Economist, Centennial Asia Advisors

Jason Tan

Economist

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

Economic Policy and Strategic Advisors

Macroeconomics

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Reduced deflation fears: Inflation rose to 1.2% y/y in Sep 16 from 0.4% in August, the highest inflation since February. Core inflation was 1.3% y/y in Sep 16, up from 1.1% in Aug 16.</li>
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Exports drag growth down, falling 5.9% y/y in Sep 16, from 2.6% in Aug 16. Declining imports (down 2.0%) reflected continuing weakness in domestic demand.</li>
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Rising indebtedness weighs on investment and consumption: Non-performing loans in major enterprises reached KRW19.72tr in Jan–Jun 16, up by KRW1.37tr from…</li>
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Reduced deflation fears: Inflation rose to 1.2% y/y in Sep 16 from 0.4% in August, the highest inflation since February. Core inflation was 1.3% y/y in Sep 16, up from 1.1% in Aug 16.

Exports drag growth down, falling 5.9% y/y in Sep 16, from 2.6% in Aug 16. Declining imports (down 2.0%) reflected continuing weakness in domestic demand.

Rising indebtedness weighs on investment and consumption: Non-performing loans in major enterprises reached KRW19.72tr in Jan–Jun 16, up by KRW1.37tr from…


South Korea: Policy Efforts to Sustain Tepid Economic Momentum

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the exact dates of when these new measures will be enforced were not announced, these measures are expected to become enforced starting 4Q16. Financial Services Commission (FSC) is the key government entity that is spearheading these changes. We believe the net effect of these changes is positive for the investors and negative for the securities companies…

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the exact dates of when these new measures will be enforced were not announced, these measures are expected to become enforced starting 4Q16. Financial Services Commission (FSC) is the key government entity that is spearheading these changes. We believe the net effect of these changes is positive for the investors and negative for the securities companies…

Important Regulatory Changes for IPOs on the KOSDAQ Exchange

Saenuri Party (of National Assembly in Korea) is proposing a 60 days short selling regulation. If it does get passed by the National Assembly, it could negatively impact institutional investors' ability to short sell stocks in Korea. There is a lack of such regulation found in other developed financial markets, which could make it difficult to pass such regulation. A decision on this regulation is expected to be announced by end of October. How does this newly proposed regulation work? Although…

Saenuri Party (of National Assembly in Korea) is proposing a 60 days short selling regulation. If it does get passed by the National Assembly, it could negatively impact institutional investors' ability to short sell stocks in Korea. There is a lack of such regulation found in other developed financial markets, which could make it difficult to pass such regulation. A decision on this regulation is expected to be announced by end of October. How does this newly proposed regulation work? Although…

The Saenuri Party Is Proposing a 60 Days Short Selling Regulation

<ul><li>The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court receivership, Samsung Electronics involved in a major product recall of Galaxy Note 7, the start of One-Shot Act program, the opening of Shinsegae's Starfield Hanam, and Hanmi Pharm's ending of license deal with Boehringer.</li><li>The best-performing sectors in September were Media/Telecom (up 3.1% YoY) and Software/Internet (up 2.8% YoY). The worst-performing sectors were Health Care (down 2% YoY) and Shipbuilding (down 2.6% YoY). </li><li>Our top picks in the stock market were up 0.1% on average in September versus KOSPI which was up 0.2% in the same period. </li></ul>

The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court receivership, Samsung Electronics involved in a major product recall of Galaxy Note 7, the start of One-Shot Act program, the opening of Shinsegae's Starfield Hanam, and Hanmi Pharm's ending of license deal with Boehringer.The best-performing sectors in September were Media/Telecom (up 3.1% YoY) and Software/Internet (up 2.8% YoY). The worst-performing sectors were Health Care (down 2% YoY) and Shipbuilding (down 2.6% YoY). Our top picks in the stock market were up 0.1% on average in September versus KOSPI which was up 0.2% in the same period. 

Korea Stock Market Monthly Recap #6 - (September 2016)

EM PM, Ecstrat

Emad Mostaque

EM PM

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Senate and Congress have overridden President Obama's veto on the Justice Against Sponsors of Terrorism (JASTA) legislation, designed to allow families of victims of terror attacks on US soil to sue any member of foreign governments (specifically the Saudi government) for support of these acts.The stripping of sovereign immunity will have profound implications for global geopolitics and the increasingly strained relationship of Gulf states and their traditional Western allies, particularly at a time when the USA is pivoting away from the Middle East towards the perceived increasing threat in Asia.

Senate and Congress have overridden President Obama's veto on the Justice Against Sponsors of Terrorism (JASTA) legislation, designed to allow families of victims of terror attacks on US soil to sue any member of foreign governments (specifically the Saudi government) for support of these acts.The stripping of sovereign immunity will have profound implications for global geopolitics and the increasingly strained relationship of Gulf states and their traditional Western allies, particularly at a time when the USA is pivoting away from the Middle East towards the perceived increasing threat in Asia.

South Korea

iShares MSCI South Korea ETF is an exchange traded fund incorporated in the USA. The ETF tracks the performance of the MSCI Korea 25-50 USD Index. The fund holds companies of all market caps which are primarily traded on the Korean exchange. The ETF's holdings are primarily focused in the consumer discretionary, financial and information technology sectors.

iShares MSCI South Korea ETF (EWY US)

South Korea: Policy Efforts to Sustain Tepid Economic Momentum

Reduced deflation fears: Inflation rose to 1.2% y/y in Sep 16 from 0.4% in August, the highest inflation since February. Core inflation was 1.3%...

Jason Tan

Important Regulatory Changes for IPOs on the KOSDAQ Exchange

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the...

Douglas Kim

The Saenuri Party Is Proposing a 60 Days Short Selling Regulation

Saenuri Party (of National Assembly in Korea) is proposing a 60 days short selling regulation. If it does get passed by the National Assembly, it...

Douglas Kim

Korea Stock Market Monthly Recap #6 - (September 2016)

The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court...

Douglas Kim

JASTA Will Push Saudi East

Senate and Congress have overridden President Obama's veto on the Justice Against Sponsors of Terrorism (JASTA) legislation, designed to allow...

Emad Mostaque