13 – August 2017), it covers the stories of:
    Financial Crime Risk : Anti-Money Laundering Practices in Banking
    To understand anti-money laundering, we have to understand what money laundering is. Money Laundering is the process of converting illegal funds into seemingly legitimate assets with the purpose of concealing the ownership or original source of these funds. This makes it difficult for the authorities to trace the origins of the funds. To counter this, the banking sector has established a set of internal regulations and system known as anti-money laundering. These are legal controls taken by financial institutions to investigate suspicious transactions to help prevent money laundering activities within the banking sector.
    The Rise of Text Mining in Financial Markets
    The world is awash in data. Financial markets are awash in data. We are generating around 2.5 quintillion (2.5×1018) bytes of information every day, and there is an average of 4,000 brokerage reports a day comprising around 36,000 pages in 53 languages. As market participants try to maximize their competitive edge from the growing mountain of information, the nancial world increasingly feels there is a need to harness the power of big data and it has been shaping the way they acquire, analyze and utilize data. The recent development is the rapid expansion of text mining. Hence, this article will focus on the development of Text Mining technology as well as Text Mining technique.
  • Earnings Management and Dividend Policy: Empirical Evidence from Major Sectors of Pakistan  

    Source: Farhan Ahmed, Neha Advani, Muhammad Kashif
    Date Submitted: 17 Jul 2017
    Views: 1337
    Downloads: 23
    This paper means to inspect the regression between Price earning (P/E) ratio as a proxy of earning management and payout proportion that is dividend policy. This paper utilises multivariate analysis to examine the relationship between price-earnings ratio and dividend policy. Using 10 years annual data from 2006-2016, this paper delivers new confirmation demonstrating that when the return on equity is more prominent than the required rate of return, the P/E ratio and dividend payout ratio shows a negative relationship and positive convexity or vice versa.
  • Title: A Resolution to the Problem of Multiple IRR: A Modified Capital Amortization Schedule (MCAS) Method for Non-Normal Cash flow (NNCF) to Obtain a Unique IRR (July 11, 2017).

    Source: Kannapiran C. Arjunan
    Date Submitted: 12 Jul 2017
    Views: 164
    Downloads: 1

    Title: A Resolution to the Problem of Multiple IRR: A Modified Capital Amortization Schedule (MCAS) Method for Non-Normal Cash flow (NNCF) to Obtain a Unique IRR 


    The problem of multiple IRR remained unresolved for almost a century. This problem is associated only with some of the non-normal net cash flow (NNCF) that wrongly includes reinvestment income as income or benefit stream. The reinvestment income, which is not a benefit from the investment or project under analysis, causes the multiple IRR problem. This is often misinterpreted as problem of IRR but its neither a problem with IRR nor NPV. It is a problem associated with some NNCF data and the failure to update the discounted cash flow (DCF) or capital amortization schedule (CAS) methods to handle such problem.
    Using NNCF data, analyses are conducted with special emphasis on topics such as:

    a.      A modified CAS (MCAS) method that eliminates multiple IRR associated with NNCF data;
    b.      Multiple IRR problem and the Descartes rule of sign and Norstrom’s criteria;
    c.      A NNCF data with a unique IRR under DCF / CAS methods vs IRR by MCAS method;
    d.      Resolving the problem of multiple IRR by MCAS Method Versus MIRR; and
    e.      A critical review of the GIRR and AIRR Methods to Estimate NNCF.
    The salient findings of the present analysis are:
    a.      The MCAS method, presented in this paper, identifies and eliminates the reinvestment income associated with NNCF investments (with positive opening balance in one or more years in the CAS) from the benefit stream;
    b.      This new method overcomes the multiple IRR problem and leads to a unique and real IRR; The effectiveness of MCAS to handle the NNCF data is illustrated with numerical analysis;
    c.      The assumption of reinvestment at IRR or at hurdle rate in NPV are false assertions in the cases of normal NCF and some of the NNCFs. However, such reinvestment is evident only with NNCFs with positive opening balance in one or more years under the CAS.
    d.      The reinvestment income under the benefit stream causes multiple IRRs and multiple NPVs too. As NPV is a static point estimate (at hurdle rate) the multiple NPVs are not exposed. Without eliminating the reinvestment income, none of the criterions viz. NPV, IRR or MIRR, is useful as a decision criterion. Neither NPV or MIRR is a preferred criterion, under such circumstances, as recommended in some published works.
    e.      The MCAS method is appropriate for both normal NCF and NNCF as illustrated in this paper. CAS or DCF method is appropriate only for normal NCF investments.
    f.       Even when there is no multiple IRRs with some NNCFs under DCF/CAS method, the MCAS method estimated IRR or NPV, without reinvestment income, are different from that of the DCF/CAS estimated IRR and NPV. For a consistent estimate of IRR and NPV, the MCAS method is most appropriate both for NCF and NNCF investments.
    g.      The generalized IRR (GIRR) and the Average IRR (AIRR) are also not appropriate estimates for NNCF and they are not NCF consistent as discussed in this paper. The problem of multiple IRR associated with the popular cases of NCF investments used in GIRR and AIRR, are also resolved now.
    In conclusion, the MCAS method resolves the problem of multiple IRR and leads to a unique IRR that is real and NCF-consistent. Neither the NPV nor the MIRR could resolve the problem of multiple IRR.

