The FTSE A50 Index tracks the performance of the 50 largest A-share companies listed on the Shanghai and Shenzhen stock exchange. Macquarie’s China A50 warrants give investors a broad exposure to the China story.

China funds finally saw positive inflows after 11 weeks of bleeding. The set of June/Q2 GDP data released over the week seemed to have alleviated investors’ previous concern on a “big fall” in 1H12 numbers, and Premier Wen’s comment, “China’s recovery is yet to build up momentum”, encouraged expectations on further policy stimulus.

But total equity flows fell in red as investors pulling money out of Asia regional/GEM funds. The week saw a clear trend that investors rotated money globally to North America (esp. US) and Pacific regions from other part of the world. Outflows were also driven by weakness in Greater China regional funds (likely attributable to deteriorated sentiment towards Taiwan).

Monthly cash and sector allocation (May data latest): Despite market weakness, cash level at China-dedicated funds was still below the 5-year average as of the end of May. With respect to sector allocation, Consumer Discretionary and Financials were among the most Overweighted by fund managers and Telcos, Energy and Utilities most Underweighted.

Key Global Macro Data this week
Tue 24 Jul: PRC Leading Economic Index (Jun), US House Price Index (May)
Wed 25 Jul: US New Home Sales (Jun)
Thu 26 Jul: US Durable Goods Orders (Jun), US Pending Home Sales (Jun), US Initial Jobless Claims
Fri 27 Jul: PRC Leading Index (Jun), US GDP (2Q)

Singapore Market Wrap

China's property curbs bring Asian markets lower

According to Xinhua News Agency, "China won't relax property control policies and will instead seek to keep a firm grip on the real estate market to prevent a rebound in housing prices." Despite Premier Wen Jiabao's comments to keep a tight grip on China property, some cities in China introduced home subsidies and discounts on mortgages for first-time home buyers. Still, as a result of Premier Wen's pledge to keep in place property curbs, China stocks fell, and the Shanghai composite ended 0.74% lower day on day.

The HSI however, rose for the second consecutive session on Friday, tacking on 0.42% to close at 19640.80. This is a 2.9% gain week on week (wow). The STI paled in comparison, closing at 3015.53, adding only 0.7% wow.

Call STI 2950MBeCW120831 (QE8W) exercise level 2,950.*
Call STI 3200MBeCW130328 (Q0QW) exercise level 3,200.*
Put STI 2850MBePW120831 (QE9W) exercise level 2,850.*
Put STI 2700MBePW130328 (Q0RW) exercise level 2,700.*

SGX tightens listing requirements
The SGX announced last week that it will introduce tighter listing conditions whilst ensuring that it remains as a competitive and relevant global exchange. However, these new conditions are expected to be more attractive for larger companies seeking to list. The new criteria will focus on recent profitability and market capitalisation instead of continuous profits. Also, new entrants must have a minimum IPO price of S$0.50 for each share.

SGX closed at $6.75, up 3.8% wow.

Call warrant SGX MB eCW120904 (P9HW) exercise price $6.50.*
Call warrant SGX MB eCW121203 (Q0LW) exercise price $7.50.*
Put warrant SGX MB ePW121203 (Q0BW) exercise price $ 6.00.*

Ezra won contracts worth US$87mil
As reported by Offshore Shipping Online, a publication for the offshore shipping industry, "Ezra Holdings has won six contracts worth a total of approximately US$87mil. The offshore support services division of the company has been awarded new charters for PSVs and anchor handlers. The charterers include oil majors, an independent exploration and production company and oilfield services company."

Ezra closed at $1.00, down 5.2% wow.

Call warrant Ezra MBeCW121101 (QD8W) exercise price $1.10.*

Overnight Market Wrap

Concerns grow after conference call by Euro-area finance ministers

The US markets slid on Friday, as investors mulled over Europe's economic health. Euro-area finance ministers held a conference call before US markets opened on Friday to discuss the final approval of the 100bil euro bailout plan for Spain. Spain will be receiving a 30bil euro down payment initially, with the condition that the Euro-area finance ministers have the right to oversee austerity plans in Spain.

Within the same session, other regional problems were brought up during the meeting. Spanish prime minister, Mariano Rajoy, forecasted a second year of recession at a time when unemployment rates are high and Valencia became the first state in Italy to "seek a rescue from central government". Elsewhere, Greece has a 3.1bil euros bond payment in August but there is lack of specification over how the ECB would ensure payments are met. Next week, international creditors will arrive in Athens to quantify the progress made on the bailout for Greece thus far.

With the Euro finance ministers highlighting new problems while re-visiting old ones, investors' confidence shrank and the S&P closed at 1358.2, down 1% dod.

Overnight Markets

Indices	Last	Change
STI	3015.53	-0.4%
HSI	19640.80	0.4%
DJIA	12822.57	-0.9%
S&P 500	1362.66	-1.0%
Nasdaq	2925.30	-1.4%
China A50	7594.55	-1.1%

Corporate News

Corporate Announcements

Results announcements:
Wed 25 Jul: Biosensors 1Q13, SIA 1Q13
Fri 27 Jul: SGX 4Q12
Mon 1 Aug: Cosco 2Q12, CapitaLand 2Q12
Thu 2 Aug: SembCorp Marine 2Q12, OCBC 2Q12
Tue 7 Aug: UOB 2Q12
Tue 14 Aug: IndoFood Agri 2Q12

Ex-dividend dates:
Wed 25 July: Keppel Corp ($0.18 interim)
Mon 6 Aug: SingTel ($0.09 final)