The two banks capitalised on the significantly high number of non-flow and non- leverage products distributed in 2020 - 4,123 and 3,402, respectively. South Korean securities houses and Thailand’s Phatra Securities saw their selling activities subdued in line with the overall shrinking of the domestic markets.
Knockouts linked to basket of indices and reverse convertible notes (RCNs) were the most used payoffs by sales volume and market share (US$57.7 billion, 17.9%) in 2020, replacing range and accrual. Leverage long/short with stop loss stay on top by issuance (18,799/13,902) as Hong Kong SAR's callable bull/bear contracts (CBBCs) continue to dominate issuance.
There were 105 structured products that collected a combined JPY285 billion (US$2.7 billion) added to the SRP Japan database in November (including flow products, but excluding private placements and leverage products).
Two hundred ninety-one products worth an estimated CNY 34.8 billion (US$5.4 billion) had strike dates in November.
There were 786 products issued in the retail segment in November, down 20% compared to October.
There’s been a significant shift in the underlying assets used in Asia Pacific year-to-date (YTD) compared to 2019: single stocks have taken over index baskets as most popular underlyings, featuring Meituan Dianping, Alibaba and Xiaomi. The USD 3M Libor does not appear.
The turnover of daily leveraged certificates (DLCs) listed on the Singapore Exchange (SGX) has jumped by 390% to SG$514m in November year-on-year (YoY) as ‘markets bounced between positive news on vaccine developments and the pandemic's spread,’ according to a SGX report.
Two senior executives from DBS Bank and United Overseas Bank (UOB) shared their views on the role of foreign banks plays in China and the innovation they’ve seen in the market at a panel organised by SRP on 2 December.
The Securities and Futures Commission (SFC) has released its latest report on non-listed structured products for public offering sold in Hong Kong SAR during the last quarter.