Here’s a recap of what we discovered while exploring Global & Chinese Financials at ETFestival 2021

In this recap of presentations recorded at ETFestival 2021 on the 15 May 2021, Ferlyn Tan, Senior Analyst, Stocks and ETFs Research at iFAST Financial shares about the outlook for the Global and Chinese financial sectors and the reasons why these are areas investors should consider.

iFAST Content & Marketing Team
iFAST Content & Marketing Team07 Jun 2021 4215 Views
Here’s a recap of what we discovered while exploring Global & Chinese Financials at ETFestival 2021

The financial sector plays an important role in any economy, being highly interconnected with everyone having at least one relationship with a financial institution be it for transaction, loans or insurance.

Global Financials

2020 may have been a year to forget for financial stocks, but we believe that the stars are aligning in favour of the Global Financials sector, from both a top-down and bottom-up perspective, making this sector an attractive space for investors to be in.

At ETFestival 2021 held on the 15th of May, Ferlyn covered the topic of global financials and shared five key catalysts that we believe will drive the earnings of global financials and their share prices.

The first is the full resumption of capital distribution programs across the banks. Second, the fall in loan loss provisions. Third, a potentially earlier than expected rate hike. Fourth, a recovery in insurance premiums and finally, healthy growth in global AUM (assets under management) within the wealth management industry.   

Watch Ferlyn’s presentation as she elaborates on these points in Global Financials - The City that Never Sleeps here.


China Financials

In this presentation concerning the China Financials, Ferlyn explains why the sector is an even more attractive space from a total potential return perspective vs it’s global peers.

In this presentation, she explains how China's financial sector is largely dominated by two industries, the banking industry and the insurance companies – and each of the unique forces that are driving growth in these areas.

Take for instance, while China’s big four banks have consistently traded at a much lower valuation as compared to their international peers for last five years, owing to a lack of research coverage and a lack of market transparency in China as well as a lack of diversified revenue stream. However as China commits to open up his financial market we believe that this valuation gap could start to narrow.

Meanwhile, the Chinese Insurance industry is the 2nd largest in the world, but with room to grow thanks to

1. A growing ageing population

2. Rising middle class population

3. Low insurance penetration rates in China

To what extent will this impact the Chinese Insurance industry and what other catalysts are behind Chinese Financials? Be sure to catch Ferlyn’s presentation here.


Invest

To invest in the Global Financials sector, you can consider the iShares Global Financials ETF (NYSE.IXG).

Our recommended ETF for the Chinese Financials sector is the Global X MSCI China Financials ETF (NYSE:CHIX).

To gain exposure specifically to the Chinese banking industry, our recommended etf is the BMO Hong Kong Banks ETF (HKEX: 3143).

All 3 of these ETFs are also available for subscription on our ETF RSP service, which allows you to invest a regular sum on a monthly basis starting from just US$50 (or HKD50 in the case of the Hong Kong Banks ETF) a month.

Sector

ETF

RSP

Global Financials

iShares Global Financials ETF (NYSE.IXG)

Apply for RSP

China Financials

Global X MSCI China Financials ETF (NYSE:CHIX)

Apply for RSP

Chinese Banks

BMO Hong Kong Banks ETF (HKEX: 3143)

Apply for RSP


ETF RSP Promotion

From now till 8 December 2021, investors can enjoy a 0% processing fee when they transact ETFs through a Regular Savings Plan (RSP) from a list of over 60 ETFs. And for a limited time from now till 31 May 2021, you can enjoy 2 free trades when you invest in FSMOne’s new 2021 ETF Focus List!

Read more about the 0% processing fee for RSPs promotion here.

Find out which are the best-in-class ETFs to invest in this year through our ETF Focus List 2021.

All materials and contents found in this site are strictly for general circulation and informational purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found/identified in this site. While iFAST Financial Pte Ltd ("IFPL") has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this report is made on a general basis and neither IFPL nor any of its servants or agents have given any consideration to nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You should consider carefully if the products you are going to purchase are suitable for your investment objective, investment experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment product. Past performance is not indicative of future performance. The value of the investment products and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. In respect of any matters arising from, or in connection with the said research analyses or research reports, recipients of the report are to contact IFPL at 10 Collyer Quay, #26-01 Ocean Financial Centre Building, Singapore 049315, or by telephone at +65 6557 2853. Where the report contains research analyses or research reports from a foreign research house and if the recipient of such research analyses or research reports is not an accredited investor, expert investor, institutional investor or an ex-accredited investor, IFPL accepts legal responsibility for the contents of such analyses or reports to such persons only to the extent as required by law. Please note that only certain security(ies) herein are available to all investors, while the rest are only available for certain persons to invest in, such as Accredited Investors (as defined in the Securities and Futures Act) or one who invests at least S$200,000 (or its equivalent currency) per transaction. To qualify as an Accredited Investor, one needs to submit a declaration form and certain relevant supporting documents, according to iFAST’s prevailing policies and procedures.

Please read our full disclaimers on the website at ( https://secure.fundsupermart.com/fsmone/policies/328125/investment-account-terms-&-conditions).

iFAST Financial Pte Ltd (IFPL) (registered address: 10 Collyer Quay #26-01 Ocean Financial Centre Singapore 049315, Telephone: 6557 2000) holds the Financial Advisers Licence issued by the Monetary Authority of Singapore ('MAS') to conduct regulated activities of advising on securities, marketing of collective investment schemes and arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance and the Capital Markets Services Licence issued by the MAS to conduct regulated activities of dealing in securities and providing custodial services for securities. While IFPL has made every effort to ensure the independence of the report's contents, IFPL's nature of business is such that IFPL and its connected and associated entities together with their respective directors, officers and staff may be involved in providing dealing or investment-related services in the abovementioned securities, and have taken or may take positions in the securities mentioned in this report, and may also act as the principal for any buy or sell trades.