The SRP Wrapper Guide Asia Pacific 2024 is out and available for download.
The structured deposit business was first introduced onshore in 2002, followed by China Construction Bank (Shanghai Branch) debuting the country’s first batch of FX-focused structured deposits in August 2003.
The number of structured deposit issuance rose in April, with the XAU/USD and EUR/USD product issuance doubling year-on-year. Also, Japan’s benchmark Nikkei 225 index-linked products emerge in the Chinese market.
Panelists discussed the timeline for potential interest rate cuts, low volatility, geopolitical risks and how structured product market participants can navigate current macro factors at the SRP Asia Pacific 2024 conference held in Singapore earlier this month.
The contingency plan comes after the UK bank’s Korea unit sold US$900m worth of autocallable products tracking the HSCEI.
Following the regulatory notice in July 2023, only three structured note distributors remain active in the mass retail market.
The analyst at the Korean securities house says that while the issuance of recently embattled equity-linked securities (ELS) tied to the performance of HSCEI is expected to recover in the long run, the market participants may pivot their attention to ELS tracking those stock indices of other advanced markets, such as US, Europe, and Japan.
Three panellists discussed the latest trends and innovations in indexing, including the need for simplicity in the face of increasing complexity, and how products responded to investors needs for high conviction as well as non-directional exposure.
The US equities rally over the past year has triggered a shift in the use of underlyings beyond the local market.