  • Interest in ESG Investing Poised to Grow Further in Asia Pacific

    Source: Chan Fook Leong, CFA
    Date Submitted: 10 Jul 2017
    Views: 2399
    Downloads: 0
    • CFA Institute further extends ARX ESG Investing Series to Singapore to discuss motivations for ESG integration in the region.
    • Panelists from S&P Dow Jones Indices, City Developments Ltd., ADL Infra Capital Myanmar, and ESGuru spoke to a full house of CFA Institute members and local practitioners on developments in green finance.
    • Participants concluded that despite challenges, green finance would continue to attract investor interest; supply of green instruments needs to catch-up.
    • Social and governance considerations still in their infancy in the region.
    • The question of alpha potential inconclusive.
    Dr. Tony Tan, CFA, head, global society advocacy engagement at CFA Institute kicked off the May 11, 2017 lunch-time talk entitled ‘Is green finance a fad? Or does it possess alpha potential?’ The event, organized by CFA Institute and CFA Society Singapore follows the first of the ARX ESG Investing Series, hosted in Hong Kong. This series has been developed in response to demand for ESG-related research on research platform, Asia-Pacific Research Exchange (
  • 2016: A Quantum Leap for Indian Corporate Bond Market

    Source: Shagun Thukral, CFA
    Date Submitted: 20 Jun 2017
    Views: 3428
    Downloads: 52
    This paper was published in the Research Bulletin, The Institute of Cost Accountants of India, Vol. 43, No.I, April 2017 issue.  The paper seeks to establish 2016 as a turning point in the development of the corporate bond market in India while identifying the factors, using the RBI's 7i Framework, that have contributed to this push and where there remains room for further improvement.
  • Divided we fall, distributed we stand. - The professional accountant’s guide to distributed  ledgers and  blockchain

    Source: Narayanan Vaidyanathan
    Date Submitted: 20 Jun 2017
    Views: 654
    Downloads: 0
    A distributed or shared ledger is a digital database of records. These records contain information relevant to a group of participants within a network.

    In a distributed ledger all participants are looking at a common view of the records. This is in contrast to a typical situation currently where participants (for example, in different organisations) are looking at different databases that are independently managed and updated.

    As Distributed Ledger Technology (DLT) matures, the shared ledger’s common view of records and transparency of transaction history could reduce reconciliation across different databases and drive significant efficiencies. Business processes that are characterised by inefficiencies (eg trade finance), or exist because of a lack of trust (eg Know Your Customer requirements in financial services) or poor supply chain visibility (eg for global garment supply chains) are all key areas for distributed ledger applications.

    This report introduces and explores the concept of distributed ledgers, examines its commercial potential and how this relates to different aspects of professional accountancy.
  • Fintech - Transforming Finance

    Source: Jimmy Greer
    Date Submitted: 20 Jun 2017
    Views: 952
    Downloads: 0

    Financial Technology (FinTech) is here – sweeping through finance and, if some are to be believed, threatening traditional edifices that have stood for centuries.

    This great surge is being fronted by a host of new start-ups taking their lead from the big tech innovators. Their maverick approach is helping to push the FinTech industry into new territory across the financial services landscape, raising billions of dollars and worrying the incumbents.

    So what are the main trends and driving forces shaping FinTech today? Fintech – transforming finance explores the features of this new landscape, highlighting the many ways in which this revolution is taking place.

    For professional accountants, this new terrain will provide many opportunities as it permeates deeper and deeper into the fabric of society. From the promise of blockchain, to the demands of valuation in a digital era, finance more than ever needs an experienced, knowledgeable guide to make the most of the opportunities ahead.

  • Two insightful reports on Fintech and Distributed Ledger Technology (DLT) by Financial Services Development Council (FSDC)

    Source: Financial Services Development Council (FSDC)
    Date Submitted: 13 Jun 2017
    Views: 1938
    Downloads: 0
    Given most of the FinTech innovations, in particular the DLT, are developed for providing services directly to consumers, FinTech has initially been regarded as disruptive to the established financial institutions. However, a more recent development is that increasingly FinTech innovations are developed by, and in collaboration with, the well established incumbents in the financial sector. There are two very insightful reports on FinTech and DLT published by the FSDC in May 2017; which covers extensively the following areas including cybersecurity, payment and securities settlement, digital ID and KYC utility, WealthTech and InsurTech (including data analytics, automation and artificial intelligence), RegTech as well as Distributed Ledger Technology.  

    Attached are the two links to these two reports by FSDC.
  • The Finance Industry and Educational Providers Need Tight Relationships

    Source: Dan Daugaard
    Date Submitted: 12 Jun 2017
    Views: 200
    Downloads: 7
    A new CFA Institute study predicts large scale trends will have a significant impact on the investment industry. The landscape is expected to change dramatically and new skill sets will be necessary for investment professionals to be successful in this new environment. This is likely to produce fresh challenges for organisations providing education to the investment industry. They will need to adapt and construct educational services relevant for the industry of tomorrow. Some are evidently already moving towards a more engaged role. 
  • Bangladesh National Budget Review FY'18

    Source: EBLSL Research Team
    Date Submitted: 04 Jun 2017
    Views: 1089
    Downloads: 136
    The 46th National Budget of Bangladesh and 11th by Finance Minister AMA Muhith has been proposed on 1st June, 2017. Proposed budget size for FY ’18 is BDT 4002.66 bn which is 18.0% of GDP. This is the largest budget in the history of Bangladesh. Target Revenue is BDT 2879.91 bn caused a deficit amounting to BDT 1122.75 bn which will be financed through domestic sources (BDT 603.52 bn) and External Borrowings (BDT 519.24 bn).
  • Beauties of the Emperor: Investigation of an Opaque Stock Market Bailout   

