iboxx Asian Annual Index Review 2018 Results

Transcription

1 ibxx Asian Annual Index Review 2018 Results Friday, September 28, 2018 Cpyright 2018 IHS Markit Ltd

2 IHS Markit annunces results f the 2018 ibxx Asian Annual Index Review 3 ibxx ABF Pan-Asia Indices Market weights 3 ibxx Asia Indices Market weights 4 ibxx ALBI Indices Market weights 5 ibxx ADBI and ibxx AHBI Indices 6 Preference share-style AT1s 7 ibxx USD Asia ex-japan Indices 7 Preference share-style AT1s 7 New ibxx USD Asia ex-japan sub-indices 8 Other Asian ibxx Indices 8 Hang Seng Markit ibxx Offshre RMB Bnd Indices 8 ibxx SGD Indices 8 Real Estate Classificatin Schema Update 9 2

3 IHS Markit annunces results f the 2018 ibxx Asian Annual Index Review Fllwing the ibxx Annual Index Review fr the Asian indices cnducted between July and September 2018, IHS Markit is pleased t annunce the 2018 market weights fr the ibxx ABF, ALBI and Asia indices as well as the belw changes and clarificatins t the index rules fr the Asian ibxx indices. All changes, including the 2018 market weights have been reviewed by the ibxx Asian Oversight Cmmittee. ibxx ABF Pan-Asia Indices 2018 Market weights IHS Markit has calculated the 2018 weights f the eight markets included in the ibxx ABF indices. The new weights are effective frm 31 Octber 2018: Results 2018 market weights 2017 market weights Change China % % % Hng Kng 8.59 % 8.92 % % Indnesia 7.93 % 7.75 % 0.18 % Malaysia % % 0.55 % Philippines 5.65 % 5.83 % % Singapre % % 0.33 % Suth Krea % % % Thailand % 9.91 % 0.13 % The values fr each f the factrs used in the calculatin f the market weights are: Data Bnd market size Credit Rating Investability Indicatr Gvernment bnd market size China 9,026 A+ 54 1,372 Hng Kng 241 AA Indnesia 182 BBB Malaysia 339 A Philippines 107 BBB Singapre 287 AAA Suth Krea 1,993 AA Thailand 362 A

4 ibxx Asia Indices 2018 Market weights IHS Markit has calculated the 2018 weights f the ten markets included in the ibxx Asia Indices. n light f the cntinued develpments in the Bnd Cnnect and CIBM Direct access prgrammes. In line with the 2017 Annual Index Review discussin, the weight f China cntinues t mve twards the theretical target weight f 20%. Fr the 2018 weights review, the weight f China has been revised frm 13% t 17%. The new weights are effective frm 31 Octber Results 2018 market weights 2017 market weights Ttal Annual change China % % 4.00 % Hng Kng 9.24 % % % India 4.55 % 4.85 % % Indnesia 7.91 % 8.16 % % Malaysia % % % Philippines 5.60 % 6.11 % % Singapre % % % Suth Krea % % % Taiwan 0.00 % 0.00 % 0.00 % Thailand % % % The values fr each f the factrs used in the calculatin f the market weights are: Data Bnd market size Credit Rating Investability Indicatr Securities Market Access Gvernment bnd market size China 9,026 A ,372 Hng Kng 241 AA India 1416 BBB Indnesia 182 BBB Malaysia 339 A Philippines 107 BBB Singapre 287 AAA Suth Krea 1,993 AA Thailand 362 A

5 ibxx ALBI Indices 2018 Market weights IHS Markit has calculated the 2018 weights f the eleven markets eligible fr the ibxx ALBI Indices. The new target weights are effective frm 30 th Nvember 2018 and will be implemented in quarterly steps subject t a maximum change f ±.5% fr any single market. Fllwing the 2018 Asian Annual Index Review, the adjustment size fr Taiwan will be accelerated t -0.5% per quarter, as a result the weight f Taiwan will drp t 0% n 31 May IHS Markit cntinues t review the eligibility f Chinese Plicy Banks in the ibxx ALBI China Onshre index. Plicy Banks are large and regular issuers in the China bnd market, with the market size and liquidity similar t Chinese Gvernment Bnds. Uncertainty abut the withhlding tax treatment is the main reasn why Plicy Banks have nt been added t the ibxx ALBI index yet. The recent State Cuncil decisin t grant a 3-year tax hliday fr freign investrs will remve this uncertainty, but at this stage, the actual implementatin f the tax hliday has nt been annunced. As a result, IHS Markit will cntinue t mnitr the implementatin f the new tax measures and prvide updates nce the implementatin has been clarified market weights fr the 10 markets are: Results 2018 target weights 2017 target weights Annual change Current weights China nshre % % 0.00 % % China ffshre 2.18 % 2.49 % % % Hng Kng 5.04 % 4.93 % 0.11 % % India 7.15 % 7.69 % % % Indnesia 9.35 % 9.26 % 0.09 % % Malaysia % % 0.62 % % Philippines 6.71 % 6.91 % % % Singapre % % 0.02 % % Suth Krea % % 0.04 % % Taiwan 0.00 % 0.00 % 0.00 % % Thailand % 9.98 % 0.17 % % The values fr each f the factrs used in the calculatin f the market weights are: Data Index market cap Investability Indicatr Securities Market Access Gvernment bnd market size China nshre 1, ,372 China ffshre

