Thursday, October 27, 2016

Shenzhen Hong Kong Stock Connect (Latest News)

Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect) will be launched at the end of November.

Although the actual launch date is not announced yet, Li Xiaojia, CEO of Hong Kong Exchanges and Clearing (HKEX), said it is preferred to launch SZ-HK Stock Connect on one of the Monday at the end of November. 


On October 13, 2016, HKEX and Shenzhen Stock Exchange (SZSE) held an investor roadshow in Hong Kong, signaling the start of the international investor roadshows for SZ-HK Stock Connect. Li Xiaojia,, CEO of HKEX, announced along with Wang Hong, Vice Executive President of SZSE, that HKEX and SZSE will conduct a three week system test for the trading link between October 17, 2016 and November 9, 2016, and is set to finish in mid-November.

Why investors monitor closely Shenzhen Hong Kong Connect 


Brief Overview of SZ-HK Stock Connect

The daily quotas of Hong Kong Stock Connect and Shenzhen Stock Connect are CNY10.5Bn and CNY13Bn respectively. SZ-HK Stock Connect has no aggregate quota in its initial launch. SZ-HK Connect covers about 880 stocks, which include the constituent stocks of SZSE Component Index and SZSE Small-Midcap Innovation Index with market capitalization of more than CNY6Bn, and stocks listed on SZSE which the companies have issued both A and H shares. 

Hong Kong Stock Connect covers constituent stocks of Hang Seng Composite LargeCap Index and Hang Seng Composite MidCap Index, constituent stocks with market capitalization of more than HKD5Bn of Hang Seng Composite SmallCap Index, and stocks listed on HKEX which the companies have issued both A and H shares.

Impact to Hong Kong Stocks

Hong Kong stocks is relatively undervalued in comparison with Shenzhen stocks, as evident by Shenzhen A shares have an average historical P/E ratio of 40x while Hong Kong stocks have an average historical P/E ratio of 11x. Chinese investors are expected to use the southbound channel to invest in Hong Kong stocks. However, we expect that only the MidCap and SmallCap stocks in Hong Kong will benefit from the SZ-HK Stock Connect, and the effect on major indices will be limited since they have been included in the Shanghai-Hong Kong Stock Connect already. 

For the first time, the stock connect expands to constituent stocks with HKD5Bn market capitalization of Hang Seng Composite SmallCap Index, whose valuation ratio implies the stocks are relatively undervalued in comparison with those listed on SZSE. Funds are expected to flow into the MidCap and SmallCap stocks in Hong Kong, and these stocks are expected to benefit from the stock connect programme. However, the primary participants of A Shares market are retail investors, who are highly sensitive to market rumours. Therefore, we expect the SmallCap and MidCap stocks in Hong Kong to be more volatile in the future.

Source: PSPL (HK), HKSE, SZSE, SFC (HK)

The following stocks are the A+H shares. The final eligible stocks for SZ-HK Stock Connect will be announced by HKEX.


The following stocks are part of the constituent stocks of Hang Seng Composite SmallCap Index. The final eligible stocks for SZ-HK Stock Connect will be announced by HKEX.




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Monday, October 10, 2016

Read This before Invest in Phillip REITs ETF IPO


Many of our friends is asking How can they Subscribe the Phillip Reits ETF IPO - the full name is actually "Phillip SGX APAC ex-Japan REIT ETF"
(IPO = Initial Public Offering)

Whats the Benefit of this ETF, why not i just buy reits off the market?
- Yes, you can buy individual reits off the market, however sometimes if you want to have a diversified portfolio by have more Reits in your portfolio. This ETF consist of 30 Reits, which means by buying 1 ETF counter, you are owning 30 different reits. This means lower cost for you, instead of paying commission for purchasing 30 reits, now you just pay 1 time.

Quality REITs in Asia EX Japan
The ETF will weight and rebalance its investment basket based on the dividend payment of the REITs, ensuring only the top quality and highest dividend paying REITs are invested in, and poor performers weeded out. You can be assured of exposure to a diversified group of top 30 APAC ex-Japan REITs paying sustainable dividends.
Liquidity and Transparency
Being an ETF, the units can be traded in the exchange, which allows a higher level of liquidity compared to traditional unit trusts. The whole constituent list is also easily accessible allowing transparency.
Low Cost
As a passively managed fund, the annual management fee is only 0.50%. There are no sales charges applicable. (Brokerage charges may apply) 
Reputable Index Provider

SGX Index Edge, one of the reliable index providers in Asia manages the index. 
How often will i get Dividend
- Semi-Annually

How much is the Dividend Yield?
The fund target a gross Yield of 5.07%pa

1)      Able to use CPF or SRS to subscribe for this IPO?
Ans: NO.

2)      Are investors able to use ATMs to subcribe?
Ans: NO.

3)      Are investors able to EPS to cash trading account?
Ans: YES.