    Source: Yeguang Chi, Xiaoming Li
    Date Submitted: 26 May 2017
    Views: 609
    Downloads: 9

    During the 2015 stock market crash, the Chinese government conducted an opaque bailout by injecting over ¥1.25 trillion ($200 billion) into the stock market. Sixty-three out of 1,406 government-purchased companies actively announced their bailout status in August 2015. The other government-purchased companies passively disclosed their bailout status through earnings reports in October 2015. We find a significantly positive market response to the first wave of active announcements of government bailout. Following the second wave of passive disclosure, the positive response deteriorated and eventually disappeared. Finally, retail investors reacted slowly and eventually overreacted to the bailout news, whereas institutional investors reacted promptly to profit from the opportunity. 

  • Practitioner's Brief (video): ​The Power of Private Information

    Source: Research Gate
    Date Submitted: 25 May 2017
    Views: 1400
    Downloads: 0
    Despite a recent crackdown on insider trading in China an assumption persists regarding the relative information inefficiency and asymmetry of less developed markets. Researcher Chi asks: How much is private information exploited in a less developed financial market like China?
    As it turns out, quite a lot.
  • Valuation Insights - India Edition, May 2017

    Source: Varun Gupta
    Date Submitted: 09 May 2017
    Views: 2613
    Downloads: 0

    Valuation Insights is a quarterly e-newsletter that provides you with the latest news from Duff & Phelps and the trends and changes in valuation and accounting that could affect your business transactions in Asia.

    In this edition, our top stories cover the Financial Accounting Standards Board issuing an Accounting Standards Update, robust fair value measurement, the International Valuation Standards Council releasing the 2017 edition of its International Valuation Standards, and a recent Duff & Phelps study about fairness opinions.

    We will also look at important Duff & Phelps reports and articles, including a recorded forum presentation by Professor Damodaran and the Duff & Phelps Global Regulatory Outlook 2017.

  • Bond market boom? Hong Kong's latest trading link set to spur $10 trillion market

    Date Submitted: 24 Mar 2017
    Views: 689
    Downloads: 0
    WiC's latest review of the key business stories from China
  • Three Arrows of "Abenomics" and the Structural Reform of Japan: Inflation Targeting Policy of the Central Bank, Fiscal Consolidation, and Growth Strategy

    Source: Yoshino, Naoyuki, aghizadeh-Hesary, Farhad
    Date Submitted: 27 Feb 2017
    Views: 623
    Downloads: 5
    Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad | August 2014
  • Fiscal Policy and Inclusive Growth in Advanced Countries: Their Experience and Implications for Asia

    Source: Heshmati, Almas, Kim, Jungsuk, Park, Donghyun
    Date Submitted: 27 Feb 2017
    Views: 351
    Downloads: 1
    Heshmati, Almas; Kim, Jungsuk; Park, Donghyun | June 2014
  • CSR Practice and Sustainable Business Performance: Evidence from the Global Financial Centre of China

    Source: Tai Min Wut, Artie Ng
    Date Submitted: 17 Feb 2017
    Views: 1071
    Downloads: 7
    The Hong Kong Special Administrative Region of China (Hong Kong) has long been positioned not only as an international capital market but also as the global financial centre for China. To position themselves for overseas expansions, major enterprises in China are now listed with the Stock Exchange of Hong Kong and adopt internationally accepted corporate practices. In particular, there have been emphases by multinationals on Corporate Social Responsibility (CSR) practices for the potential benefits of enhanced business performance as demonstrated in prior studies. The aim of this paper is to explore the relationship between business performance and CSR practices among listed companies in Hong Kong. We have investigated and made comparisons between two groups of listed companies in Hong Kong -- those included in the Hang Seng Corporate Sustainability index and the other major ones in Hong Kong not included in the Index. It is found that there is a significant difference between the two groups in the sample. A direct association between adoption of CSR practice and sustainable business performance in financial aspects is observed over an extended period of time. However, we argue that there is not yet sufficient disclosure in relation to the quality of their overall CSR and sustainability performance.
  • The Pragmatic Governance of Chinese P2P Chaos: Improvement in Supervision Philosophy and Legal Arrangement

    Source: Fan Zhang
    Date Submitted: 06 Feb 2017
    Views: 110
    Downloads: 7
    As developments in Internet finance coupled with deregulation and the growth of the financial media have tended to reduce transaction costs and informational asymmetries, the significance and exclusivity of China’s traditional financial institutions as financial intermediaries have been identified as factors in the country’s rapid economic development. In this context, peer-to-peer lending (P2P) has emerged as a type of Internet financing that creates a direct linkage between borrowers and investors via online platforms that is replacing traditional financial intermediaries and effectively bridging the gap between formal and informal finance. Although the Chinese P2P industry provides financial services, it also brings disorder and chaos, particularly in the context of the “dualistic model” of the Chinese financial system. In this context, this article reviews the history, development and advantages/disadvantages of three P2P modes and then recommends changes to the regulatory philosophy and legal arrangements for the P2P industry by constructing internal risk controls and strong regulations in the external environment.
  • South Asia Project Brief: Nepal Rural Finance Sector Development Cluster Program