6 Data Index market cap Investability Indicatr Securities Market Access Gvernment bnd market size Hng Kng India Indnesia Malaysia Philippines Singapre Suth Krea Thailand The weights fr each mnth f the quarterly implementatin are: Results 30-Nv Feb May Aug-2019 China nshre % % % % China ffshre % % % % Hng Kng % % % % India % % % % Indnesia % % % % Malaysia % % % % Philippines % % % % Singapre % % % % Suth Krea % % % % Taiwan % % % % Thailand % % % % ibxx ADBI and ibxx AHBI Indices As part f the ibxx Asian Annual Index Review 2018, IHS Markit reviewed the systematic inclusin f preference share-style AT1s in ibxx AHBI. The updated rules becme effective n 30 Nvember In additin, IHS Markit is currently reviewing the Financial Services classificatin and is cnsidering whether t prvide additinal sub-classificatins within Financial Services. N ther current sectr indices are impacted. IHS Markit will prvide an update by 31 December

7 Preference share-style AT1s Based n infrmatin as f 31 August 2018, the fllwing preference share-styled AT1s wuld be added t the ibxx AHBI effective 30 Nvember List f Preference Shares AT1s t be included: XS XS XS XS XS XS US455881AB80 XS Bank f Jinzhu C Ltd Bank f Qingda C Ltd Bank f Zhengzhu C Ltd China Cinda Asset Management C Ltd China Zheshang Bank C Ltd Huishang Bank Crp Ltd Industrial & Cmmercial Bank f China Ltd Pstal Savings Bank f China C Ltd ibxx USD Asia ex-japan Indices As part f the ibxx Asian Annual Index Review 2018, IHS Markit reviewed the systematic inclusin f preference share-style AT1s as well as the intrductin f new sub-indices fr ibxx USD Asia ex-japan indices. The changes becme effective n 30 Nvember IHS Markit is currently reviewing the Financial Services classificatin and is cnsidering whether t prvide additinal sub-classificatins within Financial Services. N ther current sectr indices are impacted. IHS Markit will prvide an update by 31 December Preference share-style AT1s Based n infrmatin as f 31 August 2018, the fllwing preference share-styled AT1s wuld be added t the ibxx USD Asia ex-japan Index effective 30 Nvember List f Preference Shares AT1s t be included: XS XS XS XS XS XS Bank f Jinzhu C Ltd Bank f Qingda C Ltd Bank f Zhengzhu C Ltd China Cinda Asset Management C Ltd China Zheshang Bank C Ltd Huishang Bank Crp Ltd 7

8 US455881AB80 XS Industrial & Cmmercial Bank f China Ltd Pstal Savings Bank f China C Ltd New ibxx USD Asia ex-japan sub-indices As part f the 2018 ibxx Asian Annual Index Review, IHS Markit will intrduce a number f new sub-indices: Categry China AT1 Real Estate China Crprates ex-real Estate New indices China AT1 China ex AT1 China Crprates ex AT1 Overall index and investment grade and high yield breakdwn Overall index and investment grade and high yield breakdwn The indices will be available frm 30 Nvember 2018 and will carry histrical data frm 31 December 2005 nwards. Other Asian ibxx Indices Hang Seng Markit ibxx Offshre RMB Bnd Indices Real estate classificatin schema update (see next page) ibxx SGD Indices Real estate classificatin schema update (see next page) 8

9 Real Estate Classificatin Schema Update As part f the ibxx Asian Annual Index review 2018, IHS Markit reviewed the sectr classificatins fr the Real Estate and Financial Services categries t enhance the cnsistency and quality f ur classificatin schema. The changes will be effective frm 30 Nvember 2018 and will nt affect histrical index levels and data. Current Schema Level 4 Level 5 Level 6 Level 7 Financials Financial Services Real Estate - General Financial - New Schema Level 4 Level 5 Level 6 Level 7 Financials Real Estate Real Estate Investment & Services - Real Estate Hlding & Develpment Real Estate Real Estate Investment Trusts - Diversified REITS - Retail REITS - Htel & Ldging REITs - Industrial & Office REITs - Specialty REITs Financial Services General Financial - Specialty Finance - Asset Managers - Cnsumer Finance Impacted Indices and Bnds ibxx SGD Indices - N change in main benchmark, change nly affects the financial services sub-indices - 78 bnds - 2 sub-indices Markit ibxx SGD Financials Financial Services Markit ibxx SGD Financial Services ex-perpetuals Hang Seng Markit ibxx Offshre RMB Bnd Indices - N change in main benchmark, change nly affects the financial services sub-indices - 10 bnds - 9 sub-indices Hang Seng Markit ibxx Offshre RMB Financial Services Large Cap Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services Investment Grade Bnd Index 9

10 Hang Seng Markit ibxx Offshre RMB Financial Services Large Cap High Yield Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services Investment Grade Rated Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services High Yield Rated Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services Rated Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services High Yield Bnd Index Hang Seng Markit ibxx Offshre RMB Financial Services Large Cap Investment Grade Bnd Index 10