4)      Must the investors pass CAR/CKA for this ETF?
Ans: NO. This ETF is an Excluded Investment Product (EIP)

5)      What is the minimum number of shares to subscribe?
Ans: 1000 shares 

6)      Is there placement fee or commission?
Ans: NO.  Investors just pay the full amount of what he/she wants

7)      Then how I calculate the amount for the investor to transfer the funds?
Ans: 1000 x US$ 1.10 (max price) x 1.40 (indicative exchange rate) = SGD $ 1,540

8)      Can investors deduct existing USD$ from his/her KC/margin/custodian/financing accounts?

Ans: YES. 1000 x US$ 1.10 (max price) = USD$ 1,100.

Key Highlights from Fund Info Sheet
Methodology
 The Fund tracks the index which is a fundamentally weighted index that comprises the 30 highest total dividend paying Real Estate Investment Trust (REITs) in the Asia Pacific ex-Japan region
 Total dividends refer to each constituents’ trailing 12 month dividend per share (USD) multiplied by the free float number of outstanding shares
Membership
 Countries eligible for inclusion: Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore , South Korea, Taiwan and Thailand.
 Constituents are subject to a minimum free-float market capitalisation of US$ 300 million & a proportion of free-float market capitalisation greater than 20%. Maximum weight of a constituent will be 10%
 The fund has a high representation of the APAC ex Japan REITs universe (> 70 %) by market capitalisation
Key Benefits
 Low cost, easy access to a diversified and liquid basket of REITs across the Asia Pacific Region
 Tracks the performance of the 30 highest total dividend-paying REITs
 Offers investors significant dividend income paid semi-annually

Phillip SGX APAC ex-Japan REIT ETF has lodged its IPO preliminary prospectus with the Monetary Authority of Singapore (“MAS”) in conjunction with its plans to list its Units on SGX-ST Mainboard. Kindly be informed that we are offering the USD tranche only during this IPO offering period.

INFORMATION ON THE IPO:

The investment objective of the Fund is to seek to provide a high level  of  income  and  moderate  long-term  capital appreciation  by  tracking,  as  closely  as  possible,  before expenses,  the  performance  of  the  SGX  APAC  Ex-Japan Dividend  Leaders  REIT  Index  (the  "Index"). 

By  tracking  the  Index which is ranked and weighted by total dividends, the Fund aims to provide  investors  with  risk-adjusted  returns  that  are  superior  to traditional  market  capitalisation-weighted  indices  as  the  30  REITs comprising the Index will be ranked and weighted according to the  highest  total  dividends  paid  in  the  preceding  12  months subject  to  size,  free-float  market  capitalisation  and  liquidity  constraints.

Where to see the Prospectus?
Here is the link to download for the REITS ETF prospectus and product highlight sheet on MAS website
https://opera.mas.gov.sg/ExtPortal/Public/CIS/ViewSchemeDetail.aspx?schemeID=f2cbe5ff13324236b80f2c6128b919ab

During the initial offer period (05 October to 13 October 2016), you can place your orders by contacting your trading representatives.
Or you can call the following numbers of our participating dealers to help you in placing your order
Tel: 68121560
Feel free to Email us for more question!

INDICATIVE TIMETABLE:

Roadshow / Bookbuilding :            6th Oct to 13th  Oct
MAS registration :                           31st Aug 2016
Public Offer :                                    6th Oct 2016
Listing  on SGX mainboard          20th Oct 2016

INDICATIVE OFFERING PRICE RANGE:  USD0.88-USD1.10 per unit

Component/ Constituent Weightings of the Index 

As at 29 September 2016, the constituent REITs of the SGX APAC Ex-Japan Dividend Leaders REIT Index are:- 

Source: SGX Index Edge

Monday, October 3, 2016

12 Traits of Successful Traders


The following are a list of traits successful traders have, which have allowed me to earn a nice income in the trading market after integrating them into my own strategy.

  1. The habit to purchase pullbacks in an uptrends. Purchasing at the proper pullback level generally leads to profits if others are fearful to do the same. I like to buy uptrending stock as the trend already prove that this is a profitable stock. To me the pullback is a discount.
  2.  Successful traders always use position sizing and stop losses to regulate their risk per trade. They won’t risk their lifestyle, capital or careers on any singular trade. Never lose your sleep or get worried over your position. It it does, I will reduce the position till my sleeping point.
  3. Having the ability to sell Short on strength at critical resistance levels. In a market that’s bound or down, having the ability to sell short after a substantial move may lead to profits, and the risk/reward ratio will be in your favor.
  4.  Successful traders tend ride the big trend, and enjoy trading within the path of least resistance in a particular time-frame. Ride the trend till it bend.
  5.  Successful traders are adaptable and can be bearish or bullish sporadically based on the market trend and price action.
  6.  Successful traders perform thorough research on price action trends and historical charts and to determine what is effective, and what isn’t.
  7. They are passionate to make profit in the market, you need the passion and energy to do this work as it does not pay you a fixed salary every month
  8.  Successful traders optimize their winning trades and minimize their losing ones. Keep the losses small.
  9.  Successful traders despise losing money, and as such, ensure that any loss they suffer is minimal.
  10.  Successful traders don’t surrender when they are burned out or have a string of bad luck. 
  11. Successful trader mostly started as losing trader, it is through hard work to turn losing trader to winning trader
  12. Successul Trader manage risk, if you got no money, you can't trade.

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