    Source: Asian Development Bank
    Date Submitted: 04 Feb 2017
    Views: 470
    Downloads: 5
    Asian Development Bank | May 2015
  • Financial Inclusion, Financial Regulation, and Financial Education in Thailand

    Source: Tambunlertchai, Kanittha
    Date Submitted: 03 Feb 2017
    Views: 518
    Downloads: 4
    Tambunlertchai, Kanittha | July 2015
  • The Fiscal Risk of Local Government Revenue in the People’s Republic of China

    Source: Fan, Ziying, Wan, Guanghua
    Date Submitted: 03 Feb 2017
    Views: 120
    Downloads: 1
    Fan, Ziying; Wan, Guanghua | April 2016
  • Financial Sector Legislative Reforms Commission (FSLRC) & Financial Sector Regulation in India

    Source: Bhagwati, Jaimini, Khan, M. Shuheb, Bogathi, Ramakrishna Reddy
    Date Submitted: 02 Feb 2017
    Views: 1807
    Downloads: 6
    Bhagwati, Jaimini; Khan, M. Shuheb; Bogathi, Ramakrishna Reddy | June 2016
  • Optimal Credit Guarantee Ratio for Asia

    Source: Yoshino, Naoyuki , Taghizadeh-Hesary, Farhad
    Date Submitted: 01 Feb 2017
    Views: 503
    Downloads: 3
    Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad | July 2016
  • What Happens If Donald Gets In?

    Source: Matthew Peter
    Date Submitted: 28 Dec 2016
    Views: 213
    Downloads: 0
    As the US Presidential elections approach, polls are showing that the two candidates are running neck and neck. A Trump victory, that seemed so unlikely three weeks ago, is now a fifty/fifty bet. What would happen to the US and the global economy in the advent of a Trump administration?
  • US Presidential Election: Market Reactions and Economic Consequences

    Source: QIC
    Date Submitted: 28 Dec 2016
    Views: 408
    Downloads: 0
    America’s marathon presidential election, which kicked off last year with the party primaries, remains unresolved at the time of writing. However, Republican Party candidate Donald Trump has significantly outperformed pollsters’ expectations by leading in a clutch of swing states including Florida, North Carolina, and Michigan.
  • China Bears to Calm Down

    Source: QIC
    Date Submitted: 28 Dec 2016
    Views: 225
    Downloads: 0
    Then paramount leader Deng Xiaoping’s launch of China’s Open Door policy in 1978, after decades of Maoist isolation, ranks among the seminal geo-political developments of the past half century.
  • Australia Maintains Credit Rating But Fiscal Policy is a Drag: Ideas for a Better Budget Mix

    Source: QIC
    Date Submitted: 28 Dec 2016
    Views: 232
    Downloads: 0
    On the heels of a sharp public reaction to last year’s budget, the Federal Government’s prescription this year focused on growth and assistance for low-to-middle income earners. There was a small expansion in the deficit but the budget is still projected to return to surplus by 2019-20. In our view there is not much good news, but also no real bad news. Here is our analysis.
  • Potential of market discipline in Pakistan: The bank depositors’ perspective

    Source: Nawazish Mirza, PhD, Bushra Naqvi, PhD, FRM, Kumail Rizvi, PhD, CFA, FRM, Birjees Rahat
    Date Submitted: 01 Dec 2016
    Views: 591
    Downloads: 0
    This research was funded by a substantial grant from USAID and explores potential of market discipline in Pakistan's commercial banking sector.
  • AFM – A Tale of Two Consequences: Intended and Unintended Outcomes of the Japan TOPIX Tick Size Changes

    Date Submitted: 20 Nov 2016
    Views: 184
    Downloads: 1
    We study the mechanisms that affect how securities are traded on an exchange, before delving into the tick size changes on the TOPIX 100 index names made by the Tokyo Stock Exchange (TSE) on Jan-14-2014 and Jul-22-2104. The intended consequence of the TSE change is price improvement and shorter time to execution. An unintended effect might be the reduction in execution sizes, which would then mean that institutions with large orders would have greater difficulty in sourcing liquidity.
  • AFBC - Slack-based directional distance function in the presence of bad outputs: Theory and Application to Vietnamese Banking

    Source: Manh D. Pham, Valentin Zelenyuk
    Date Submitted: 15 Nov 2016
    Views: 505
    Downloads: 7
    Slack-based directional distance function in the presence of bad outputs: Theory and Application to Vietnamese Banking
  • ESG Reporting and Firm Performance in Indian economy

    Source: Dipasha Sharma, Shagun Thukral , Sonali Bhattacharya
    Date Submitted: 09 Nov 2016
    Views: 2708
    Downloads: 35
    The primary motive of any firm has always been to generate profits and maximize value for its shareholders. However with global economic crisis unfolding one after the other since the start of the millennium there has been a shift in the focus of governments, regulators, investors and corporations to a more “socially responsible” behavior by firms in addition to profit maximization. This includes the importance given by firms to areas such as sustainability, environmental, social and governance (ESG) concerns and ethical considerations. This has generated lot of research interest in comparison of performance of firms that do show due consideration to these factors versus those that do not. In this study we highlight the gaps in the existing literature and follows econometric modelling to discuss following hypothesis: Hypothesis 1: High Level of Corporate Sustainable Performance in terms of Environmental, Social and Governance will be associated with high financial performance Hypothesis 2: Size of the firm will moderate the relationship between Corporate Sustainable Performance in terms of Environmental, Social and Governance and financial performance. Hypothesis 3: Industry classification of the firm will moderate the relationship between Corporate Sustainable Performance in terms of Environmental, Social and Governance and financial performance.
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 8

    Source: Wong Yuen Man, Wong Cheuk Fun
    Date Submitted: 07 Nov 2016
    Views: 440
    Downloads: 0
    Humans always learn from history and our students should also learn from the past. This is the first time a case study is used as the main topic in the RMBI Newsletter series.London Whale Risk in 2012 is chosen as the topic of this chapter. This issue mainly focuses on the risks involved, including operational risks, analysis of VAR modeling aswell asthe influence of the Basel regulatory stan­ dard.
  • Do Franking Credits Matter? Exploring the Financial Implications of Dividend Imputation

    Source: Andrew Ainsworth, Graham Partington, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 571
    Downloads: 3
    Examines the implications of dividend imputation for stock prices and returns, cost of capital, project evaluation, capital structure, payout policy and investor portfolios. it is argued that its removal would be detrimental.
  • MySuper: A New Landscape for Default Superannuation Funds

    Source: Warren Chant, Mano Mohankumar, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 389
    Downloads: 1
    This report examines the Australian superannuation default fund landscape following the introduction of MySuper at the beginning of 2014.
  • MySuper vs. KiwiSaver: Retirement Saving for the Less Engaged

    Source: Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 640
    Downloads: 5
    Comparison of New Zealand's KiwSaver with Australia's MySuper default pension funds.
  • Delegation, trust and defaulting in retirement savings: Perspectives from plan executives and members

    Source: Adam Butt, Scott Donald, Doug Foster, Susan Thorp, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 559
    Downloads: 3
    Australian superannuation fund members are surveyed to gauge motivations behind defaulting, as well as their wants and needs from their pension fund. Comparison is made with findings from interviews of fund executives.
  • MySuper: A Stage in an Evolutionary Process

    Source: Adam Butt, Scott Donald, Doug Foster, Susan Thorp, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 205
    Downloads: 0
    Reports on interview with Australian superannuation fund executives about how their organisations responded to the MySuper regulatory framework for default retirement savings funds that was put in place at the beginning of 2014.
  • CIFR Project SUP002 on Default Superannuation Funds: Summary of Main Findings and Implications

    Source: Adam Butt, Scott Donald, Doug Foster, Susan Thorp, Geoff Warren
    Date Submitted: 07 Nov 2016
    Views: 300
    Downloads: 0
    Summary of CIFR project examining the ‘MySuper’ default superannuation fund regime. Outputs includes 5 working papers plus multiple journal articles; and includes industry analysis, interviews with executives and a member survey.
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 9

    Source: Wong Yuen Man, Kwong Wing Man, Chan Ling Fung, Lo Ka Chun, Ng Wing Leong, Tam Kiu Fai, Lee Tung Kiu, Lee Kwok Ho
    Date Submitted: 02 Nov 2016
    Views: 668
    Downloads: 0
    In this issue, we discuss about the current situation of Hong Kong's Logistics Industry, including ogictics business cycle and its embbeded risk, big data and new technologies, as well as the future development and suggestions to the logistics industry. Basel III, the histroy and its evolution, impact on locan banks and lessons leanred from overseas.
  • Crises and Central Banks

    Source: Ishwar Chidambaram
    Date Submitted: 02 Nov 2016
    Views: 3725
    Downloads: 288
    A post-crisis look at the increasingly fragmented monetary policies of global Central Banks and the implications for Main Street
  • HKUST Risk Management and Business Intellegence (RMBI) Newsletter Issue 10

    Source: LEUNG Chung Wai , HAN Tianwei , CHEUNG Ngan Yeung , NG Wing Leong , SIU Hon San
    Date Submitted: 27 Oct 2016
    Views: 681
    Downloads: 0
    Shanghai-Hong Kong Stock Connect Review: How to Apply Big Data Analytics to Risk Management? Shanghai-Hong Kong Stock Connect is a pilot program launched on 17 November 2014 which links the stock markets in Shanghai and Hong Kong. Under the program, investors in Hong Kong and Mainland China can trade and settle shares listed on the other market via the exchange and clearing house in their home market. Under this arrangement, Hong Kong and foreign investors can trade stocks listed on the Shanghai Stock Exchange (SSE) through Northbound trading while Mainland investors can trade stocks listed on the Hong Kong Stock Exchange (SEHK) through Southbound trading. How to Solve the Problem of China’s “Ghost Towns”? In recent years, China's economy has taken off and there is a boom in the financial industry, so the government has shifted the core of reform to urbanization. Investors have invested money in the property market. The real estate industry, which many have been optimistic about, should have bloomed under the current reforms in China, but the result is the widely-known term "Ghost Town".
  • AFBC - The Effect of Monetary Policy on Bank Wholesale Funding

    Source: Hyun-Soo Choi, Dong Beom Choi
    Date Submitted: 20 Oct 2016
    Views: 515
    Downloads: 6
    AFBC-The Effect of Monetary Policy on Bank Wholesale Funding
  • A new breed of adviser for the modern-day enterprise

    Source: Global Forum for SMEs
    Date Submitted: 14 Oct 2016
    Views: 685
    Downloads: 1
    This discussion paper presents views and recommendations on the growing implications, for both the finance profession and aspiring entrepreneurs, of the changing business landscape.
  • Making The Whole Greater Than The Sum Of Its Parts

    Source: Eddie Chan
    Date Submitted: 14 Oct 2016
    Views: 980
    Downloads: 10
    The investigative work of Professional Conduct has always been associated with words like secretive, mysterious, or private. That is only part of our story in Professional Conduct. Read on to find out more about our work in Professional Conduct and volunteering opportunities to help make a meaningful difference -- the CFA brand is important to protect, so is market integrity and ethical standards.
  • AFBC - Differences in the Reliability of Fair Value Hierarchy Measurements: A Cross-Country Study

    Source: Kevin Ow Yong,Chu Yeong Lim,Jeffrey Ng,Gary Pan
    Date Submitted: 25 Sep 2016
    Views: 491
    Downloads: 12
    Submission of conference paper to the 29th Australasian Finance and Banking Conference (AFBC) to be considered for the CFA Institute Research Awards available to papers presented at the conference.
  • AFBC-Asset diversification and efficiency: Evidence from the Chinese banking sector

    Source: Kai Du, Andrew C. Worthington, Valentin Zelenyuk
    Date Submitted: 20 Sep 2016
    Views: 624
    Downloads: 12
    This paper investigates the impact of earning asset diversification on Chinese bank efficiency from 2006 to 2011. To do so, we adapt the Simar and Wilson (2007) (Journal of Econometrics) approach to panel data context so that approach allows for technology change over time. Regression results reveal that increasing the asset share of other earning assets (including securities and derivatives) is positively associated with bank efficiency. Decreasing the share of nonearning assets in total assets or increasing total equity has a similar impact. Our results also suggest that financial reforms currently being undertaken in China, including removing the regulatory requirement concerning the ratio of loans to deposits (a new draft amendment to the existing commercial banking law) and interest rate liberalization (a proposed draft amendment), are likely to induce a significant positive effect on bank efficiency in China.
  • Frontier Special Report - Construction powers growth in credit to Private Sector

    Source: Frontier Research
    Date Submitted: 11 Sep 2016
    Views: 531
    Downloads: 6
    An Analysis that looks at the role the Construction Sector in Sri Lanka has played in fueling credit growth in the economy. The report presents some key charts to illustrate key recent developments.
  • Tokyo as an International Financial Centre

    Source: Laurel Teo, CFA
    Date Submitted: 18 Jul 2016
    Views: 653
    Downloads: 17
    PPT presentation pertaining to the official launch of the research paper by the Japan CFA Society on the 15th of July 2016.
  • 東京は国際金融センターになれるか?

    Source: 原田 武嗣, CFA, 瀬尾 周一, CFA
    Date Submitted: 18 Jul 2016
    Views: 654
    Downloads: 15
    Research paper by the Japan CFA Society publicly released on the 15th of July 2016.
  • Tokyo as an International Financial Centre

    Source: Taketsugu Harada, CFA,Shuichi Seo, CFA
    Date Submitted: 18 Jul 2016
    Views: 722
    Downloads: 15
    Research paper by the Japan CFA Society publicly released on the 15th of July 2016.
  • Domestic Debt Market in India

    Source: Dr. Vighneswara Swamy, Professor of Finance, IBS-Hyderabad, India
    Date Submitted: 23 Jun 2016
    Views: 826
    Downloads: 23
    As India is projected to be the world’s most populous country by 2025, the growing needs of the economy, with expanding population, in the recent years have placed intense stress on physical infrastructure. In order to meet the deficit in the provision of infrastructure, mid-term appraisal of the twelfth plan suggests that to attain 9 percent real Gross Domestic Product (GDP) growth rate, infrastructure investment should be on average almost 10 percent of GDP during the Twelfth Plan which translates into INR 65795 billion (about One trillion dollar). Though there has been a progressive involvement of the private sector in infrastructure investments, the government has to play a proactive role in developing a well-structured platform for raising the required investments in Indian infrastructure. Given the huge demand of US$ 1 trillion for infrastructure investments during the 12th plan period, there is a greater emphasis on creating a domestic debt market with special focus on bond market as an alternate source of funding for bank finance, which is faced with myriad problems of stress assets, asset restructuring, etc.
  • 投资者向审计师 寻求更大价值

    Source: Vincent Papa, CFA
    Date Submitted: 14 Jun 2016
    Views: 289
    Downloads: 0
    This article appears on CFA Institute hedge fund journal 2013 issue, season 2. The original article appears on CFA Magazine, July/August 2013, Vol. 24, No. 4: 8.
  • 书评: 美联储与金融危机

    Source: Marc L. Ross, CFA
    Date Submitted: 14 Jun 2016
    Views: 510
    Downloads: 1
    This article appears on CFA Institute hedge fund journal 2013 issue, season 1.
  • Elements of an Investment Policy Statement for Institutional Investors

    Source: CFA Institute
    Date Submitted: 13 Jun 2016
    Views: 582
    Downloads: 4
    This paper appeared on CFA Institute's website in May 2010.
  • Elements of an Investment Policy Statement for Individual Investors

    Source: CFA Institute
    Date Submitted: 13 Jun 2016
    Views: 509
    Downloads: 1
    This paper appeared on CFA Institute's website in May 2010.
  • Periodic Reporting for Retail Investment Funds in Asia Pacific—An Investor’s Perspective

    Source: Lee Kha Loon, CFA
    Date Submitted: 12 Jun 2016
    Views: 513
    Downloads: 2
    This paper appeared on CFA Institute's website in January 2013.
  • A Comprehensive Business Reporting Model: Financial Reporting for Investors

    Source: CFA Institute
    Date Submitted: 12 Jun 2016
    Views: 534
    Downloads: 3
    This paper appeared on CFA Institute's website in July 2007.
  • eXtensible Business Reporting Language: A Guide for Investors

    Source: CFA Institute
    Date Submitted: 12 Jun 2016
    Views: 519
    Downloads: 2
    This paper appeared on CFA Institute's website in April 2009
  • Financial Reporting Disclosures: Investor Perspectives on Transparency, Trust, and Volume

    Source: Mohini Singh, ACA , Sandra J. Peters, CPA, CFA
    Date Submitted: 12 Jun 2016
    Views: 616
    Downloads: 5
    This paper appeared on CFA Institute's website in July 2013.
  • Financial Crisis Insights on Bank Performance Reporting (Part 2): Relationship between Disclosed Loan Fair Values, Impairments, and the Risk Profile of Banks

    Source: Vincent T. Papa, PhD, CFA, Sandra J. Peters, CPA, CFA
    Date Submitted: 12 Jun 2016
    Views: 601
    Downloads: 8
    This paper appeared on CFA Institute's website in July 2014.
  • Financial Crisis Insights on Bank Performance Reporting (Part 1): Assessing the Key Factors Influencing Price-to-Book Ratios

    Source: Vincent T. Papa, PhD, CFA, Sandra J. Peters, CPA, CFA
    Date Submitted: 12 Jun 2016
    Views: 695
    Downloads: 8
    This paper appeared on CFA Institute's website in July 2014.
  • Forward-Looking Information: A Necessary Consideration in the SEC’s Review on Disclosure Effectiveness: Investor Perspectives

    Source: Sandra J. Peters, CPA, CFA, Kurt N. Schacht, JD, CFA
    Date Submitted: 12 Jun 2016
    Views: 463
    Downloads: 2
    This paper appeared on CFA Institute's website in July 2014.
  • Addressing Financial Reporting Complexity: Investor Perspectives

    Source: Mohini Singh, ACA, Sandra Peters, CPA, CFA, Kurt N. Schacht, JD, CFA
    Date Submitted: 12 Jun 2016
    Views: 530
    Downloads: 2
    This paper appeared on CFA Institute's website in January 2015.
  • Analyzing Bank Performance: Role of Comprehensive Income

    Source: Vincent T. Papa, PhD, CFA, Sandra J. Peters, CPA, CFA, Kurt N. Schacht, JD, CFA, Siquan Lu
    Date Submitted: 12 Jun 2016
    Views: 805
    Downloads: 7
    This paper appeared on CFA Institute's website in February 2015.
  • Materiality: Investor Perspectives

    Source: Mohini Singh, ACA, Sandra J. Peters, CFA, CPA
    Date Submitted: 12 Jun 2016
    Views: 557
    Downloads: 2
    This paper appeared on CFA Institute's website in December 2015.
  • Watching the “Top Line”: Areas for Investor Scrutiny on Revenue Recognition Changes

    Source: Vincent Papa, PhD, CPA, CFA
    Date Submitted: 12 Jun 2016
    Views: 525
    Downloads: 1
    This paper appeared on CFA Institute's website in April 2016.
  • User Perspective on Financial Instrument Risk Disclosures Under International Financial Reporting Standards

    Source: Vincent Papa, PhD, CPA, CFA
    Date Submitted: 12 Jun 2016
    Views: 252
    Downloads: 1
    This paper appeared on CFA Institute's website on May 2016.
  • Planning, Budgeting and Forecasting: An eye on the future

    Source: O'Mahony, J., Lyon, J.
    Date Submitted: 10 Jun 2016
    Views: 717
    Downloads: 12
    A global report (first of three) jointly commissioned by the ACCA and KPMG to evaluate how the Enterprise Performance Management capability within finance functions is providing the business with insightful profitability and cost analysis through appropriate people, processes and technology.
  • Ending Late Payment: Part 3 - Reflection on the evidence

    Source: Schizas, M.
    Date Submitted: 10 Jun 2016
    Views: 616
    Downloads: 3
    This is the third of a series of three reports on the problem of late payment and how businesses and governments can work together to alleviate it. It summarises the ACCA’s findings on this important issue and is a call to action for governments, financial services firms, large corporates and small businesses.
  • Ending Late Payment: Part 2 - What works?

    Source: Schizas, M.
    Date Submitted: 10 Jun 2016
    Views: 645
    Downloads: 5
    This is the second of a series of three reports on the problem of late payment and how businesses and governments can work together to alleviate it. It brings together evidence from a wealth of ACCA-commissioned publications and other research as well as 36 case studies involving ACCA members around the world to help define good practice in both business and policy.
  • Ending Late Payment: Part 1 - Taking stock

    Source: Schizas, M.
    Date Submitted: 10 Jun 2016
    Views: 667
    Downloads: 3
    This is the first of a series of three reports on the problem of late payment and how businesses and governments can work together to alleviate it. It combines an extensive literature review with quantitative data from ACCA’s member surveys to correctly define late payment, trace its precise origins and document its impact on the global economy.
  • Performance Reporting: An eye on the facts

    Source: O'Mahony, J., Lyon, J.
    Date Submitted: 08 Jun 2016
    Views: 590
    Downloads: 5
    Performance Reporting at its best should enable a business to link its operational activity and decision making with the attainment of its strategy. It gives organisations the essential information to make more confident and effective decisions, focuses the attention of management on activities that truly matter, and provides a consistent view of actual performance across the business. A joint KPMG-ACCA report examines the form and nature of performance reporting, and how such reporting perceived by CFOs.
  • The Valuation Effects of Prime Rate Revisions: Is There an Advantage of Being First?

    Source: Asjeet S. Lamba, Mohamed Ariff
    Date Submitted: 07 Jun 2016
    Views: 572
    Downloads: 0
    US banks making prime rate revisions are known to suffer stock price declines, which is consistent with the Stiglitz-Weiss adverse selection theory, given the relative stickiness of interest rates. If banks suffer price declines, then why are some banks consistent leaders when revising prime rates? This research question is the focus of our paper and is examined in the relatively concentrated banking system of Singapore. Lead banks in Singapore initiating a large number of rate increases earned an average abnormal return of 5.2%, while non-lead banks also experienced positive abnormal returns of 3.9%, a result not in agreement with US-specific evidence. We argue that the rate increases (decreases) resulting in a significant stock price increase (decrease) for lead banks are consistent with a valuation effect in a concentrated banking system. Our results could be explained as a valuation effect from anticipated higher profits or as reward for being first. The first mover advantage may thus also have signaling value on quality.
  • 高频交易之乱局—市场激励机制的扭曲导致部分高频交易策略误入歧途

    Source: Dennis Dick, CFA
    Date Submitted: 07 Jun 2016
    Views: 301
    Downloads: 6
    This article appears on CFA Institute hedge fund journal 2014 issue, season 1. The original article appears on CFA Magazine, January/February 2013 | Vol. 24 | No. 1 | 2 pages
  • 浅谈中国对冲基金的过去,现在和未来

    Source: 费飞
    Date Submitted: 07 Jun 2016
    Views: 479
    Downloads: 2
    This article appears on CFA Institute hedge fund journal 2014 issue, season 1.
  • 国债期货的现货基础

    Source: 孙志鹏, CFA
    Date Submitted: 07 Jun 2016
    Views: 330
    Downloads: 2
    This article appears on CFA Institute hedge fund journal 2014 issue, season 1.
  • Investors Gain As India Tightens Reins on Asset Managers and Financial Advisers

    Source: Alexander Flatscher
    Date Submitted: 06 Jun 2016
    Views: 261
    Downloads: 0
    This is a blog posted on CFA Institute's website on 2 March 2012.
  • AIJ Fallout Casts Harsh Spotlight on Japan’s Pension Fund Managers

    Source: Alexander Flatscher
    Date Submitted: 06 Jun 2016
    Views: 278
    Downloads: 0
    This is a blog posted on CFA Institute's website on 7 March 2012.
  • Insider Trading: Is China Serious about Cleaning Up Its Capital Market?

    Source: Alan Lok
    Date Submitted: 05 Jun 2016
    Views: 702
    Downloads: 1
    This is a blog posted on CFA Institute's website on 25 February 2015.
  • Portfolio Pumping in Singapore — What the Numbers Tell Us

    Source: Alan Lok
    Date Submitted: 05 Jun 2016
    Views: 659
    Downloads: 4
    This is a blog posted on CFA Institute's website on 27 December 2015.
  • China’s Circuit Breaker: Boon or Bane?

    Source: Alan Lok
    Date Submitted: 20 May 2016
    Views: 660
    Downloads: 10
    This is a blog posted on CFA Institute's website on 14 January 2016.
  • From Stocks and Bonds to Crowdfunding, China’s Capital Markets Regulatory Scene

    Source: Alan Lok
    Date Submitted: 20 May 2016
    Views: 693
    Downloads: 4
    This is a blog posted on CFA Institute's website on 3 February 2016.
  • China’s Money Market Reforms Aim to Stem Risk, Allow Funds to Thrive in Fintech Era

    Source: Alan Lok
    Date Submitted: 20 May 2016
    Views: 755
    Downloads: 12
    This is a blog posted on CFA Institute's website on 13 April 2016.
  • New Zealand: Seeking to be a World Leader Regardless of Limited Resources

    Date Submitted: 29 Mar 2016
    Views: 316
    Downloads: 5
    This commentary provides some information on financial research environment in New Zealand.
  • Identifying the Key Catalysts of the Indian Research Environment

    Date Submitted: 20 Mar 2016
    Views: 533
    Downloads: 12
    The findings of academic research carried out in developed markets such as India and published in scholarly journals are perceived to be remotely related to the real world of practitioners and moreover. Investment managers who apply scientific theory proven in developed market environment seldom get what they desire in developing markets. In a real world where investment practitioners look for actionable solution, academic scholars are perceived to complexify issues in their attempt to theorize real world problem by considering all possible manifestations and contingencies.
  • Board of Director Effectiveness and Earnings Conservatism: Preliminary Australian Analysis

    Source: Nigar Sultana, J-L-W. Mitchell Van der Zahn, Inderpal Singh
    Date Submitted: 24 Feb 2016
    Views: 584
    Downloads: 11
    Overarching objective is to examine influence of board of director effectiveness on the extent of earnings conservatism among Australian listed firms.